Rideshare services like Uber and Lyft have transformed transportation across the globe, including right here in Oklahoma. These services provide convenient alternative ways for individuals to get around, while also offering drivers a flexible source of income. However, there are some things to consider in regards to insurance if you’re driving for a rideshare company, as your standard personal auto policy may not be enough to fully protect you. Today we’re going to dive into a bunch of details regarding insurance for rideshare drivers here in Oklahoma, to tell you exactly what Uber and Lyft drivers need to know.
Does Uber & Lyft Provide Insurance for Drivers?
The first thing to consider is if these two companies provide any insurance coverage for their drivers. While the answer is yes, it’s quite limited and dependent on whether or not the driver is actively transporting a passenger or simply waiting for a ride request. Fortunately, both companies actually follow nearly identical structures for their insurance policies, which include three different periods.
- Period 1 — This period takes place after logging into the app but before accepting a ride request.
- During this period, the two companies provide limited liability coverage to their drivers but do not cover collision or comprehensive damage to your vehicle. This coverage is typically for $50,000 per person and $100,000 per accident.
- Period 2 — This period kicks in after accepting a ride request and lasts while traveling to pick up.
- At this stage, Uber and Lyft upgrade their liability coverage to $1 million and add contingent collision and comprehensive insurance to the mix as long as the driver has their own policy with these coverages in place.
- Period 3 — This period takes place while the driver is actively transporting any passengers and lasts until drop-off, at which point the cycle returns to Period 1.
- The coverage during this period is identical to that of Period 2, except that any passengers are also covered.
These policies are great and do offer substantial liability protection for each company’s drivers; however, they certainly don’t cover all circumstances. You’re especially at risk if your vehicle is damaged between rides or while you’re simply waiting for a passenger to arrive at your vehicle.
Is Personal Auto Insurance Enough?
If you have a pretty solid personal auto insurance policy of your own, you might assume that adding the policy provided by Uber or Lyft on top of it will be enough to ensure coverage. Unfortunately, this is often not the case, as a vast majority of personal policies exclude commercial activity — which is exactly what ridesharing is.
You might file a claim for a collision that occurred during Period 1, but because you were technically in the middle of commercial activity they could deny your claim, leaving you responsible for all of the repair costs and medical expenses that your employer’s limited liability coverage doesn’t cover.
It’s also important to remember that the collision and comprehensive coverage provided by Uber and Lyft will only apply if you have those coverages on your personal policy. In other words, you’ll want to make sure that they’re included in your policy or you could end up on the hook for far more than you realized.
What Is Rideshare Insurance?
Don’t worry, because you do have an extra option that can help to bridge the gap between your personal policy and the coverage provided by your employer: rideshare insurance! These policies will typically provide extra protection during Period 1, so that you’re better covered while waiting for ride requests. A lot of rideshare insurance policies will also extend the collision and comprehensive options you have to provide you even better coverage and further reduce your out-of-pocket expenses in the event of an accident.
Where Can I Get Rideshare Insurance In Oklahoma?
Now that you know what rideshare insurance is and just how important it is in making sure you’re covered while doing your job, you might be wondering where you can find it here in Oklahoma. The good news is that a wide array of insurers will now offer rideshare-friendly policies, both as standalone coverage or as an add-on endorsement with which you can augment your existing policy. We’d be happy to help you find the right rideshare insurance to suit your specific situation and needs, so feel free to contact us right here at Glover Family Independent Insurance!