In the age of Uber and Lyft, ridesharing has become commonplace. But before you hit the road as a rideshare driver, it's crucial to understand the ins and outs of rideshare insurance. While it might not be the most exciting aspect of your new gig, having the right coverage can save you from unexpected financial potholes.

The coverage issue

Rideshare companies offer insurance to their drivers, but it's not always a smooth ride. Your personal auto insurance policy might leave you high and dry when you're in "rideshare mode," and the company's coverage can have some significant gaps. 

The periods of rideshare driving

To understand your coverage needs, it's essential to know the four periods of rideshare driving:

• Period 0: App off, you're just cruising. Your personal insurance has your back.
• Period 1: App on, waiting for a match. This is the danger zone – your personal policy probably won't cover you, and the rideshare company offers limited liability coverage.
• Period 2: You're matched and en route to pick up your rider. The rideshare company provides primary coverage.
• Period 3: Passenger aboard. You're covered by the rideshare company's policy.

Mind the gap

The most significant insurance gap occurs during Period 1. You're technically working, but you don't have a passenger yet. Your personal policy is taking a coffee break, and the rideshare company's coverage is minimal. This is where rideshare insurance comes in handy.

Rideshare insurance to the rescue

Rideshare insurance is designed to fill the coverage gaps left by personal policies and rideshare company insurance. It typically extends your personal auto coverage to include Period 1, ensuring you're protected whenever you're behind the wheel.

The good news? It's more affordable than you might think. Depending on your provider, rideshare coverage can cost as little as an extra $5 per month. Many auto insurance companies offer it as an optional add-on to your existing policy.

Get expert advice from AAA Insurance

Navigating the world of rideshare insurance can be complex, but you don't have to go it alone. AAA Insurance advisors are here to help you find the best coverage tailored to your specific needs. 

Our experienced team understands the unique challenges faced by rideshare drivers and can guide you through the process of selecting the right insurance package.

AAA Insurance