Belt Insurance Agency
  • Home
  • Quotes
    • Auto Quote
    • Homeowner Quote
    • Life Quote
    • Business Quote
    • Condo Quote
    • Renters Quote
  • Service
    • Make a Payment
    • Update Contact Info
    • Proof of Insurance
    • Contact My Carrier
  • Blog
  • About
    • Staff Directory
    • Insurance Carriers
    • Client Testimonials
    • Refer a Friend
  • Contact

Drive for Uber or Lyft? Mind your insurance gap

10/24/2017

0 Comments

 
With ridesharing services like Uber and Lyft, now anyone with a smartphone can become a driver for hire where, instead of flagging down the car like a passing taxi, customers use a mobile app to request and pay for a ride.
But here’s the catch. Since many of the drivers who work for ridesharing companies do not have a livery driver’s license and their cars are neither registered nor insured as commercial vehicles, it creates an insurance gap, or a period of time when they are underinsured and taking on more financial risk.
Companies like Uber and Lyft are called a Transportation Network Company (TNC) and there are different coverage periods for these drivers. If you drive for a TNC, make sure you know the three distinct coverage periods and the insurance coverage you need at each time.
Period one:
The app is turned on and the driver is waiting for a fare.
Period two:
The fare has been accepted and the driver is on the way to pick up the passenger.
Period three:
The passenger is in the car.
Right now, TNCs only provide full coverage in periods two and three, meaning drivers are likely to be underinsured during period one, which begins the moment they turn on the app, but before they accept a fare. And some drivers may not be aware of this gap in insurance coverage. If there is an accident during period one, the driver may be on the hook to cover the cost of some liability damages and have no coverage to repair their vehicle. Different ridesharing companies have different coverages during this period, so adding a specific rideshare gap endorsement onto their personal auto insurance policy could keep the driver fully insured.
If you’re thinking about driving for a TNC, ask what level of coverage it provides during each period. Drivers should also contact their own auto insurer to address gaps, if any, in their liability protection. It is also recommended that TNC drivers review a copy of their TNC’s insurance contracts so they know the exact terms and conditions of the coverage.
Knowing your insurance needs as a ridesharing driver doesn’t have to be complicated. Your local independent agent can help guide you through it and make sure you have the insurance protection you need.
Grange Insurance offers ridesharing gap coverage that enables TNC drivers to fill in their gaps in coverage. If insurance policy coverage descriptions in this article conflict with the language in the policy, the language in the policy applies. To learn more about Grange’s ridesharing gap coverage, speak with your independent Grange agent.
Reference:
- Insurance Information Institute
- https://www.grangeinsurance.com/tips/drive-for-uber-lyft-mind-your-insurance-gap


0 Comments

    Contact Us

    (740) 927-1469
    30 S Township Rd
    ​Ste B

    Pataskala, OH 43062
    Click Here to Email Us

    Archives

    March 2023
    February 2023
    October 2022
    September 2022
    August 2022
    May 2022
    April 2022
    March 2022
    February 2022
    October 2021
    August 2021
    April 2021
    January 2021
    December 2020
    October 2020
    September 2020
    May 2020
    April 2020
    March 2020
    January 2020
    October 2019
    September 2019
    August 2019
    July 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    October 2018
    August 2018
    July 2018
    May 2018
    April 2018
    March 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    January 2017
    October 2016
    September 2016
    July 2016
    June 2016
    May 2016
    February 2016
    January 2016

Navigation

Homepage
Insurance Quotes
Policy Service
Insurance Products
Contact Us
​
Agent Login

Connect With Us

Contact Us

Belt Insurance Agency
30 S Township Rd Ste B
Pataskala, OH 43062
(740) 927-1469
Click Here to Email Us

Location

Pataskala Banking Company.jpg by Wdzinc | CC-BY-SA-3.0 | Website by InsuranceSplash
  • Home
  • Quotes
    • Auto Quote
    • Homeowner Quote
    • Life Quote
    • Business Quote
    • Condo Quote
    • Renters Quote
  • Service
    • Make a Payment
    • Update Contact Info
    • Proof of Insurance
    • Contact My Carrier
  • Blog
  • About
    • Staff Directory
    • Insurance Carriers
    • Client Testimonials
    • Refer a Friend
  • Contact