Rideshare Insurance Endorsement For Uber, Lyft, and Sidecare Drivers

We’re excited to announce that on May 28’th, Nelson Insurance will be offering an optional Rideshare Insurance endorsement from Farmers Specialty Insurance. Farmers is the first major insurance company in California to offer this extended coverage, and it will help eliminate massive coverage gaps in your existing plan.

Ridesharing has 3 periods:
Period 1: Driver has app turned on, but hasn’t accepted a ride request
Period 2: Driver and passenger are matched, but driver hasn’t picked them up
Period 3: Passenger has been picked up

We’ll use Uber’s insurance as an example (http://blog.uber.com/uberXridesharinginsurance). Other rideshare companies’ insurance may function differently.

During periods 2 and 3 Uber will provide $1mil. of liability and uninsured motorist coverage. They offer contingent comprehensive and collision (full coverage) with a $1000 deductible, but only if your personal auto insurance includes full coverage. If you crash while driving an Uber passenger, you’ll pay your deductible to repair your car, up to their maximum vehicle limits. Your personal auto insurance offers no coverage during these two periods.

Period 1 (app on, but haven’t accepted a ride) is where you have the gap in coverage. Uber drops your liability coverage to $50,000 bodily injury per person, $100,000 per accident, and $25,000 of property damage. They offer no comprehensive, collision, or uninsured/underinsured motorist coverage for this period, and your personal auto insurance typically excludes this as well. If you crash your car with your app on, there is no coverage to repair your own car, and you’ll be paying out of pocket. You’ll also have no coverage if an uninsured driver hits you. This is where the Farmers Specialty Insurance Rideshare Endorsement extends coverage. The endorsement extends full coverage for your car for period 1 if you’ve purchased comprehensive and collision. If you’ve purchased greater liability limits than the 50/100/25 from Uber, the additional liability applies, as well as uninsured/underinsured motorist coverage on your policy.

This is an amazing coverage extension that only costs an average of 8% more than the basic policy. We can have your quote put together and in your hand in as few as 10 minutes, so give us a call or email for your quote today!


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