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What You Should Know About Insurance When Driving for Uber or Lyft in Denver, CO

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Thinking of becoming a rideshare driver for Uber or Lyft? It’s an exciting opportunity to earn some extra income while enjoying the flexibility of setting your own schedule. However, before you hit the road, it’s crucial to understand how insurance works when driving for these platforms. In this article, we’ll discuss the key insurance considerations and what you should know as a rideshare driver.

  1. Personal auto insurance and rideshare coverage: When you use your vehicle for personal purposes, your regular auto insurance policy typically covers you. However, when you drive for Uber or Lyft, your personal policy may not provide coverage during rideshare activities. That’s where rideshare insurance comes into play. It’s a specialized type of coverage that fills the gaps in your personal policy while driving for a rideshare company. Contact your insurance provider to explore rideshare coverage options available in your area.
  2. Rideshare company insurance: Uber and Lyft also provide insurance coverage for their drivers. This coverage usually applies when you’re actively using the app and carrying passengers. The coverage levels may vary depending on the stage of the trip, such as when you’re waiting for a ride request, en route to pick up a passenger, or when the passenger is in your vehicle. Familiarize yourself with the insurance policies offered by Uber or Lyft, including the deductibles and coverage limits.
  3. Periods of rideshare activity: Understanding the different periods of rideshare activity is crucial when it comes to insurance coverage. Period 1 starts when you turn on the app and are waiting for a ride request. During this time, your personal auto insurance may not cover you, and the coverage provided by Uber or Lyft may be limited. Periods 2 and 3 cover the time when you’re actively transporting a passenger. The coverage from the rideshare company generally provides higher liability limits.
  4. Gap coverage: One of the potential insurance gaps occurs when you’re waiting for a ride request (Period 1) and your personal insurance doesn’t provide coverage. To address this gap, some insurance companies offer specific rideshare endorsements or policies that provide coverage during this period. Gap coverage ensures you’re protected even when your personal policy doesn’t apply. Consider exploring this option to ensure continuous coverage throughout your rideshare activities.
  5. Communicate with your insurance provider: It’s essential to communicate with your insurance provider and inform them that you’re driving for Uber or Lyft. Some insurers may require you to adjust your policy or add a rideshare endorsement to maintain proper coverage. Failing to disclose your rideshare activities could potentially lead to a denied claim if an incident occurs. Open and honest communication with your insurer is crucial to ensure you have the right coverage.
  6. Keep detailed records: Maintaining detailed records of your rideshare activities can be helpful in case of an insurance claim. Keep track of the dates and times you were actively driving for Uber or Lyft, as well as any accidents, incidents, or conversations with passengers. These records can provide important evidence and assist in the claims process.

Becoming a rideshare driver for Uber or Lyft can be a lucrative side job, but it’s important to understand the insurance implications. Make sure to explore rideshare coverage options, understand the insurance provided by the rideshare companies, and communicate with your insurance provider to ensure you have the appropriate coverage throughout your rideshare activities. Keeping detailed records and being proactive about your insurance needs will help protect you and your passengers on the road. Drive safely, enjoy the flexibility, and make the most of your rideshare journey!

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