Becoming a rideshare driver (think Uber/Lyft) is a great way to earn a little extra income. You set your hours and schedule, and are your own boss.

But, did you know there's a gap in your auto insurance coverage when you drive for a transportation network company (TNC)?  Nearly every carrier’s auto policies exclude coverage for incidents that occur when a personal vehicle is used to transport paying passengers; i.e., during ridesharing.

Here's the truth: the entire time your TNC app is on, your personal auto policy is suspended. You can purchase rideshare coverage, but only for the period of time between accepting the passenger and dropping off the passenger. No passenger means no coverage for your vehicle and any damages or injuries sustained from an accident.

Also: if you don't have adequate coverage and get in an accident, you could risk losing being dropped completely from your insurance company. (And if this happens, getting insured through another carrier will generally cost you more.) As such, be sure you contact your agency as soon as you sign on with a TNC. The good news is, given the popularity of ridesharing, there are lots of insurance companies that now offer rideshare policies - including gap coverage - for customers.

Here's more information on ridesharing gap insurance:

 

Ridesharing Gap Coverage from Grange Insurance from Grange Insurance on Vimeo.

Sources: Safeco, RideSharing Insurance | The Rideshare Guy, Why Do I Need a Rideshare Insurance Policy?

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