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Do Rideshare/Delivery Drivers Need More Than Their Own Car Insurance?

Harry Campbell The Rideshare Guy
September 23, 2022

Discover if your car insurance covers enough and what you need to know about gig insurance. If you’ve wondered, “what does rideshare insurance cover?,” look no further because we answer your question in great detail.

Buckle has partnered with Harry Campbell, founder of TheRideshareGuy.com, to provide our Members with the very best tips, tricks, and news to help maximize their income as a rideshare and delivery driver.

Car insurance is one of those things people rarely think about until it's time to pay the bill or they’re involved in an accident. When you sign up to drive for a company like Uber or Lyft, they make a special point of telling you they are providing you with rideshare coverage while you’re carrying passengers and/or making deliveries, but is the coverage they provide enough? Does rideshare insurance cost more than car insurance? Find out below.

What Does Rideshare or Delivery Driver Insurance Cover?

In case you’re not familiar with the subject , rideshare or delivery insurance is a type of insurance that protects you and your vehicle.  

Before we answer questions like, “Do rideshare drivers need extra insurance?” or, “Does insurance for uber cover enough?” we must acknowledge something. The first thing to realize is that car insurance for rideshare and delivery drivers is handled differently at every TNC or DNC company, so you need to take the time to read the fine print when you sign up. As an example, UberEats provides drivers with different levels of coverage, depending on what part of the delivery process you’re in.

Example of Uber Eats Insurance Coverage:

Offline or the Driver app is off

Your chosen personal insurance policy and coverages apply.

Available or waiting for a delivery request

Uber maintains the following auto insurance on your behalf in case of a covered accident:  

Third-party liability if your personal auto insurance doesn’t apply.

  • $50,000 in bodily injury per person
  • $100,000 in bodily injury per accident
  • $25,000 in property damage per accident

En route to pick up deliveries and during trips

Uber maintains the following auto insurance on your behalf in case of a covered accident:  

  • $1,000,000 third-party liability
  • Contingent comprehensive and collision
  • Up to actual cash value of the car with a $2,500 deductible

*Excluding accidents occurring in New York State*

Other companies, like DoorDash cover you while you’re on the road making the delivery, but not while you’re waiting on a delivery request. Then there are also companies like Instacart, which rely on drivers to have their own insurance coverage and do not provide insurance coverage to delivery drivers at all.

In most cases, when a company does provide drivers with insurance, it is only limited coverage. While they provide some coverage, you may find it inadequate if you have extensive damage to your vehicle or exceed their coverage limits. Additionally, you could find that some of the company's coverage only kicks in after your primary auto coverage has paid first.

What About My Personal Car Insurance – Won’t That Cover My Rideshare Trips?

Personal car insurance policies do not typically cover rideshare trips. Since the price the insurance company quoted you for their policy was based on the number of miles they expected you to drive, and they assumed that the only passengers you would have would include family and/or friends, driving your vehicle for commercial trips falls outside the scope of what they expected you to use your vehicle for, as well as the number of miles they expected you to drive each year.

Once you begin transporting others for money, you’re on the road more. At that point, you’re not only increasing the number of miles that you drive, but you’re also decreasing the value of your vehicle. Plus, the more you drive, the bigger the odds you could have an accident while you’re “at work.”

What About When I’m Working as a Delivery Driver – Will Delivery Insurance Cover Me There?

Many delivery drivers take the “don’t ask—don’t tell” philosophy when they sign up to deliver food or groceries because they assume delivery insurance coverage isn’t an issue since they’re not carrying passengers. Unfortunately, insurance companies look at this type of driving as using your vehicle for a commercial purpose. It then gives them the right to deny your claim if you’re involved in an accident.

You might think this isn’t an issue because the delivery company has said they are providing you with insurance, but the problem with this is that usually the delivery company only pays once your primary car insurance has settled their claim. And, should your insurance company learn what you’ve been doing, you could very well find your claim denied and your insurance policy canceled.

What to Do? Try Special Gig Insurance

Since rideshare and delivery work has become so popular in the last few years, many major insurance companies now offer drivers the ability to add riders to their policy or to add on additional coverage. This is sometimes referred to as special insurance, or your insurance company may simply call it commercial car insurance since it basically changes the purpose of why you are driving your vehicle from personal to business.

Since knowing what you need and understanding exactly how much you’ll have to pay is rather tricky to navigate over the Internet, you may find it helpful to talk directly to your agent to ensure that you get the right insurance and that you’re only paying for the coverage you need.

Filling the Gap With Rideshare Gap Protection

The popularity of the rideshare/delivery industry has created a new market for insurance that can fill the gap between the insurance a rideshare/delivery company provides and your personal insurance coverage.  

For ultimate convenience, Buckle offers insurance for both personal and rideshare driving. They offer insurance coverage for rideshare and delivery drivers, too. Many customers have chosen Buckle's Lyft and Uber driver insurance for the following reasons:  

  • Affordable Rates
  • Deductible as low as $500
  • No credit check

Get a rideshare insurance quote today and drive with peace of mind!

Final Thoughts

The rideshare or delivery insurance from your TNC or DNC company may offer you some coverage, but you could find it inadequate if you ever need to use it. Worse—your insurance company could deny your claim or even cancel your coverage if they discover you’ve been using your vehicle for commercial purposes without notifying them.  

Using a company like Buckle, which specializes in rideshare insurance for drivers, is your best bet to ensure you’re safe and covered while driving.

Frequently Asked Questions About Rideshare Insurance

So, What is rideshare insurance?

Rideshare insurance is a type of insurance that protects you and your vehicle if you drive for delivery companies or offer delivery services.

What does company-provided rideshare insurance cover?

Rideshare car insurance is typically handled differently at every delivery company, so you’ll need to read the fine print when you sign up. At Buckle, we're dedicated to supporting rideshare drivers like you with affordable protection every time you get behind the wheel. Get a quote today and find out how Buckle can save you money when purchasing rideshare insurance policies!

Harry Campbell is a former Boeing Aerospace Engineer and founder of TheRideshareGuy.com, a blog, podcast and Youtube channel for ridehail drivers and other gig workers and author of, The Rideshare Guide. Over the years, Harry has covered the gig economy industry closely and talked to tens of thousands of drivers and gig workers about their experience on the road.

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