Rideshare Drivers face a Potential Gap in Insurance Coverage
The National Association of Insurance Commissioners (NAIC) is encouraging Rideshare Drivers to "be aware of potential gaps in insurance coverage" (NIAC Consumer Alert). But what kind of gaps are they talking about?What Kind of Gaps?
Generally, your personal auto insurance policy wasn’t designed to provide you with coverage when you are working as a rideshare driver. And, rideshare companies’ full commercial liability coverage doesn’t apply until you accept a ride. When you add a Rideshare Endorsement, you can avoid a potential gap in coverage by extending your personal auto insurance coverage when you are logged in and waiting to be matched with your next rider.Doesn’t the rideshare company’s insurance policy cover me when I’m working?
When you log in to the rideshare company’s app, you may only be covered by the rideshare company’s limited liability coverage until you accept a ride and their full commercial liability coverage applies. While you are waiting to be matched with your next rider, their policy generally only provides limited liability coverage* for medical expenses and damage you cause to others if an accident is your fault. Damage to you or your car are not typically covered by this policy. You could be faced with a serious coverage gap that would require you to pay for damages out of your own pocket.Doesn’t my personal auto insurance policy cover me?
Probably not. Many personal auto insurance providers exclude coverage when you are using your vehicle as a rideshare driver.What is the Solution?
Fortunately for New Jersey Rideshare Drivers, there is a new Rideshare Endorsement available in New Jersey from Farmers Insurance.® Get coverage here: NJRideshareInsurance.comWhat does Farmers Rideshare cover?
Farmers Rideshare extends your personal auto insurance coverage through Period 1 until you accept a ride and the rideshare company’s full commercial liability coverage applies in Periods 2 & 3. This policy enables you to select the coverage that fits your needs, including:- Comprehensive and collision coverages that pay for damages to your car
- Uninsured motorist coverage, in case you are hit by a driver who isn’t insured or is underinsured„„
- Medical payment and personal injury protection (if required)
Farmers Rideshare coverage ends when you accept a ride. The rideshare company’s full commercial liability coverage applies until that ride exits your car. Farmers Rideshare once again applies until you accept your next ride.
How do I get Rideshare Coverage?
Go to NJRideshareInsurance.com to get a Farmers Smart Auto Plan Policy with Farmers Rideshare.* Rideshare companies may maintain higher coverage limits and additional coverages as needed to meet the minimum requirements in all states. Minimum limits vary by state. In California for example, the limits are $50k bodily injury for one injured individual; $100k total bodily injury coverage limit; $30k property damage to someone else’s property per incident.
