If You are an Uber, Lyft or TNC Driver and Think Your Personal Auto Policy Has You Covered, Think Again

Trying to make a little extra money with a side job outside of your regular employment is a great way to supplement your income.  However, if you are thinking of becoming a driver for a Transportation Network Company (TNC) like Lyft or Uber, you may want to consider more than just the fare you will be receiving.  You will need a separate commercial insurance policy if you want coverage for yourself during rides.

Your personal auto insurance policy will not cover you, your passengers, your vehicle, other vehicles, or anything while you are in the process of picking up or driving a passenger to a destination.  In fact, just driving with the TNC app on deems your vehicle “in use” and nullifies your personal auto insurance coverage.

According to the National Association of Insurance Commissioners’ Transportation Network Company Insurance Principles for Legislators and Regulators, it is important for drivers to be educated on the rules regarding the commercial use of your vehicle.  Taken directly from the Transportation Network Company Insurance Principles for Legislators and Regulators:

“Standard personal auto policies often include exclusions for transporting passengers for a fee.

• Drivers should read their PAP (personal auto policy) to determine if exclusions exist and if so, at what period the exclusion goes into effect.
• Drivers should contact their insurer or agent to inform them of their decision to participate in ride-hailing arrangements as a driver and discuss the details of their policy to determine coverage options. Some insurers may cancel or non-renew insureds that drive for TNCs. If this happens, the driver will need to find an alternate insurer. It is illegal in most states to drive without proof of financial responsibility. In some states, this may result in fines, suspension of driving privileges or repossession of the vehicle.

-The availability of coverage through the TNC with which they intend to do business.

• Drivers should read the TNC’s insurance policy to determine the period in which the TNC’s commercial auto policy begins and ends in the livery process.
• Drivers should also determine the types and amounts of coverages available through the TNC.
  • Drivers should ask about the liability limits, coverage for medical payments, personal injury protection in no-fault states, comprehensive (otherwise known as other than collision), collision coverage and UM/UIM coverage.”

To hear more about commercial auto policies and how to protect yourself as a TNC driver, call us.