Do I Need Rideshare Insurance?

Posted in Car accidents on January 29, 2020

Major rideshare companies like Uber and Lyft are incredibly popular in the United States and here in Tennessee. Are you considering driving for a rideshare company? Many people look to driving for ridesharing services to make some extra money or as their main source of income. However, before you start driving for Uber or Lyft, you need to understand what your insurance requirements are. In the event an accident happens while transporting a customer, you need to be sure you are covered. If you’ve been in an accident in an Uber or Lyft, the Nashville rideshare accident lawyers at Larry R. Williams, PLLC can help you with your case.

Does your regular policy cover rideshare operations?

Under Tennessee law, drivers are required to carry a minimum amount of liability car insurance to be legal on the roadways. The required minimum limits are:

  • $25,000 for each injury or death per accident.
  • $50,000 for total injuries or deaths per accident.
  • $15,000 for property damage per accident.

However, it is important to understand that rideshare insurance does not come standard in car insurance policies. Rideshare insurance is considered an add-on to a driver’s current policy. Rideshare insurance add-ons are known as Transportation Network Company (TNC) coverage policies.

Coverage provided by this additional insurance is similar to the coverage a person has for their personal car insurance policies. TNC covers property damage liability, bodily injury liability, MedPay, underinsured/uninsured motorist, comprehensive, and collision. This TNC coverage will kick in at varying levels based on the following three rideshare driving categories:

  1. When the app is activated and a driver is waiting for a passenger.
  2. When a driver has been matched with a passenger in his traveling to pick them up.
  3. When a driver has a passenger in the vehicle.

There are several companies that offer rideshare insurance coverage in Tennessee, including the following (subject to change):

  • State Farm
  • Geico
  • Progressive
  • USAA
  • Farmers
  • Erie

Rideshare insurance coverage is not very expensive, and it is well worth the investment if you will be transporting passengers as an Uber or Lyft driver.

Do Uber and Lyft provide insurance coverage?

Major rideshare companies like Uber and Lyft do provide insurance coverage for their drivers. However, their coverage is “tiered” based on what a driver is doing at the time an accident occurs, similar to the categories mentioned above.

  • If a driver is not signed in to the rideshare app for work, then any accident will be covered by the driver’s personal insurance coverage.
  • If a driver is signed into the rideshare app for work but does not have a passenger, then any accident they get into will first be covered by the driver’s personal insurance carrier. If the rideshare driver was at-fault, Uber or Lyft’s insurance coverage will kick in on a limited basis only if the driver’s personal coverage limits are exhausted, or a claim is denied.
  • If a driver is on the way to pick up a passenger or has a passenger in their vehicle at the time of an accident, Uber and Lyft both provide a $1 million liability insurance policy for anyone involved in the accident, regardless of who was at fault.

These incidents can be serious

Rideshare accidents or just like any other car accident. They can result in serious injuries for drivers and passengers. If you are considering driving for Uber or Lyft, please be sure that you understand all insurance requirements so that you are protected behind the wheel.