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American Risk Management

Auto Insurance When Operating for a TNC

Driving for a Transportation Network Company (TNC) such as Uber or Lyft can present some unique challenges when it comes to auto insurance. Working for them is different than operating a traditional taxi or limousine in that those drivers are licensed and typically carry a commercial vehicle insurance policy. Obtaining such coverage may not be economical for the standard TNC driver.

According to American Risk Management, most personal auto policies state exclusions in coverage when the owner is receiving money for driving services. This creates a potential gap in insurance when using your vehicle for rideshare duties.

Where Gaps Exist

The business model of being a rideshare driver presents dynamic periods of activity. This is where TNC/ridesharing insurance becomes essential. Even if you don’t have a customer in the car but are actively seeking one, your personal auto policy is likely not in effect. It has become understood that these three timeframes define operating in this model where coverage is needed:

  1. The driver has a rideshare app on but has not accepted a passenger.
  2. The driver has accepted the request and is en route to pick up.
  3. The passenger is physically in the vehicle.

Property damage and liability claims can be costly in any motor vehicle accident. If you are operating for a TNC, it is important that you understand the insurance protection needed in all situations.