If you drive for Uber, Lyft, UberEats, UberEats or Doordash then you need to start thinking about your auto insurance. Ridesharing services (such as Uber and Lyft) and food delivery services (like UberEats and Doordash) have evolved into a popular way for people to supplement their income. However, often people forget to consider the insurance implications.
Will my normal auto insurance policy cover me?
With your normal auto insurance you DO NOT HAVE COVERAGE while you are delivering/driving for any of these kind of companies. From the moment you accept a ride, until it is completed your normal private passenger auto insurance will not cover you. HOWEVER, there is an endorsement that most carriers have called “Transportation Network Company” or “TNC” endorsement that will extend coverage to you and your vehicle while you are in transit with a delivery/ride. With some insurance companies a TNC endorsement can be expensive, while with others it’s just pocket change to add.
If you are employed as a food delivery employee for a restaurant (such as Jets, Domino’s, Jimmy John’s, etc) then while you are on the clock and delivering, then the company’s insurance should extend to you. We HIGHLY recommend, before making any deliveries, that you verify with your employer that its insurance coverage will extend to you while on the clock, because most likely your personal auto insurance policy will not cover you in this situation.
Aren’t I already covered by the rideshare or the food delivery service?
It is true that some rideshare and food delivery services do provide SOME insurance coverage in limited circumstances and usually with much higher deductibles than you may have with your personal auto insurance policy. For example Uber explains the following on its website:
“Although Uber maintains commercial auto insurance on your behalf while you’re online on the Driver app,* expanding your personal auto insurance to include rideshare and delivery insurance coverage could help protect you even more. Some of the insurers in your state will also match your lower personal coverage deductible when you purchase comprehensive and collision coverage, which can get you back on the road quicker.”
Similarly DoorDash explains the following on its website:
“DoorDash provides auto insurance for Dashers, but this insurance applies only to accidents while using a motor vehicle on an active delivery (from order acceptance heading to the Merchant or from Merchant to the Customer). This insurance applies only after the Dasher goes through their own auto insurance policy first.”
Here is the tricky part, if someone is driving for these companies without a TNC endorsement, then he or she run the risk of being cancelled from their personal auto insurance provider, because many personal auto insurance providers require that the person have a TNC endorsement. For example let us say a person has a Progressive auto insurance policy and starts driving for Uber without a TNC endorsement. If he gets into an accident while driving for Uber, he might be covered under Uber’s insurance policy. However he will most likely have a much higher deductible to pay under Uber’s insurance policy than he would have from his personal auto insurance. Also if Progressive finds out that he has been driving for Uber without getting a TNC endorsement it can cancel his auto insurance policy.
Further, many rideshare and food delivery services do not provide any medical coverage. In that situation, without the TNC endorsement, if you get into an accident while driving and you are injured you might have no coverage for your medical bills!
How can I get a TNC endorsement?
Fortunately, to meet the growing demand of people trying earn extra income with ridesharing and food delivery services, many insurance companies have begun to offer TNC insurance (often referred to as rideshare insurance) as an add on to personal auto insurance policies.To get a TNC endorsement tell your insurance agent that you drive for these services in your personal car. So for slight increase in your auto insurance premium, you can be sufficiently covered for the personal use of your vehicle as well as when you are using it to drive for others.
Call E&Y Agency, LLC at 248-362-1313 or fill the form below and we will be happy to provide you with options to supplement your insurance with a TNC endorsement.
