On-demand transportation services like Uber and Lyft are rapidly changing the way people drive and move from point A to B. Every day, more drivers and riders are taking advantage of the convenience that Transportation Network Companies (TNC) have to offer – a simple way to make money for drivers, and transportation with just the click of a button for riders.
But as a ride-share driver, are you and your vehicle adequately covered by your current auto insurance policy in case of an accident? TNC Endorsement through Progressive is now available to provide increased coverage for vehicles used for ride-sharing.
What’s Covered By Your Auto Insurance Policy?
When you’re offline from your ride-share app, your personal auto policy applies to cover potential accidents. But when you’re using your vehicle for commercial purposes such as transporting people or belongings in exchange for payment, most personal car insurance policies will not provide the coverage you need.
Depending on your specific personal auto insurance policy, you’re covered for:
- Collision – accidents involving another vehicle.
- Comprehensive – damage to your vehicle due to circumstances such as theft, hail, fire, vandalism or hitting an animal.
- Liability – bodily injury and property damage.
- Uninsured and underinsured motorist – accidents involving a driver without insurance or sufficient insurance.
What’s Covered By Your Transportation Network Company?
Your TNC policy typically applies only once you’ve accepted a trip from a passenger and while you’re on the trip – providing you with collision and comprehensive coverage. This policy can have a high deductible that can leave you with significant out-of-pocket expenses in case of a collision.
You also have a gap in coverage when you’re logged onto the ride-share app and waiting for a passenger match. When you’re waiting to connect with a new passenger, your TNC might not offer the coverages and limits you need, and your personal policy may have exclusions that apply to the commercial use of your vehicle.