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Rideshare Insurance Information

Rideshare insurance provides essential protection for people who work with rideshare or food delivery services, such as Uber, Lyft, Grubhub and DoorDash. This type of coverage is generally not available as a standalone insurance policy. Instead, it is usually purchased as an addition to an existing auto insurance policy and provides coverage for a driver using their vehicle for one particular commercial use.

The insurance experts at ACF Insurance Services make it their business to ensure rideshare drivers in the Raleigh and Garner areas are adequately protected by their insurance policies and can help you acquire coverage suitable to your specific needs.

What Is Rideshare Insurance?

Today’s service economy has caused an explosion in the ridesharing industry. Numerous companies have made it possible for drivers to use their own cars to transport people and materials for a fare.

When driving for a rideshare company — such as Uber® or Lyft® — you are operating your vehicle commercially. Therefore, you’ll need your car insurance to address operating risks related to such activities. A rideshare car insurance policy can will help you gain this coverage. Coverage can insure you both during your personal and business driving.

Is Rideshare Insurance Necessary?

Personal car insurance won’t cover you while you drive for business. As soon as you open the rideshare app and start work, your standard coverage might not apply. That is a big gap you cannot afford.

However, if you get rideshare insurance, you’ll essentially be able to extend most or all of your personal coverage throughout the periods when you drive for the rideshare. Coverage can apply to you while:

  • Driving personally, or when you are in app-off mode
  • Waiting for a rider, in app-on mode
  • Driving to pick up a rider (app-on mode)
  • Carrying the rider and waiting for another call

Do Rideshare Companies Offer Insurance?

Rideshare companies do offer certain types of auto insurance. Still, these options will only provide limited coverage.

  • Policies will likely only cover you during the times that you are driving app-on.
  • If you do not have a rider, but are still app-on, the policy might only provide limited coverage.
  • The coverage limits provided by the rideshare company’s insurance might not offer you enough liability or physical damage protection for your own needs.

How Does Rideshare Insurance Work?

Don’t run the risks posed by carrying only the coverage offered by the rideshare. Rather, a personalized rideshare policy will address specific driving risks you face behind the wheel. Policies can offer:

  • Liability Coverage that pays for the harm you cause others, such as other drivers or your passengers.
  • Collision Insurance for damage your vehicle sustains when wrecks occur.
  • Comprehensive Insurance, which covers non-accident damage to your vehicle, such as damage from severe weather or theft.
  • Uninsured/Underinsured Motorist Coverage for times when other at-fault drivers cause you harm but lack the appropriate liability insurance to cover your losses.

By getting coverage, you’ll receive ample protection throughout the time that you are at work. All coverage requirements set by North Carolina’s law will apply during app-on and app-off periods.

Why is Rideshare Insurance Important? 
Having a personal auto insurance policy is not enough for rideshare drivers and should not be relied upon for coverage. In fact, most standard auto policies do not provide protection for incidents occurring while a vehicle is used for commercial purposes. As such, additional coverage is needed as soon as a car is utilized for income.

Although some rideshare companies do provide coverage for bodily injury or property damage in certain situations, drivers may still face consequences, such as:

  • Damages suffered while not working—Although Uber and Lyft provide some coverage while picking up or transporting a customer, you will be on your own if an accident occurs while you are parked between rides.
  • High deductibles—Even if you are covered by your company when an accident occurs, these policies may have particularly high deductibles. This means you will have to pay a significant amount out of pocket before company coverage will provide assistance.
  • Loss of personal coverage—Rideshare drivers who do not inform their personal auto coverage provider could have their policies canceled following an accident.
  • Higher premiums—If you do lose your personal auto insurance policy, it’s likely that getting re-insured will be significantly more expensive and the resulting cost difference will outweigh what the addition of rideshare coverage would have been in the first place.

Why Choose ACF Insurance?

Since 1991, ACF Insurance Services has provided drivers throughout greater Raleigh with targeted insurance coverage, supported by customer-first service.

We fully understand that you might not know exactly what type of rideshare insurance you might need. We’ll make it easy for you. Our team can compare plan costs and coverage options across multiple providers, to lead you in the right direction to get you the coverage you need at an affordable price.

Ready To Get Started?

Contact us today for a fast, free rideshare insurance quote. You can start online or over the phone.

  • You may also reach us at our South Raleigh/Garner location at (919) 661-1100.

We can get you a quote very quickly, and we will do all the legwork for you.

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