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If you’ve seen our recent video on Uber and Lyft, you’ll be aware of the risks of driving for those companies (or being a passenger, for that matter) since your standard auto insurance doesn’t cover ‘drive for hire’ situations.

These Transportation Network Companies (TNCs, eg Uber and Lyft), provide some of their own coverage while you’re transporting passengers.

However, as a recent article by Safeco states, “nearly every carrier’s auto policies exclude coverage for incidents that occur when a personal vehicle is used to transport paying passengers, such as during ridesharing.”

This exclusion also includes the time your TNC app is on and you are ready to transport riders.

This creates a TNC coverage gap: your app is on and you are ready to transport riders so your standard auto insurance is suspended but you are not actually transporting a customer so your TNC coverage doesn’t apply.

As a result of this gap, Safeco, one of partner providers, now offers Rideshare Coverage. This coverage extends your auto policy for a modest additional amount (the specific cost depends on your specifics otherwise we’d list it here) and will close this gap.

Are you an Uber or Lyft driver and interested in learning more? Let us know?

Post Author: Steve Sarantos

Steve Sarantos spent his first 20 years after education, working in the auto industry, retail, and importing from the orient. Most of the positions were sales, or negotiating with vendors, which gave him a wealth of experience working directly with people and what it takes to make things work for both parties.
When he decided to go into business for himself, insurance seemed like the perfect venue. Help people with something most knew very little about, get the right product for the right price. Everyone has to have it in or form or another, so all you have to do to be successful is be honest, keep your promises, and offer people what they want. Someone to talk to about insurance that will give them choices and straight talk.
After starting Reliable Insurance Network from scratch in 1996, it is now a thriving family business with clients in MN, WI, and AZ. Reliable Insurance Network continues to refine it's processes, use technology to stay flexible, and let clients work with them in whatever way is comfortable for them, and provide top companies and rates along with superior service so everyone is happy.