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By now you may have heard of ridesharing mobile apps like Uber and Lyft.  Many people are finding this to be an attractive way to make some extra cash.  The concept is you register to be a driver and if you qualify, download an app and voila! You’re in business.  Simple right? 

Well….it’s not so simple when it comes to your auto insurance.  While the Transportation Network Companies (TNC) may provide their drivers with some coverage, it’s only while passengers are in the vehicle.  A serious coverage gap exists while the app is running but no passenger has requested a ride. Even when coverage is present from the TNC, the coverage limits may be much lower than one would expect.

Most personal auto policy will not cover a claim while using a car to deliver goods or people for a fee because this is a commercial exposure and should be insured by a commercial auto policy.  Many insurance companies have responded to the rideshare dilemma.  Here’s how our personal auto carriers handle Uber and Lyft exposures.


Damage to Your Auto and Liability Coverages

Additional Information Needed


Not covered – a commercial auto policy is needed.



Not covered – a commercial auto policy is needed.



Can be covered on a personal auto policy with “Business” use rating. Otherwise, not covered.



Coverage will extend while the app is running and no passenger is in the car.

How often does a person drive for a TNC?

How many miles driven for TNC?

Number of miles driven overall?

Who in household is driving for TNC?

How many TNCs are they driving for?

Does the driver have another occupation/student?



Not covered – a commercial auto policy is needed.


Want more information?  Just give us a call!

Maggie Nessim
Faller Insurance Agency

Posted 2:22 PM

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