If you are a driver for a Transportation Network Company (TNC) – also known as a ride-sharing service – such as Uber or Lyft, you may think you have a smooth road ahead of you when it comes to insurance coverage, but unless you know the facts, you could be in for a bumpy ride. Currently, personal auto insurance policies DO NOT provide coverage for TNC drivers. Unfortunately, many policyholders are unaware of this gap, thus exposing themselves to a potentially rough ride in the event of an accident.
To better explain the “road map” for TNC drivers, insurance carriers have broken down the process into three periods and defined the coverage in each period:
Period #1: The TNC application is turned on and the driver is waiting to receive a “ping” connection/pick-up request. (This is where the coverage Gap exits, as this period is specifically excluded by Personal Auto Insurance and is not covered by the TNC’s Commercial policy.)
Period #2: Driver has received a “ping” connection/pick-up request and is in-route to pick up passenger(s). Coverage is now provided by TNC’s Commercial policy. (This Period is specifically excluded by Personal Auto Insurance.)
Period #3: TNC driver has passengers in the vehicle. Coverage is now provided by TNC’s Commercial policy. (This Period is specifically excluded by Personal Auto Insurance.)
An estimated 500,000 drivers have joined a TNC, with 100,000 in California alone. This explosive growth has prompted PVI, in conjunction with our insurance carriers, to not only inform and educate our customers about the potential for loss, but also to provide coverage by adding an endorsement to your current policy. If you are a driver for a TNC – or would like more information on auto insurance in general – contact our office today! We’ll happily help you avoid the potholes of gap coverage and insure a smooth ride!