{"id":5703,"date":"2021-06-08T11:02:05","date_gmt":"2021-06-08T18:02:05","guid":{"rendered":"https:\/\/www.costulessdirect.com\/?p=5703"},"modified":"2023-11-06T21:13:46","modified_gmt":"2023-11-06T21:13:46","slug":"rideshare-insurance-in-california","status":"publish","type":"post","link":"https:\/\/www.costulessdirect.com\/blog\/rideshare-insurance-in-california\/","title":{"rendered":"What to Know About Rideshare Insurance in California"},"content":{"rendered":"\n
Do you have a side hustle that earns you extra cash each month, or are you all in for the Gig Economy in the Golden State? If you take people to their destinations or deliver meals<\/a> or other goods, looking into rideshare insurance, along with its cost and benefits, would be well worth your time.<\/p>\n\n\n\n So, whether you drive for Amazon or help others carpool through Uber or Lyft, learning more about how rideshare insurance works in California is quite helpful for giving you extra peace of mind and extra backup coverage.<\/p>\n\n\n\n Rideshare insurance bridges the gap in coverage between the commercial policy that\u2019s provided by the company you work for and your own personal auto insurance policy<\/a>. In fact, Transportation Network Company drivers in California are required to have rideshare insurance once their rideshare app is activated and they start accepting requests. For the most part, the company provides this coverage. Nonetheless, a personal rideshare insurance policy is something that drivers would also want to purchase on their own\u2014just in case\u2014instead of never having it and running into a situation where they need the extra coverage to prevent financial disaster.<\/p>\n\n\n\n If you drive for a transportation network carrier (TNC), like Uber or Lyft, you will need rideshare insurance in California. Also, you should consider looking into adding this type of coverage if you drive for an on-demand delivery company like Grubhub, Instacart, or Amazon Flex.<\/p>\n\n\n\n On the one hand, some TNC\u2019s claim to have adequate insurance coverage for their drivers. For example, Uber boasts of a million-dollar policy. The California Public Utilities Commission<\/a> actually mandates that these entities carry a million-dollar primary commercial insurance. However, drivers are covered only under certain conditions, which means that this liability insurance policy kicks in once the app is activated, and the driver accepts the passengers\u2019 requests. At that point, the company covers both the driver and passenger to the limits of their commercial policy.<\/p>\n\n\n\n First off, the coverage of the insurance depends on which period or status the app is in. These four periods include:<\/p>\n\n\n\n Each period has its own specific coverage. In other words, in California, a driver who becomes familiar with this information would know exactly which type of coverage pertains to each scenario when the app is active or inactive.<\/p>\n\n\n\n Requirements in Period 0 cover $15,000 worth of bodily injury per person, $30,000 per accident, and $5000 of the property damage sustained during an accident. However, since the app isn\u2019t active and you\u2019re using your vehicle for personal use, your policy will provide the necessary coverage<\/a>.<\/p>\n\n\n\n In Period 1, the requirements are $50,000 bodily injury liability coverage per person, $100,000 per accident, and $25000 of property damage liability coverage per accident. Again, the company doesn\u2019t cover you in this phase.<\/p>\n\n\n\n In this situation, both the company\u2019s $1 million liability insurance policy and the rideshare insurance of your choice will cover you. While the company\u2019s insurance would be the first to cover damages and injuries, your rideshare insurance from your personal policy would pick up the additional amounts beyond the limits of the company\u2019s coverage.<\/p>\n\n\n\nWhat Exactly if Rideshare Insurance?<\/h2>\n\n\n\n
Specifically, Which Drivers Need Rideshare Insurance in California?<\/h2>\n\n\n\n
Do the Companies Insure their Drivers?<\/h2>\n\n\n\n
How Does the Coverage Work?<\/h2>\n\n\n\n
\n
Coverage in Period 0<\/h3>\n\n\n\n
Coverage in Period 1<\/h3>\n\n\n\n
Coverage in Period 2 & 3<\/h3>\n\n\n\n
Can a Driver Get Their Own Rideshare Insurance in California?<\/h2>\n\n\n