Tom's Blog
If you are currently an Uber/Lyft driver or thinking of becoming a “rideshare” driver, you need to know some basic things concerning how the car insurance works during the drive service. If you are considering working full-time or part-time as a N.C. rideshare driver, you need to know that your standard N.C. auto insurance policy excludes “livery” which means if you are picking up people to transport for a fee, no coverage exists; however, the good news is that NOW there are options available for car insurance for Uber and Lyft drivers, when there was previously none.
Requirements to Be an Uber or Lyft Driver
First of all for those of you considering becoming an Uber or Lyft driver, you need to know what it takes to become one. Below are the requirements:
- Must be 21 years old or older
- Own a vehicle that is 2001 or newer, with 4 doors
- Must have a valid U.S. driver’s license
- Must have at least one year of U.S. driving experience if 23 years old or older; however if under the age of 23, you must have at least 3 years of experience
- Provide proof of social security number, current car insurance, and registration
*Keep in mind that if you have had a DUI, been charged with driving without valid drivers license or insurance, charged with a fatal car accident or reckless driving, have a criminal history in the last 7 years, you will not qualify to become a “rideshare” driver.
Requirements for Vehicles to Qualify as an Uber or Lyft Car
Next, if you are a prospective driver for Uber or Lyft, you need to make sure your car will qualify. Below are the minimum requirements, however, there are other categories, depending on your auto, such as UberX, UberXL, and UberSELECT.
Your car must be:
- 2001 or newer
- No cosmetic damage
- Heat/AC, windows must be operable
- Current N.C. license plate
- Pass N.C. inspection
The 3 Periods of Coverage for Uber and Lyft Drivers
Now, we can talk insurance assuming that you and your auto have qualified and you are an official rideshare driver. Before you can understand the insurance, you must first understand the different distinct periods of driving for Uber or Lyft. They are categorized below:
Period 1 is the time that you turn on the Uber or Lyft App, but have not yet accepted any trips. This is the period you should be concerned with since Uber/Lyft only offers insurance for periods 2 and 3. In the past, period 1 exposed you to a coverage gap. Now, the good news is that for Period 1, you can have the coverage of liability and physical damage added back, where it once was excluded, by adding a rideshare endorsement to your N.C. auto insurance policy.
Period 2 is when you have formally accepted a trip and are en route to pick up your customer.
Period 3 is when the passenger is in your car and you are transporting them to their destination.
*For Periods 2 and Period 3, Uber or Lyft will provide coverage for you; however it is wise to review the coverage they provide on a routine basis. Deductibles do apply.
Contact Us Today for a Quote
Contact our offices today at 866-869-3335 to make an appointment to review your Uber or Lyft coverage options. Please make sure you bring the following:
- Year, make, and model of all of your vehicles
- Name, driver’s license, social security # of all drivers in your home
- Driving records or auto accident reports for each driver
- Current N.C. auto policy
With an average cost of rideshare insurance coverage being approximately $685 a year, it breaks down to an average of $57 per month. This is a small price to pay for the coverage you need as an Uber or Lyft driver for Period 1. Don’t wait! Call TODAY!
