Insurance gaps in rideshare coverage can leave accident victims undercompensated or without coverage entirely. Understanding where these gaps occur helps you identify all available insurance sources and avoid surprises when filing claims.

The Period 1 Gap

The most significant coverage gap occurs when drivers have their app on but haven't accepted a ride:

Personal insurance may deny claims: Most personal auto policies exclude commercial driving activity, including rideshare.

Rideshare coverage is limited: Only $50,000/$100,000 contingent coverage applies during this period.

No collision coverage: Vehicle damage isn't covered during Period 1 unless the driver has special rideshare insurance.

This gap can leave victims with inadequate coverage for serious injuries.

The Personal Insurance Exclusion Problem

Many personal auto policies now explicitly exclude rideshare activity:

Commercial use exclusions void coverage when the driver is using the vehicle for business purposes.

Rideshare-specific exclusions in newer policies specifically exclude Uber and Lyft driving.

Policy cancellation risk: Some insurers cancel policies entirely if they discover undisclosed rideshare activity.

Solutions for Coverage Gaps

Several options address rideshare coverage gaps:

Rideshare endorsements: Many insurers now offer add-ons to personal policies that cover rideshare activity during all periods.

Hybrid policies: Some companies offer policies specifically designed for rideshare drivers that provide seamless coverage.

Commercial policies: Full commercial auto insurance covers all driving activity but is expensive.

Impact on Accident Victims

Coverage gaps affect victims in several ways:

Insufficient coverage for serious injuries: Period 1 limits may not cover significant medical expenses.

Delays while coverage is disputed: Insurers may argue about which policy applies, delaying compensation.

Need to pursue multiple sources: Victims may need to file claims with several insurers to collect full compensation.

Identifying All Coverage Sources

When gaps exist, explore every potential source:

Driver's personal policy: Even if denial is expected, file to preserve rights and trigger rideshare contingent coverage.

Rideshare company coverage: Both contingent liability and any applicable excess coverage.

Your own insurance: UM/UIM coverage and med-pay from your personal policy.

Umbrella policies: The driver's homeowner's umbrella may provide additional coverage.

Protecting Yourself

As a passenger: Carry adequate UM/UIM coverage on your own policy to fill potential gaps.

As a driver: Purchase rideshare endorsements or hybrid coverage to eliminate gaps.

As an accident victim: Work with an attorney who can identify and pursue all available coverage sources.