Therefore, in order to have coverage, TNC drivers need commercial insurance coverages–just like taxi and livery car drivers.
Commercial auto insurance policies generally carry higher liability limits. The reason most people choose not to do this or are worried is that there will be a change in policy and most people do not want to deal with that.
This is merely meant as contingency insurance in case the other driver has NO insurance! Lets take a look at when you are not covered at all by your personal policy. However, if you do have your own insurance policy, you are obliged to contact your insurance company first. That means you are responsible for all the damage to your car; you can try and claim it from your insurance company, but risk them denying your claim and dropping you from the policy.
As we have said earlier, we highly recommend getting rideshare insurance or atleast considering all eventualities before filing a claim. This limited liability coverage in Period 1 is what some insurance companies are now trying to combat/cover by offering Hybrid Rideshare Insurance! This is the huge risk you face when you are in Period 1.
Your car at that point stops being a personal vehicle and is now no longer covered by your personal policy to the minute the passenger exits the car and the App is turned off.
Since TNC (Transportation Network Company or basically rideshare company) drivers use their personal cars to give rides, they almost never have livery licenses that Limo/Cab companies have required their drivers to get. According to the Insurance Information Institute Insurers and insurance regulators are concerned about misconceptions regarding the use of personal auto policies by TNC drivers.
Like conventional taxicab companies, TNCs are commercial enterprises.So not only do you have coverage for personal use, you have the added level of protection for ridesharing; all for a competitive price.Once you purchase our policy, you no longer need your personal auto policy.Given that you are in Period 1 for a significant period of time, it only makes sense that you explore the insurance landscape to get better protected!According to Geico Ridesharing Insurance policy is a hybrid policy and will replace your existing personal auto policy.