Commercial Auto Insurance for Rideshare and Delivery Services: What You Need to Know

Operating as a rideshare or delivery driver in North Carolina requires a clear understanding of the state’s insurance requirements to ensure adequate protection on the road.

Personal Auto Insurance Limitations

Standard personal auto insurance policies typically exclude coverage for commercial activities, including ridesharing and delivery services. Engaging in these activities without appropriate coverage can lead to denied claims or policy cancellations.

Rideshare Company-provided Insurance

Companies like Uber and Lyft offer insurance coverage that varies depending on your status in their app:

• Period 0—Your app is off, so your personal auto policy may apply.

• Period 1—Your app is on, awaiting ride requests, so the company may provide limited liability coverage.

• Periods 2 and 3—You are en route for picking up or transporting passengers, so higher liability coverage may be in effect.

However, these coverages may have limitations and might not fully protect you in all scenarios, so speak to an insurance specialist.

North Carolina Insurance Requirements

North Carolina mandates certain minimum levels of auto liability insurance coverage for bodily injury per person, per accident and for property damage; however, these levels may be insufficient for serious accidents. For rideshare and delivery drivers, insurers would likely recommend higher limits due to increased exposure to risk.

Rideshare Insurance Options

Consider the following options to bridge coverage gaps:

• Rideshare endorsements—Some insurers offer policy add-ons that extend coverage during rideshare activities.

• Commercial auto insurance—This may provide comprehensive coverage for business use of your vehicle, ensuring protection across all periods of rideshare or delivery operations.

Selecting Appropriate Coverage

When choosing insurance, evaluate the following:

• The extent of coverage—Make sure it encompasses all phases of rideshare or delivery activities.

• Deductibles and premiums—Balance affordability with adequate protection.

• Policy exclusions—Be aware of any limitations that could affect your coverage.

Consulting With Insurance Professionals

Talk to an expert to safeguard your financial interests and ensure compliance with state laws. Contact Davis Insurance Group today to learn more.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.