Personal auto policies generally contain a livery or public conveyance exclusion — they do not cover carrying passengers or goods for compensation. Rideshare and delivery driving falls squarely inside it.
Platforms provide their own coverage, but it applies in phases, and the phases do not always align neatly with the personal policy.
The phases
| Phase | What you are doing | Usually responds |
|---|---|---|
| 0 | App off, personal driving | Your personal policy |
| 1 | App on, waiting for a request | The gap. Platform liability is typically limited; your personal policy may exclude |
| 2 | Request accepted, driving to collect | Platform coverage, usually higher limits |
| 3 | Passenger or order on board | Platform coverage, usually highest limits |
Phase 1 is the problem. The app is on and you are available, but no job is assigned. Platform coverage in this phase is typically liability only, at limits often lower than phases 2 and 3, and frequently with no coverage at all for damage to your own vehicle. Meanwhile your personal policy may treat the app being on as commercial use.
What platform coverage usually does not include
- Damage to your own vehicle in phase 1. Commonly excluded entirely.
- Comprehensive and collision in phases 2 and 3 unless you carry those coverages on your personal policy. Many platforms condition their physical damage coverage on you having your own.
- A low deductible. Platform physical damage deductibles are frequently far higher than personal ones.
How the gap is closed
Two products exist.
A rideshare endorsement on your personal policy. Widely available, generally inexpensive, and it extends your personal coverage into phase 1. Availability varies by insurer and state, and not every insurer offers one.
A commercial auto policy. More expensive and usually reserved for people driving substantial hours or operating a delivery business rather than driving occasionally.
Delivery is not always the same as rideshare
Some insurers treat food or package delivery differently from passenger rideshare, and a rideshare endorsement does not always extend to delivery. If you do both, or only delivery, confirm specifically which activities the endorsement covers.
Delivery for a restaurant or store using your own vehicle is a different arrangement again, and whether the employer's coverage responds is worth establishing before you start.
What happens if you do not tell your insurer
The exclusion applies whether or not you disclosed the activity. In an accident while driving for hire, a personal policy without a rideshare endorsement is likely to deny.
Beyond the individual claim, an insurer that discovers undisclosed commercial use may treat it as a material misrepresentation, with consequences for the policy as a whole.
Questions to settle before driving
- Does my insurer offer a rideshare endorsement, and does it cover the platforms I use?
- What are the platform's limits in each phase, and what is the physical damage deductible?
- Does the platform's physical damage coverage require me to carry my own comprehensive and collision?
- Does the endorsement cover delivery as well as passengers?
- What happens to my personal claims history if a platform claim occurs?
What we are not saying
We are not telling you to buy an endorsement or a commercial policy, and we do not sell either. What we are saying is that personal policies generally exclude driving for hire, that phase 1 is where coverage is thinnest on both sides, and that the exclusion applies regardless of whether the activity was disclosed.
Where to verify this yourself
- Your policy — the livery or public conveyance exclusion.
- The platform's insurance page — limits and deductibles by phase.
- Your insurer — whether a rideshare endorsement is available and what it covers.
- Your state Department of Insurance — state rules on transportation network company coverage.
This is general education, not advice. Insurance law and claim rules vary by state and change over time. Nothing here is legal, financial, or insurance advice for your situation, and reading it does not create any professional relationship. For your specific case, consult a licensed professional in your state or contact your state Department of Insurance.