Uber and Lyft drivers- this one's for you!
UPDATE: January 2016... Farmers insurance now offers rideshare coverage! Call us now at Joe's Insurance (480) 940-0909. See our announcement.
You have a Period 1 Problem.
Your Volvo is only a couple of years old, so you've got quite a few car payments ahead. But hey, no problem. You're making money driving for Uber in Arizona. So car payment problem solved.
Or is it?
How's your insurance?
Yes, you've heard right... Uber will cover you while you are on the way to pick up a rider, and of course while you are driving them from point A to point B. Rideshare companies call these times Period 2 and Period 3. And they provide some coverage for it. But what about Period 1?
Uber & Lyft do not cover you during Period 1 in Arizona.
What? Really? Yes, really. Period 1 is the time between when you sign on to the app, and when you are matched to a driver. That's your exposure zone. No coverage. None. Nada.
Here's an example:
You're driving your beautiful Volvo near all the upscale hotels in downtown Phoenix. You're ready to make some money, so you turn on your app. While you are waiting on a "match" you turn up the tunes on your iPhone and smile. It's going to be a good night. Suddenly you are jolted out of the tunes and into a bad rest of the night. You've just hit another car. It came out of nowhere. And suddenly it's not such a good night.
But you think, hey... I've got insurance. Think again.
You were signed on to your app, but not yet matched to a rider. That's a no man's land in the insurance world. Your rideshare company doesn't cover you during that time... and neither does your personal insurance policy.
You. Were. Not. Covered.
Now you're facing a lawsuit from the person you hit, in addition to having to pay out of pocket for repairs to your car. Aren't you glad this is only a hypothetical example?
Farmers to the rescue!
You can come out of the shadows now, and proudly tell your insurance company...
"Hey! I'm a rideshare driver."
Call me today. I'll make sure you are covered "end-to-end" after January 4.