Rideshare insurance gaps: how your coverage changes from app off to passenger aboard
Which coverage applies in each phase of a rideshare shift and how to fill the gaps
Safety Behind the Wheel Foundation built this guide from National Association of Insurance Commissioners (NAIC) guidance, the California, Washington, New York and Texas insurance regulators, state rideshare laws, National Highway Traffic Safety Administration (NHTSA) data and published research. Every source is listed at the end.
Why the exact minute of a collision matters
Picture two collisions at the same corner. In one, the ride app is closed. In the other, it is open and you are waiting for a request. The damage can be the same. The insurance that responds may not be.
Ride apps are run by what state laws call transportation network companies, or TNCs. A TNC connects riders with drivers who use their own cars. Insurance regulators split a TNC driver’s time into phases, often called periods [1]. The coverage in force, and its limits, depend on which phase you were in when the accident happened [1].
This matters for safety, not just paperwork. A gap can leave an injured rider or your own family waiting on medical bills. It can leave you without a car to reach work or treatment, or push you toward a cheap repair that leaves safety systems unchecked.
Collisions are not rare in this work. In a 2024 survey study of 276 U.S. rideshare drivers, one in three said they had been in a work related crash [7]. The drivers were not a random sample, so this is not a national rate. Still, it is a good reason to sort out coverage early.
The four phases of a rideshare shift
Start with one question: what was the app doing? Regulators describe three app on periods [1]. Add the time the app is off, and you get four phases.
- App off. You are driving for yourself. No rideshare coverage is in play.
- Period 1: app on, waiting. You are logged in and available, but you have not accepted a request [1].
- Period 2: en route. You have accepted a request and are driving to the pickup, with no rider in the car yet [1].
- Period 3: passenger aboard. The rider is in your car until they get out [1].
State laws use slightly different words. In Washington, a ride starts when the driver accepts a request and ends when the passenger leaves the car [8]. New York’s rules also end a trip when the last rider leaves the vehicle [5].
Comparison compiled by Safety Behind the Wheel Foundation
Coverage that usually leads in each rideshare phase
| Phase | What is happening | Coverage that usually leads |
|---|---|---|
| App off | Personal driving | Your personal auto policy |
| Period 1 | Logged in, waiting for a request | TNC or driver coverage at lower limits [1] |
| Period 2 | Ride accepted, heading to pickup | TNC coverage, often $1 million liability [1] |
| Period 3 | Rider in the car | TNC coverage, often $1 million liability [1] |
Period 1 causes the most confusion. You are not giving a ride, yet you are not off duty, and limits are lower.
Why your personal policy may step back
Most personal auto policies are written for everyday driving. Texas’s insurance department lists accidents while driving for a ride hailing service among the things most policies don’t cover [2]. The National Association of Insurance Commissioners (NAIC) is the group of state insurance regulators. It says personal policies typically exclude business use or times when a driver is available for hire [9]. California’s insurance department calls this a “livery” exclusion, which means driving for hire [4].
That exclusion can reach further than liability. The NAIC notes it can affect personal injury protection in no fault states, comprehensive, collision and uninsured or underinsured motorist coverage [1]. Here is what those terms mean:
- Liability pays for harm you cause to other people and their property.
- Personal injury protection (PIP) pays some medical bills and lost pay, no matter who caused the accident. Some states, often called no fault states, require it.
- Collision and comprehensive, often called physical damage coverage, pay to fix your own car.
- Uninsured and underinsured motorist (UM/UIM) coverage helps when the other driver has no insurance or too little.
Some state laws give personal insurers clear room to step back. Washington lets insurers exclude any and all personal coverage, from liability to collision, while a driver is logged in or giving a ride [3]. Insurers that use this exclusion have no duty to defend or pay those claims [3].
What state rideshare laws require: the national pattern
Nearly every state now has rules for TNC insurance. As of this October 2026 review, the newest NAIC summary (updated October 2023) counted at least 51 states and territories with TNC coverage laws [1]. The NAIC describes a model framework for these laws, and the National Conference of Insurance Legislators adopted a model act based on it [1].
Under that framework, Period 1 primary liability must be at least $50,000 per person and $100,000 per accident for injuries, plus $25,000 for property damage [1]. Once a ride request is accepted, primary liability must be at least $1 million [1]. “Primary” means the policy pays first, before any other insurance.
Note the big jump between Period 1 and Period 2. Also note that these laws focus on liability, which protects other people. Coverage for your own car and injuries varies far more.
Three state examples
State rules share a shape but differ in the details. Here are three states, as described by their laws or regulators.
Comparison compiled by Safety Behind the Wheel Foundation
Rideshare insurance rules in three states
| State | Logged in, waiting | Ride accepted until rider leaves | Your own car |
|---|---|---|---|
| California | $50,000/$100,000/$30,000, plus $200,000 excess [10] | $1 million liability [10] | TNC not required to cover it [4] |
| Washington | $50,000/$100,000/$30,000, plus UIM and PIP [3] | $1 million, plus PIP and $100,000/$300,000 UIM [3] | If TNC coverage pays, the check goes to the shop or to owner and lender [3] |
| New York (outside NYC) | $75,000/$150,000/$25,000, plus UM and no fault [5] | $1.25 million, plus $1.25 million SUM and no fault [5] | Not required by state law [5] |
California
California’s TNC insurance law, Assembly Bill 2293, took effect on July 1, 2015 [10]. It added a $200,000 excess layer in Period 1 [10]. Excess coverage pays only after the first layer is used up. When the law began, the state insurance department said TNCs did not provide comprehensive and collision coverage unless drivers bought it on their own policies [10]. The department has also told drivers that TNCs are not required to carry medical payments or UM/UIM coverage [4].
Washington
In Washington, the required coverage can come from the TNC, the driver, or both [3]. If the driver’s policy does not pay for any reason, including a lapse, the TNC must cover the claim from the first dollar [3]. TNCs must warn drivers in writing that their personal policy might not include liability, PIP, UIM, comprehensive or collision coverage while they use the app [3]. The same notice tells drivers with a car loan to inform the lender [3].
New York
New York’s TNC insurance law applies only to trips that start in the state outside New York City [5]. TNCs must keep a group policy at all times, and it must pay from the first dollar if the driver’s own coverage does not [5]. The law does not require coverage for damage to the driver’s own car [5]. A driver’s personal policy may also exclude coverage, including no fault, while the driver is logged in [5].
Where the gaps usually hide
Check these weak spots every time.
- Period 1 limits. Lower limits while you wait may not be enough after a serious injury crash. An excess layer, where your state requires one, helps only up to its amount [10].
- Your own car. In some states, the law does not require the TNC to fix the driver’s car [4, 5].
- Your own injuries. Your personal PIP or medical payments coverage may exclude TNC use [3, 5]. Washington and New York require PIP or no fault in TNC coverage, but California does not require medical payments coverage [3, 4, 5].
- Your car loan or lease. Rideshare use may break the terms of a car loan [3]. Ask your lender or leasing company before you start.
- The drive home. If the app stays on after your last drop off, you are back in Period 1. If you switch it off, you are driving for yourself.
- Two apps at once. If you stay logged in to more than one app, ask each company and your insurer how they handle that crash.
Ways to close the gap
The NAIC says several insurers offer endorsements and broader policies to fill rideshare gaps [1]. An endorsement is an add on that changes what your personal policy covers. Some newer products let drivers switch quickly between personal and commercial coverage [1].
California’s insurance department notes that drivers can buy coverage for business use, including TNC driving [11]. It has also said some drivers may need a commercial policy to be sure their car, their injuries and UM/UIM claims are covered [4].
Not every product covers every phase. A California chart of products for TNC drivers showed some that covered only the app on waiting period and others that covered all three periods [6]. Collision and comprehensive applied only if the driver chose to buy them on the personal policy [6]. Washington’s regulator adds that gig workers should talk with an agent or broker before they start [12]. Safety Behind the Wheel Foundation gives rideshare drivers the same advice.
A step by step coverage review
Do this review before your first shift and again each year at renewal.
- Find your declarations page, the summary page of your policy. List each coverage and its limit.
- Read the exclusions. Look for words like “livery,” “for hire,” “public conveyance” or “transportation network.”
- Open the TNC’s insurance summary for drivers. Note the limits for each phase and any deductible for your own car.
- Look up your state’s TNC rules on your state insurance department’s website.
- Call your insurer or agent and say you plan to drive for a TNC [9]. Ask what changes and what it will cost.
- Save copies of everything in a folder you can open from your phone.
If a collision happens during a shift
Safety comes first. Check for injuries, call 911 if anyone is hurt, and move to a safe spot if you can. Then build the record.
- Take a screenshot of the app before you close it. It shows whether you were waiting, en route or carrying a rider.
- Report the accident in the app and to your own insurer, even if you expect the TNC’s coverage to pay.
- Note the trip time, the pickup point and the rider’s name as it appears in the app.
- Collect the usual details: other drivers, plates, insurance, witnesses, photos and the police report number.
In Washington, the TNC must give other insurers the exact times the driver logged on and off that day, within 10 business days of a request [3]. For the claim steps that follow, see Making sense of your insurance coverage after a serious car crash.
Safety habits that also protect your coverage
The best claim is the one you never file. Rideshare work brings screens, tight schedules and long shifts.
Phone use is the obvious one. NHTSA counts using a navigation system as a form of distraction [13]. In 2024, 3,208 people were killed in crashes involving distracted drivers [13]. Set up the route before you move, and pull over to answer rider messages.
Fatigue matters too. In the 2024 survey study, drivers who often drove while tired had about three times the odds of reporting a work crash [7]. Drivers who did 10 or more trips a day, and those who often drove on roads they did not know, also had higher odds [7].
Research on how ride apps affect crash totals is mixed. A 2022 review found effects that differ by setting, with signs of fewer alcohol impaired driver collisions but more pedestrian collisions [14].
Frequently asked questions
Am I covered if I have an accident on the way home with the app still on?
If you are logged in and available, you are usually in Period 1. TNC coverage at lower limits applies under most state laws, and your personal policy may exclude the crash [1, 3]. If you turn the app off, you are driving for yourself, and your personal policy applies as written. Switching the app off at the end of a shift makes the line clear.
Will the app company pay to fix my own car?
Not always. State laws mostly require liability coverage, which pays for harm to others. New York’s law does not require coverage for the driver’s own car [5]. California’s insurance department has said TNCs there are not required to carry collision or comprehensive [4]. If the app company lists coverage for your car, check when it applies and the deductible.
Do I have to tell my insurer that I drive for an app?
Your policy and your state’s rules decide what you must report. Regulators urge drivers to talk with their insurance company before they start [9, 12]. That call tells you which phases your policy excludes and whether an add on is available. Staying quiet can mean learning about an exclusion after a crash.
I was a passenger and got hurt. Whose insurance pays?
Most ridesharing companies carry liability policies that cover rider injuries [9]. Under most state laws, the highest required limits apply from the time the driver accepts the ride until you get out [1, 5]. Your own health or auto coverage may also play a role, so ask each insurer how benefits will be coordinated. Keep trip receipts, medical records and photos together.
Does a rideshare add on also cover food or package delivery?
Not necessarily. Texas’s insurance department lists both ride hailing and paid delivery among the uses most personal policies don’t cover [2]. Whether one add on covers both depends on its wording. Ask about each app you use, in writing.
What if another driver causes the crash while I have a rider?
The other driver’s liability coverage is meant to pay for harm that driver causes. If that driver has no insurance or too little, UM/UIM coverage matters. Washington requires underinsured motorist coverage during rides, and New York requires supplementary UM/UIM coverage [3, 5]. California’s insurance department has said TNCs there are not required to carry it [4]. Check what applies in your state.
The bottom line
Recommendation from Safety Behind the Wheel Foundation
Safety Behind the Wheel Foundation urges rideshare drivers to confirm their coverage for every phase of a shift before they accept a first ride. Rideshare coverage is not one policy. It is a relay. The baton passes at moments you might not notice: when you open the app, when you tap accept, and when the rider shuts the door. Gaps tend to sit in Period 1 and around your own car and your own injuries.
Before you drive, match each phase to a named coverage and limit, in writing. Then drive so the claim never happens: route set before you roll, rested, and fully focused on the road.
Related articles
- Making sense of your insurance coverage after a serious car crash
- How medical payments coverage and PIP work after a crash
- When the other driver’s insurance is too low to cover your injuries
- Personal and rental cars for work: a safety guide for employers
- Drowsy driving: warning signs, hidden risks and what really works
Sources and further reading
- 1National Association of Insurance Commissioners, Center for Insurance Policy and Research. Commercial Ride-Sharing. Updated October 23, 2023. content.naic.org/…/topic_commercial_ride_sharing.htm
- 2Texas Department of Insurance. Auto insurance guide. Updated December 11, 2025. tdi.texas.gov/pubs/consumer/cb020.html
- 3Washington State Legislature. RCW 46.72B.180: Insurance that covers commercial transportation services, requirements, terms of coverage. Last amended 2022 (2022 c 281 s 33); accessed October 2026. apps.leg.wa.gov/rcw/default.aspx?cite=46.72B.180
- 4California Department of Insurance. Notice to Transportation Network Company Drivers. Published or updated: not stated (accessed October 2026). insurance.ca.gov/…/TransNetwkDrvrs.cfm
- 5New York State Department of Financial Services. FAQ: About Ride Sharing (Transportation Network Company Services). Published or updated: not stated (reflects amendments effective June 29, 2017; accessed October 2026). dfs.ny.gov/…/trans_network_co_ride_sharing_faqs
- 6California Department of Insurance. California Insurance Products Available to Transportation Network Companies (TNC) Drivers. Chart updated June 6, 2018. Data year: 2018 (products listed at that time). insurance.ca.gov/…/1-12-17TNCProductApprovalChartPublic.pdf
- 7Shannon B, Friedman LS, Hellinger A, Almberg K, Ehsani J (via PubMed). Work-related crashes in rideshare drivers in the United States. Journal of Safety Research, vol. 89, pp. 13-18. Published 2024. Data year: survey year not stated in abstract (published 2024). pubmed.ncbi.nlm.nih.gov/38858035
- 8Washington State Legislature. RCW 48.177.005: Definitions. Revised Code of Washington, accessed October 2026. apps.leg.wa.gov/rcw/default.aspx?cite=48.177.005
- 9National Association of Insurance Commissioners. Sharing Economy Insurance: Rideshare, Homeshare. Published or updated: not stated (accessed October 2026). content.naic.org/consumer/sharing-economy.htm
- 10California Department of Insurance. New insurance rules for ride-share companies and drivers take effect today. Press release, July 1, 2015. insurance.ca.gov/…/release067-15.cfm
- 11California Department of Insurance. Automobile Insurance (text version). Updated February 5, 2025. insurance.ca.gov/…/auto101.cfm
- 12Washington State Office of the Insurance Commissioner. Gig workers and delivery drivers. Published or updated: not stated (accessed October 2026). insurance.wa.gov/…/gig-workers-and-delivery-drivers
- 13National Highway Traffic Safety Administration. Distracted Driving Dangers and Statistics. Published or updated: not stated (accessed October 2026). Data year: 2024. nhtsa.gov/risky-driving/distracted-driving
- 14Morrison CN, Kirk DS, Brazil NB, Humphreys DK (via PubMed). Ride-Hailing and Road Traffic Crashes: A Critical Review. American Journal of Epidemiology, vol. 191, no. 5, pp. 751-758. Published 2022. pubmed.ncbi.nlm.nih.gov/35179205
This article reflects the safety priorities of rideshare driver insurance and financial protection for drivers, riders and others on the road. It is general education, not legal, insurance or financial advice, and it does not describe any one insurer's or app company's policy. Rideshare rules change, so verify details with your state insurance department. For your own situation, contact your insurance agent or company, or a licensed attorney in your state. Reviewed October 2026.
Cite this article: Safety Behind the Wheel Foundation. “Rideshare insurance gaps: how your coverage changes from app off to passenger aboard.” drivewithcare.org, https://drivewithcare.org/rideshare-insurance-gaps-by-trip-phase/. Reviewed October 2026.
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