8 Car Insurance Tips for Teachers Who Drive for Uber, Lyft, or Delivery Apps

• Personal auto insurance doesn’t cover teachers when they’re driving for a rideshare or delivery app.
• Rideshare and delivery apps may provide insurance coverage while you’re actively driving, but it’s typically limited and may leave coverage gaps.
• Most teachers need an additional business endorsement, rideshare insurance, or commercial auto insurance to ensure they’re covered when they’re driving for an app.
• Comparing quotes and looking for professional discounts may help teachers save money on the auto insurance they need.

You’ll almost certainly need additional insurance when you drive for a rideshare or delivery app. Personal auto insurance doesn’t cover business driving, including any driving you do for a transportation network company, or TNC.¹ If you have an accident while driving for an app, you may not be covered for liability, damages, or damages to your own vehicle.

Bottom line: If you’re planning to drive as a side gig, plan to get additional rideshare insurance coverage to protect yourself and your vehicle.

In general, insurance coverage for app drivers is broken down into periods based on activity. Here’s how a typical work cycle might be covered under personal and company-provided insurance:

Uncovering Coverage Gaps

As a driver, you may need additional insurance to cover the Period 1 gap, when you’re waiting for a ride or delivery request. In some cases, you might also use your own personal insurance to provide collision or comprehensive coverage, or to help defray a high deductible on company-provided insurance.

Because different companies offer different coverage, you’ll need to research exactly what’s covered – and what coverage you’ll need to provide – at any company you’re considering. Common scenarios include:

• Limited coverage: Some companies, including Uber² and Lyft,³ provide coverage while you’re actively driving for the app. You may have little or no coverage during Period 1, and may have to pay to add comprehensive and collision coverage.
• Excess liability coverage: Some companies, including many delivery apps like DoorDash,⁴ offer additional liability coverage that kicks in after your insurance coverage is exhausted.
• No insurance coverage: Some companies, like Instacart, don’t offer their drivers liability insurance coverage at all. In these cases, you’re responsible for providing your own commercial auto insurance, which can be pricey.

Before you decide to drive for any platform, read through the company’s insurance contract for your state and map out your coverage journey. When do they provide coverage? What are the liability limits? Can you get collision and comprehensive coverage that protects your vehicle? Make note of any coverage gaps you need to address. Then find out what supplemental insurance coverage from your insurance provider will cost you.

You must notify your insurance company that you’re driving for a rideshare or delivery platform. If you don’t, they may deny your future claims or cancel your insurance for breach of contract. Personal auto insurance covers personal use only. If you use your car to drive for business, you violate your agreement with the insurance provider.⁵

Your insurance company may also require you to carry rideshare insurance or a commercial policy. An insurance agent can help you determine what you need and how much it will cost.

Although costs and requirements will vary by state and circumstance, rideshare and delivery drivers have three basic options:

• Rideshare insurance: Rideshare insurance extends your personal auto insurance to cover gaps when a rideshare or delivery company’s insurance doesn’t cover you, or to help cover high deductibles.⁶ Rideshare insurance takes different forms, and some insurance providers don’t offer it at all. Check with your insurance company to understand your options.
• Business use endorsement: If you use your car occasionally for business, you may be able to extend your personal auto insurance policy with a simple business endorsement or rider. Your insurance company can help you decide whether you need a full commercial policy, rideshare insurance, or a business endorsement for your intended purposes.⁷
• Commercial auto insurance: You may need an additional commercial auto insurance policy to cover your driving, especially if the company you drive for does not provide insurance. Commercial policies cost more than rideshare insurance or a business use rider, though the cost varies by provider.

If the quote you get from your insurance company seems high, or they don’t offer rideshare insurance, you may want to gather additional data. Getting quotes from other insurance companies can help you find the best pricing and confirm that you’re getting the right coverage without overpaying.

To get an accurate quote, have your current insurance policy handy, as well as basic information about company-provided insurance, if it’s offered. Mention any mitigating factors that might influence your rate – for instance, if you’re planning to drive only in the summer, or only for a few hours a week during the school year.

Although this is far from a comprehensive list, here are five insurance providers that offer rideshare insurance and affinity, occupational, or membership discounts to teachers. Eligibility may be limited, so be sure to ask for details if you call for a quote. Also, don’t be afraid to ask your insurance provider (or any other one) about education discounts; they may be available but poorly advertised.

Additionally, Horace Mann — an insurance company designed for the education community — announced it is adding new coverage options, including rideshare coverage.⁸

Once you get a handle on insurance costs, think about how they’ll impact your net profits. As a quick exercise, here’s how many hours you’ll need to drive at $20 per hour to break even on rideshare vs. commercial auto insurance:

Make sure you’ll be driving enough to cover your insurance costs each month and still make money. You may want to compare the net cost of insurance between different platforms – and between insurance providers. Since higher insurance costs mean lower profits, it’s possible that these expenses could influence your decision on which rideshare or delivery platform to choose.

Don’t start the car until you’re certain your insurance coverage is lined up.

• Check with the rideshare or delivery company to learn about the insurance coverage they provide.
• Talk with your insurance provider to let them know you’ll be driving for an app, and to ask about the additional insurance you’ll need.
• Get quotes if needed and choose the option that gives you the best coverage for your money.
• Make sure your auto insurance is current and active, and any company coverage you’re being provided is in force.

Once you know you’re fully covered, you can focus on joining the ranks of teachers making extra income behind the wheel. Buckle up and drive safely!