# IMPORTANT INFO REGARDING INSURANCE FOR DRIVERS



## JanuaryStone (Oct 29, 2016)

Hi all,
I have been driving for about 7 month*s *in the Phoenix area. While setting up as a driver I came to discover that in order to be in *FULL COMPLIANCE *with your private vehicle insurer while operating as a Ride Share Driver, you must carry what is called a *"Ride Share Endorsement"* on your vehicle policy. In Arizona where I drive, currently, only TWO companies provide this: Farmers and Mercury. Your state may have more options, and this will change in the future as the market demand for it increases.
*What is a Ride Share Endorsement OR R.S.E?*
This is additional coverage that is added onto your collision insurance coverage that is an addendum/rider which provides additional coverage to your personal vehicle while you are logged into a Ride Share APP as a driver. It basically ensures that should you be at fault for any damage to your own vehicle while operating as an Uber/Lyft/whatever Driver, your insurance company will either cover the damage or work with Uber's insurer to cover the damage because you have officially informed them that you are earning money driving your vehicle. Of course there will be deductibles etc. depending on your coverage choices.
*Why is a RSE necessary?*
I came to discover that though having a Ride Share Endorsement *isn't REQUIRED by UBER or LYFT*, HOWEVER, should a driver be at fault in an accident or for any reason damage their own vehicle while logged into a Driver app, WITHOUT a R.S.E, your insurer will refuse coverage and likely cancel your policy altogether. Additionally, because you didn't officially inform your carrier that you would be working as a Ride Share Driver (By having a R.S.E on your policy), UBER'S insurance will *NOT COVER ANY DAMAGE TO YOUR VEHICLE EITHER*. WHY? Because when you signed up for your insurance you likely agreed in the fine print that you WOULD NOT BE USING YOUR PERSONAL VEHICLE FOR "LIVERY PURPOSES", that is to say, to make money driving. This is why you got that great rate. Uber and Lyft clearly state in their insurance documents, which you agreed to when you signed up, that they will only repair damage to a driver's vehicle IF THE DRIVER HAS A RIDE SHARE ENDORSEMENT WITH THEIR INSURER OR THAT THE INSURER IS AT LEAST OFFICIALLY AWARE THAT THE VEHICLE IN QUESTION IS A RIDE SHARE CAR. Otherwise Uber and Lyft will deny coverage.
MOST insurers currently do not offer RSE's. Here in AZ Farmers and Mercury do. I know that Progressive, Liberty Mutual, All State (They are considering it) Cooperators and many others do not. As iIstated earlier, this varies by state so you would need to check.
*WHAT DOES IT COST?*
I had to switch both of my vehicles and my house insurance to Farmers in order to get a reasonable rate on everything. My Ride Share Endorsement policy for one vehical costs $195.00 every six months.
*BUT UBER/LYFT'S INSURANCE COVERS EVERYTHING!*
Not true. Their insurance cover mainly *PASSENGERS AND THIRD PARTIES. *That is to say *EVERYONE BUT THE DRIVER AND THEIR CAR. *They will also cover your car, but only if you are on the up and up with your insurer about being a Ride Share Driver.
If you choose to drive without informing your insurer and/or getting a R.S.E (which is your right) and something happens and your car is damaged, you will be in for a rude awakening should you be at fault when you try to get either UBER's insurer or your own to cover the damage on your car.
*"IF SOMETHING HAPPENS I CAN ALWAYS JUST LIE TO MY INSURER AND SAY I WASN'T RIDE SHARE DRIVING."*
Wrong. Think about it: any insurance adjuster with half a brain is going to properly vet your Driver's License number, your vehicle's VIN as well as your plate number etc. should you make a claim for damages. Remember all that info you uploaded to Uber/Lyft by taking photos of your documents and the numbers you provided to get your background check? Insurers have direct access to ALL of that information. It's basically one of the first things they check; many people Ride Share drive these days; of course they check. Once they discover (and they WILL) that you are a Ride Share driver, they will ask Uber/Lyft to provide them with your logged-in hours on their apps for the day the damage occurred to your vehicle. If you were logged in as a driver when the damage occurred, they will know. You could try to lie and say the damage happened when you were not logged in ( "I was going to Safeway for hot dog buns when it happened honest!") but that would only work if there was no other driver/vehicle/person involved. However, if you hadn't informed your insurer that you are a Ride Share Driver in the first place to avoid paying for extra coverage (Like a RSE) this is a moot point because they are going to find out and then deny you coverage and likely cancel your policy altogether for being dishonest about your vehicular usage.
*DON'T BELIEVE ME? CALL YOUR INSURER TODAY AND ASK THEM WHAT COVERAGE YOU WOULD HAVE IF YOU DAMAGE YOUR CAR WHILE OPERATING YOUR VEHICLE AS A RIDE SHARE DRIVER WITHOUT A VALID R.S.E. YOU'LL SEE. LOOK UP THE DETAILS OF UBER/LYFT COVERAGE TOO. IT'S ALL THERE.*
Now, of course none of this seemed important when you signed up as a driver. Uber and Lyft also purposely don't draw any major attention to Ride Share insurance because it would turn many would-be drivers away from signing up to begin with. The more drivers on the road, the more money they make. Rest assured, all Ride Share companies have squarely covered their butts and are covering yours a little as possible.
My advice to any drivers out there is to do your due diligence when it comes to insurance policies and Ride Share Driving. You may be at risk to facing thousands of dollars in repairs to your vehicle if you get in, even a minor, wreck.


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## Shangsta (Aug 15, 2016)

Not to be rude but you are posting this like everyone on here doesnt know what RSI is. You realize there is a forum on here just dedicated to insurance that goes over this very topic?


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## Frontier Guy (Dec 27, 2015)

Oh, and you are wrong, Mercury, Farmers, Allstate, Geico, Progressive and a couple of others all offer RSE coverages, it might vary by market.


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## Older Chauffeur (Oct 16, 2014)

JanuaryStone said:


> Hi all,
> I have been driving for about 7 month*s *in the Phoenix area. While setting up as a driver I came to discover that in order to be in *FULL COMPLIANCE *with your private vehicle insurer while operating as a Ride Share Driver, you must carry what is called a *"Ride Share Endorsement"* on your vehicle policy. Currently, only TWO companies provide this: Farmers and Mercury.
> *What is a Ride Share Endorsement OR R.S.E?*
> This is additional coverage that is added onto your collision/comprehensive insurance coverage that is an addendum/rider which provides additional comprehensive coverage to your personal vehicle while you are logged into the APP as a driver. It basically ensures that should you be at fault for any damage to your own vehicle while operating as an Uber/Lyft/whatever Driver, your insurance company will either cover the damage or work with Uber's insurer to cover the damage because you have officially informed them that you are earning money driving your vehicle.
> ...


Good post, but you might ask a moderator that it be moved to the "Insurance" forum where more would be likely to read it. There seem to be lots of drivers who believe they can just lie to or manipulate insurance claims reps, adjusters and investigators regarding use of their vehicles. They need to see what you have written here.

One minor change I would suggest is that in the second line of the "What is a RSE" paragraph, it adds collision insurance as well as comprehensive. A rather common error is mistaking the term comprehensive as applied to insurance for the usual definition of the word, "including all." However, in auto policies it means by means other than collision, such as fire, theft, a tree branch falling on the car, a rock hitting a windshield, etc.


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## UberBastid (Oct 1, 2016)

Frontier Guy said:


> Oh, and you are wrong, Mercury, Farmers, Allstate, Geico, Progressive and a couple of others all offer RSE coverages, it might vary by market.


Yes, it does.
I have had Farmers for YEARS, and I called my guy and he tells me that they are OUT of the market for new policies in California. I have to change on that car.

~ UberBastid ~


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## circle1 (Sep 17, 2016)

JanuaryStone said:


> Hi all,
> I came to discover that though having a Ride Share Endorsement *isn't REQUIRED by UBER or LYFT*, HOWEVER, should a driver be at fault in an accident or for any reason damage their own vehicle, WITHOUT a R.S.E, your insurer will refuse coverage and likely cancel your policy altogether. Additionally, because you didn't officially inform your carrier that you would be working as a Ride Share Driver (By having a R.S.E on your policy), UBER'S insurance will *NOT COVER ANY DAMAGE TO YOUR VEHICLE EITHER*. WHY? Because when you signed up for your insurance you likely agreed in the fine print that you WOULD NOT BE USING YOUR PERSONAL VEHICLE FOR "LIVERY PURPOSES", that is to say to make money driving. This is why you got that great rate.
> MOST insurers currently do not offer RSE's. Farmers does. Mercury does. I know that Progressive, Liberty Mutual, All State, Cooperators and many others do not.
> *WHAT DOES IT COST?*
> ...


Abso-freakin'-lutely . . . the TNCs will only cover _*their*_ arse!

If a driver can swing it, they should buy a Business Owners Policy, or all-risk insurance+ Umbrella insurance (if full-time driving).


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## JanuaryStone (Oct 29, 2016)

Shangsta said:


> Not to be rude but you are posting this like everyone on here doesnt know what RSI is. You realize there is a forum on here just dedicated to insurance that goes over this very topic?





Shangsta said:


> Not to be rude but you are posting this like everyone on here doesnt know what RSI is. You realize there is a forum on here just dedicated to insurance that goes over this very topic?


Thanks for the feedback. I am aware that RSI is covered to death on this site, I just thought I might break it down in greater detail. Many drivers on this site don't even know what RSI or RSE's are. I didn't bother breaking it down by Period 1, 2, 3 and all that, I just thought a general explanation on why RSI is important might encourage other drivers who do not know/care about looking into what coverage they might not have or need might be some good input.


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## JanuaryStone (Oct 29, 2016)

Frontier Guy said:


> Oh, and you are wrong, Mercury, Farmers, Allstate, Geico, Progressive and a couple of others all offer RSE coverages, it might vary by market.


Thanks for the input. Here in AZ only 2 companies offer RSI or RSE's: Farmers and Mercury. Allstate is currently working on it, but hasn't implemented anything as of yet. However, you are right that it varies depending on the state so I updated that section of my post. Thanks for pointing that out.


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## JanuaryStone (Oct 29, 2016)

UberBastid said:


> Yes, it does.
> I have had Farmers for YEARS, and I called my guy and he tells me that they are OUT of the market for new policies in California. I have to change on that car.
> 
> ~ UberBastid ~


I updated my post to explain that RSI coverage varies by state. I was inferring to my own state of AZ. Thanks for the input.


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## JanuaryStone (Oct 29, 2016)

circle1 said:


> Abso-freakin'-lutely . . . the TNCs will only cover _*their*_ arse!
> 
> If a driver can swing it, they should buy a Business Owners Policy, or all-risk insurance+ Umbrella insurance (if full-time driving).


That's pretty good advice. I looked into commercial policies that would cover my vehicle full-time but they were very expensive, about $7-$9 thousand per year. Not worth it if a person is only driving for UberX. Thanks for the reply.


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## JanuaryStone (Oct 29, 2016)

Older Chauffeur said:


> Good post, but you might ask a moderator that it be moved to the "Insurance" forum where more would be likely to read it. There seem to be lots of drivers who believe they can just lie to or manipulate insurance claims reps, adjusters and investigators regarding use of their vehicles. They need to see what you have written here.
> 
> One minor change I would suggest is that in the second line of the "What is a RSE" paragraph, it adds collision insurance as well as comprehensive. A rather common error is mistaking the term comprehensive as applied to insurance for the usual definition of the word, "including all." However, in auto policies it means by means other than collision, such as fire, theft, a tree branch falling on the car, a rock hitting a windshield, etc.


Thanks for the feedback. You are right on both counts, I will repost this in the INSURANCE forum as many drivers are either ignorant of what coverage they should be carrying or simply don't realize the risks by not having RSI. I will also take out the comprehensive reference as it really doesn't apply to Ride Share Driving as such. Good advice thanks.


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## circle1 (Sep 17, 2016)

JanuaryStone said:


> That's pretty good advice. I looked into commercial policies that would cover my vehicle full-time but they were very expensive, about $7-$9 thousand per year. Not worth it if a person is only driving for UberX. Thanks for the reply.


. . . did you get a quote on Umbrella ins.? That policy covers things most other policies do not.


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## Older Chauffeur (Oct 16, 2014)

circle1 said:


> . . . did you get a quote on Umbrella ins.? That policy covers things most other policies do not.


My umbrella policy increases my liability coverage for my homeowner's and auto policies, but mirrors them as far as what events it insures against. For example, it excludes driving for hire in very specific language, just like my auto policy.


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## JanuaryStone (Oct 29, 2016)

circle1 said:


> . . . did you get a quote on Umbrella ins.? That policy covers things most other policies do not.


I didn't but thank for the info. I will indeed look into it.


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