What Are Rideshare Coverage Periods?

Rideshare coverage periods are a framework used by Uber, Lyft, and most state transportation network company (TNC) insurance statutes to define which insurance applies at each stage of a rideshare trip. The same accident produces different coverage outcomes depending on which period is active when it occurs.

There are four periods, numbered 0 through 3.

What is Period 0: the app-off personal coverage period?

When the rideshare app is completely off, the driver is operating purely for personal purposes. The driver’s personal auto policy applies without restriction. No platform insurance is active. The driver is covered the same way any private individual would be.

What is Period 1: app on, waiting for a match?

Period 1 begins the moment the driver logs into the rideshare app and goes into available status. No passenger has been matched yet. The personal auto policy is typically excluded at this point, because the driver is now engaged in a commercial transportation activity. The platform provides limited liability coverage during Period 1 – generally $50,000 per person / $100,000 per accident in bodily injury liability and a property damage minimum set by each state’s TNC statute. Period 1 coverage does not include collision or comprehensive coverage for the driver’s own vehicle in most platform programs, and most platforms do not provide uninsured or underinsured motorist coverage during this period.

Period 1 is the coverage gap that catches many drivers off guard. The personal auto policy is excluded, but the platform’s coverage is materially thinner than what applies during an active ride. For example, a driver waiting for a trip request who rear-ends another car may find that their personal insurer denies the claim because the app was active, while the platform pays only limited liability limits with no coverage for the driver’s own vehicle damage.

What is Period 2: match accepted, en route to the pickup?

Period 2 begins when the driver accepts a trip request and is driving toward the passenger’s location. Platform liability coverage increases substantially, typically to $1,000,000 per occurrence. Contingent collision and comprehensive coverage for the driver’s vehicle also becomes available in most major platform programs, subject to conditions including that the driver maintains personal collision coverage and subject to a platform deductible. For example, if a driver accepts a trip and is heading to pick up the passenger when a collision occurs, the $1,000,000 liability limit applies and the platform’s contingent collision coverage can pay for vehicle repairs after the platform deductible.

What is Period 3: passenger in the vehicle through trip completion?

Period 3 covers the active ride from passenger pickup through dropoff and trip completion. Coverage is identical to Period 2 for most platforms: $1,000,000 liability, contingent physical damage, and UM/UIM coverage at whatever limit each state’s TNC statute requires.

Why does the coverage period matter in a rideshare claim?

When an accident occurs, the first question an insurer or platform adjuster asks is which period was active. Platform logs, GPS records, and app status timestamps are used to establish the period. Disputes arise when a driver claims the app was off (Period 0, personal policy) while the platform’s records show the app was active (Period 1, platform coverage with personal policy excluded). These disputes can leave both the driver’s personal insurer and the platform arguing that the other is responsible.

A rideshare endorsement on the personal auto policy fills the Period 1 gap by extending personal coverage into the app-on waiting period. A coverage review can confirm whether a rideshare endorsement is in place and what it covers.

Coverage periods, dollar amounts, and deductibles vary by platform and state. The amounts cited here reflect the general structure; the rideshare driver and passenger guides for Georgia include the Georgia-specific statutory amounts.

Rideshare insurance for Georgia drivers
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