If you are offering rides to paying customers through a Transportation Network Company (TNC), such as Uber or Lyft, Wisconsin law requires that you have insurance coverage that goes beyond the typical personal policy. Before driving for a TNC, you should contact your personal auto insurer and determine what coverage, if any, will be available while offering rides in your covered vehicle. You should also review any contract you have with a lienholder to ensure that you are not violating the terms of such an agreement.
Be sure to review the TNC's commercial policy to find out what is covered and what is not. Uber and Lyft offer contingent collision and comprehensive coverage that takes effect when the driver accepts a ride request or has a passenger in the vehicle. However, drivers must elect to purchase and add these coverages to their personal auto insurance. Some personal auto insurers may not offer the additionally required insurance.
It's important to note that even if you have the required enhanced liability coverage, it may not protect you against physical damage to your vehicle while you are logged into a TNC's network. This gap in coverage could be a problem if you have not paid off the loan on your vehicle. Driving your car without physical damage protection could violate the terms of the loan agreement between you and your lender. If you totaled your vehicle in a crash while driving for a TNC, your loss would not be covered and you would still owe your lender the balance of your loan.
TNC coverage typically only applies while you have the app turned on. Freelance rides may not be covered. If you have turned off the app or you accept a street hail, you may not be covered. Failure to maintain the appropriate coverage could result in fines or loss of your license.
On-Demand Delivery Drivers
Call your car insurance company before using your car for work. If you don't have the right car insurance for your delivery work, you could get stuck paying big auto accident bills yourself.
There might be auto insurance provided by the service. Check their website for any coverage. Make sure you understand where the provided coverage ends and begins, and whether there's a coverage gap between their policy and your personal auto insurance policy.