Insurance Gaps in Gig Economy Driving: Coverage Considerations for Rideshare and Delivery

The gig economy's rapid expansion has led to increased participation in app-based short-term jobs such as ridesharing and food delivery. Despite the appeal of flexible hours and quick income through platforms like Uber, Lyft, and DoorDash, many workers overlook critical insurance coverage gaps. Personal auto insurance policies often exclude coverage for accidents that occur during commercial activities, which includes using a vehicle for gig work.

This creates potential financial exposure for drivers who may face costs for vehicle damage and medical expenses without proper coverage. Insurance coverage for gig driving typically varies across three phases: when the app is on awaiting a request, traveling to pick up, and transporting passengers or goods. Many platform-provided coverages apply only during the latter two phases, leaving the waiting period uncovered and exposing drivers to risk.

To address these risks, insurers such as Indiana Farm Bureau Insurance offer rideshare endorsements that expand coverage to all three phases of gig driving. Drivers are advised to verify their insurance status with their providers before working and seek endorsements where necessary to mitigate exposure. This guidance underscores the need for regulatory and insurance industry attention to evolving gig economy risks and coverage complexities.