This FAQ addresses how insurance coverage works when renters use your vehicle for rideshare (Uber/Lyft). It outlines the differences between Wheelbase coverage and personal insurance, provides the claims process, and offers best practices for protecting your business.
If a renter uses the vehicle for rideshare or gig work and is involved in an accident, what is the claims process?
Wheelbase insurance is available to transportation network companies (TNC) exclusively. Those companies include Uber and Lyft and exclude Doordash, Amazon delivery, etc. Please research the company your renter is driving for before releasing the vehicle.
Wheelbase Rideshare Auto Basic and Auto Essential covers liability for rideshare during period 1, and the claims process is the same as any rental (following the steps after clicking the blue File a Claim button on the reservation)
If a renter brings their own insurance you will need to verify if their policy covers a rental vehicle being used as rideshare. If it does not, your business is not protected.
Would the renter be required to provide proof of active gig or rideshare work (such as being logged into an app or trip history) at the time of the accident for coverage to apply?
Participation in rideshare or gig work could prevent them from being covered if their insurance policy does not extend to that.
For Wheelbase (our Auto Basic or Auto Essential) insurance, coverage extends to rideshare but not gig work like food or package delivery.
How is coverage handled if the vehicle is classified as rideshare, but the renter was not actively working or logged into a gig platform at the time of the incident?
They would be covered by Wheelbase insurance. You would need to verify coverage with their insurance if they bring their own.
Are there any exclusions or limitations I should be aware of when renting out vehicles that are classified under rideshare use?
Yes. You must confirm that any renter’s insurance policy coverage extends to use during active rideshare or gig work. While our 3rd party Axle confirms that they may have an active policy, it does not include verification of rideshare endorsement. This would mean you should contact their insurance company to confirm coverage.
As the vehicle owner, are there additional steps I should take to ensure my vehicles are fully protected when rented to others?
Remember:
Axle does not verify if a policy includes a rideshare endorsement. Call the renter's insurance provider directly. Specifically ask: "Does this policy provide coverage for the policyholder while operating a rental vehicle for hire (rideshare/gig work)?" If the answer is no, your business is at risk.
Standard Wheelbase insurance excludes gig work (food or package delivery). You must clearly communicate this to your renters to ensure they do not void the coverage.
The success of a claim often depends on the quality of documentation provided at the start of the reservation. Take at least 20 high resolution pictures during the hand off process, and be sure to include:
- The odometer and fuel level.
- The dashboard (to prove no warning lights are on).
- All four corners and the roof of the vehicle.
Utilize E-signatures for supplemental liability responsible for the deductible if an accident occurs during rideshare periods 1-3 (when the rideshare company's insurance is primary). You can include this in your own rental agreement.
Because rideshare vehicles experience higher-than-average wear and tear, your security deposit could reflect that risk. You might increase your security deposit for vehicles that will be used for rideshare to cover the potential deductible ($1,000 for Essential or $2,500 for Basic).
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