Gap Insurance

jhearcht

Active Member
New leased car. Drive about 12 to 16 hours a week. UBER provides insurance for passengers & car, but the deductible for collision is $1000. Apparently my new auto insurance does not (yet) include RideShare, and has a $500 deductible. So, I would be liable for an extra $500 per accident. At $4/mo = $48/yr, does that make the Gap insurance worthwhile? Am I missing something?

Are there other considerations I'm not aware of? Is there a real difference between a RideShare endorsement, and Gap insurance?
 

TCar

Well-Known Member
It has been remarked (UP in the past) that not having Gap insurance added to your regular insurance allows insurance company to not cover you if you are working for commercial purposes.
Not sure about rental cars, but I carry the maximum insurance for my vehicle at all times.
 

Daisey77

Well-Known Member
New leased car. Drive about 12 to 16 hours a week. UBER provides insurance for passengers & car, but the deductible for collision is $1000. Apparently my new auto insurance does not (yet) include RideShare, and has a $500 deductible. So, I would be liable for an extra $500 per accident. At $4/mo = $48/yr, does that make the Gap insurance worthwhile? Am I missing something?

Are there other considerations I'm not aware of? Is there a real difference between a RideShare endorsement, and Gap insurance?
Gap insurance pays the difference on your loan if your car was to be totaled. So if your car gets totaled in an accident and you owe 23000 but the car is only worth $15,000 pay off the $8,000 difference , relieving you of that financial responsibility. Most gap insurances are voided if you use your vehicle commercially though. As for as the Rideshare endorsement, during phase one, Uber only has liability on you. so if the accident is your fault, you and your vehicle are still screwed if your personal insurance doesn't cover you. Generally they don't because they view it as you being online therefore you're working
 

SuzeCB

Well-Known Member
Gap insurance pays the difference on your loan if your car was to be totaled. So if your car gets totaled in an accident and you owe 23000 but the car is only worth $15,000 pay off the $8,000 difference , relieving you of that financial responsibility. Most gap insurances are voided if you use your vehicle commercially though. As for as the Rideshare endorsement, during phase one, Uber only has liability on you. so if the accident is your fault, you and your vehicle are still screwed if your personal insurance doesn't cover you. Generally they don't because they view it as you being online therefore you're working
He's talking about a RS endorsement, not gap loan insurance. Some folks, even agents/brokers, call it gap, and it confuses the issue.
Post automatically merged:

New leased car. Drive about 12 to 16 hours a week. UBER provides insurance for passengers & car, but the deductible for collision is $1000. Apparently my new auto insurance does not (yet) include RideShare, and has a $500 deductible. So, I would be liable for an extra $500 per accident. At $4/mo = $48/yr, does that make the Gap insurance worthwhile? Am I missing something?

Are there other considerations I'm not aware of? Is there a real difference between a RideShare endorsement, and Gap insurance?
If you go with a company that offers RS endorsement, and you purchase it, whatever Uber's insurance doesn't cover, your personal will. Some will even give you the $500 difference if your personal deductible is $500 while Uber's is $1000.

Uber's insurance will not cover your personal injury, rental car while your car is being fixed. Depending on where your market is and the laws for that area, your own vehicle's damage is probably not covered during certain stages. App on and waiting for a Ping, or on your way to the pickup. And I wouldn't suggest trying to lie to your personal and say that you weren't driving RS at the time, because that's insurance fraud, and many insurance companies CAN and WILL check. Both Uber and Lyft will cooperate with them and provide the necessary info for timing, etc.
 
Last edited:

bone-aching-work

Well-Known Member
Gap insurance pays the difference on your loan if your car was to be totaled.
"Phase one" refers to time spent travelling to passenger pick-up, right? I had thought that was what the word "gap" was in reference to... that without the extra coverage, you had a gap in being covered between non-commercial time (before accepting the ride) and when Uber/Lyft begins their coverage (the ride being officially started).
 

Daisey77

Well-Known Member
"Phase one" refers to time spent travelling to passenger pick-up, right? I had thought that was what the word "gap" was in reference to... that without the extra coverage, you had a gap in being covered between non-commercial time (before accepting the ride) and when Uber/Lyft begins their coverage (the ride being officially started).
Phase one is when you're online waiting for a request. I think originally it was more referred to as Gap but it was getting confused with the gap insurance that I mentioned above. So now it's referred to as Rideshare insurance. Maybe? I'm not exactly sure but phase one is when you're online waiting for request
 

Taxi2Uber

Member
As for as the Rideshare endorsement, during phase one, Uber only has liability on you. so if the accident is your fault, you and your vehicle are still screwed if your personal insurance doesn't cover you. Generally they don't because they view it as you being online therefore you're working
There may be differences between states, and what company Uber uses.
From my contract, here in NV, Uber uses Allstate and there is some property damage coverage as well:
uber period 1 insurance.JPG


"Phase one" refers to time spent travelling to passenger pick-up, right?
It's referred to as 'Period', but what you describe is Period 2.

Period 1: The Uber app is on, but you're waiting for a ride request.

Period 2: You've accepted a ride request and are on your way to pick up a passenger.

Period 3: The passenger is in your car. This period ends when the passenger exits the car.
 

Atom guy

Well-Known Member
Your lease should already include GAP insurance. Check your paperwork. Like other comments have already said, GAP insurance covers the difference between what you owe and what the car is worth in the event of a total loss. GAP does NOT cover your deductible for a regular accident.
 

SuzeCB

Well-Known Member
Your lease should already include GAP insurance. Check your paperwork. Like other comments have already said, GAP insurance covers the difference between what you owe and what the car is worth in the event of a total loss. GAP does NOT cover your deductible for a regular accident.
That's not what he was talking about.
Post automatically merged:

There may be differences between states, and what company Uber uses.
From my contract, here in NV, Uber uses Allstate and there is some property damage coverage as well:
View attachment 516378
That's the liability coverages. At no stage/period does U/L's insurance cover injury to the driver.

You would have to be enrolled and paying for that $0.0375/mile insurance that Uber has partnered with, and that would only cover Uber miles, not Lyft.
 

Tony73

Well-Known Member
I could be wrong, but Uber’s insurance should cover the whole damage including payoff if it’s you that’s at fault. The deductible is $1000 and your insurance has nothing to do with it if you were online on the way, or with a pax. But as I said, I could be wrong. You should ask Uber for a copy of their coverage agreement.
 

SuzeCB

Well-Known Member
I could be wrong, but Uber’s insurance should cover the whole damage including payoff if it’s you that’s at fault. The deductible is $1000 and your insurance has nothing to do with it if you were online on the way, or with a pax. But as I said, I could be wrong. You should ask Uber for a copy of their coverage agreement.
Uber will cover the liability issues, including injury to any legitimate Uber Riders you are transporting (meaning in full compliance with TOS).

If you are at fault in an accident while logged into the app, your car will be covered by Uber, with a $1,000 deductible ($2500 on Lyft), up to whatever limit you have on your personal insurance. If your you don't carry Collision on your vehicle, damage to your car will not be covered by U/L's insurance. Even if you do carry personal injury insurance for the driver on your personal insurance, any injury to you will not be covered.
 
Top