How it works
North Dakota's insurance department explains that most personal auto policies exclude transporting passengers for a fee, often through a livery exclusion. The Texas Department of Insurance likewise lists driving for a ride-hailing service, or delivering food or other items for a fee, among things most policies do not cover.
State TNC laws split a driver's time into periods. North Dakota's law is a typical example:
- App off. The TNC does not have to provide insurance, so your personal policy is what applies.
- App on, waiting for a ride request. The TNC or the driver must provide primary coverage that meets limits set by state law.
- Ride accepted until the passenger gets out. The TNC or the driver must provide primary coverage with much higher liability limits.
North Dakota warns that if a personal policy excludes ride-hailing, a driver likely has no coverage for those incidents unless they have a TNC-specific endorsement. What an endorsement covers, and in which periods, varies by insurer and state, so ask how it handles the waiting period and damage to your own car.
Related terms
Sources
- North Dakota Insurance Department, Transportation Network Company Guidance livery exclusion, the three TNC coverage periods, TNC-specific endorsements
- Texas Department of Insurance, Auto insurance guide ride-hailing and paid delivery driving excluded from most policies
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