Understanding TNC Insurance

If you drive for a ridesharing company or an on-demand delivery service or are considering working for one, understanding TNC insurance is important.

What Is TNC?

TNC stands for transportation network companies, such as Lyft, Uber, or a delivery service. Essentially, you are using your automobile to provide a service for these companies as an independent contractor. Your vehicle is never insured by the TNC when you are not driving for it, so you always need to maintain a personal auto policy.  

Do You Need Additional Insurance?

Lyft and Uber do not offer comprehensive and collision coverage while a driver is logged in and waiting for a passenger request. Their coverage increases during the ride. Delivery services vary in what they offer.

TNC insurance covers the gap between your personal auto policy and the protection offered by a rideshare or delivery platform. It’s sold as a supplement to an auto policy, but not all insurance companies offer it, so you need to locate an agent who does.

Coverage options vary from state to state. To make an informed decision, determine what protection is offered by the TNC (check on the company website) and take that information to an insurance agent to discuss what the extra protection offers and obtain a quote.

Everyone has a different appetite for risk. As a gig worker for a TNC, a little legwork can offer you peace of mind knowing you made the best insurance decision for your situation.

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