I dropped off a passenger and was cruising specifically to a “Surge Zone” marked on the map. I was looking at the surge pricing, distracted, and rear-ended a truck. Since I didn’t have a passenger yet, Uber provided only liability (50/100/25). They refused to fix my car ($8,000 damage). My personal insurer refused too. I was in the “Period 1 Gap.”
Key Takeaways
- Period 1 = Liability Only: In 2026, most TNCs (Uber/Lyft) provide Third Party Liability during Period 1 (App On, No Trip), but ZERO Collision/Comprehensive for your car.
- The “Cruising” Trap: Insurers know you cruise to find rides. This is business activity. Your personal policy is void.
- You Are Self-Insured: Unless you have the specific endorsement, you are driving a car with no physical damage coverage during these windows.
- The Fix: A Rideshare Endorsement that explicitly states it covers “Physical Damage in Period 1.”
The “Why”: The Period 1 Definition
We covered this in the intro, but here is the specific financial danger:
- Period 2/3 (Trip): TNC provides Collision ($2,500 deductible).
- Period 1 (Wait): TNC provides $0 Collision.
If you drive 4 hours a night, you might spend 1 hour total in Period 1. That is 1 hour of total exposure to financial ruin.
[IMAGE: Pie chart showing a 4-hour shift broken down by “Insured Time” vs “Uninsured Time”]
The Investigation: Reading the Fine Print
I scrutinized the “Driver Addendum” for Uber and Lyft for 2026.
- Uber: “We maintain auto liability coverage… if you are not maintaining your own… We generally do not provide collision/comprehensive coverage while you are waiting for a request.”
- Lyft: Same language.
I then called State Farm.
- Agent: “Our Rideshare Driver Coverage replaces your personal policy during Period 1. So you have your full coverage and your $500 deductible.”
Comparison Table: Coverage by Period
| Period | Activity | TNC Coverage | Personal (No Endorsement) | Personal (With Endorsement) |
| Period 0 | App Off | None | Full | Full |
| Period 1 | Waiting | Liability Only | None | Full (Collision included) |
| Period 2 | En Route | Full (High Ded.) | None | Ded. Gap Coverage |
| Period 3 | On Trip | Full (High Ded.) | None | Ded. Gap Coverage |
Step-by-Step Action Plan
- Analyze Your Drive: How much time do you spend waiting? If you live in a rural area, it might be 50% of your time.
- Park While Waiting: If you don’t have the endorsement yet, park the car and turn the engine off while waiting. It reduces collision risk to near zero.
- Get the Endorsement: It is the only way to protect your asset during the “Wait.”
FAQ
What if I’m just checking the app but not “Online”?
If you are “Offline,” you are in Period 0. You are covered by your personal policy.
Does this apply to DoorDash?
Yes. Waiting for an order (even in a parking lot) is Period 1. DoorDash provides NO coverage during this time. You are 100% reliant on your personal endorsement.