Scenario: I had just dropped off a passenger and was cruising down Main Street with my Uber app online, waiting for the next ping. A teenager texting on their phone drifted into my lane and sideswiped my Honda, tearing off the mirror and denting the doors. When I called Uber, they said, “You didn’t have a passenger, so we only cover liability,” and my personal insurer said, “You were working, so your policy is suspended.” I was stuck with $3,800 in damages and no one to pay it.
Key Takeaways
- The Coverage Gap: “Period 1” is the time when your app is on but you haven’t accepted a ride. In this phase, TNCs (Transportation Network Companies) provide zero collision coverage for your car.
- Personal Policy Exclusion: Standard personal auto policies have a “livery exclusion,” meaning coverage stops the second the app goes online.
- The 2026 Reality: Insurers now use API data integration with rideshare platforms; they know the exact second you logged in, so lying about “personal use” triggers an immediate fraud flag.
- The Solution: You must have a “Rideshare Endorsement” on your personal policy to bridge this specific gap.
The “Why” (The Trap): The “Available for Hire” Exclusion
The trap exists because insurance companies view risk differently the moment you become “available for hire.” In 2026, the language in your Declarations page likely falls under the “Livery Conveyance Exclusion.”
Essentially, your personal insurer says, “You are a commercial entity now,” but Uber/Lyft says, “You aren’t making us money yet, so we won’t fix your car.”
While Uber/Lyft provide liability (usually 50k/100k/25k) to protect you if you hit someone else during Period 1, they provide no physical damage coverage for your own vehicle. If you hit a pole, or an uninsured driver hits you, you are on your own.
[IMAGE: Diagram showing the coverage drop-off in Period 1 compared to Period 2 and 3]
The Investigation: I Called Them
I wanted to see who actually covers this specific “Period 1” collision risk without forcing a commercial policy. I contacted three major carriers.
1. Allstate (Ride for Hire Endorsement)
I spoke to a local agent who explained their “Ride for Hire” endorsement.
- The Verdict: It’s one of the few that explicitly fills the “deductible gap” too. If you crash in Period 1, your full personal collision coverage applies.
- Cost: About $20/month added to a standard policy.
2. State Farm (TNC Driver Coverage)
State Farm’s approach is the most seamless.
- The Verdict: They simply classify the “app on” time as personal driving. I found this the easiest to understand. There is no confusion about which policy is primary during Period 1—it’s them.
- Cost: Very competitive, roughly $15/month for my profile.
3. Geico (Rideshare Insurance)
Geico replaces the personal policy entirely.
- The Verdict: While excellent coverage, it was overkill for a part-time driver. However, for Period 1, it offers the strongest protection because it is a commercial-grade product.
- Cost: Higher premium, replacing the personal policy entirely.
Comparison Table: Period 1 Protection
| Carrier | Coverage Type | Period 1 Collision? | Est. Cost Increase |
| State Farm | Endorsement | Yes (Full) | +$15/mo |
| Allstate | Endorsement | Yes (Gap protection) | +$22/mo |
| Uber/Lyft | Platform Policy | NO | Included in commission |
| Personal (No Add-on) | Standard | NO (Denied) | $0 (Until you crash) |
Step-by-Step Action Plan
- Open Your App: Go to Account > Insurance in your Driver app. Read the “Period 1” section. Confirm it says “Liability Only.”
- Check Your Personal Policy: Look at your Declarations page for “Rideshare Endorsement.” If it is missing, you are exposed.
- Get a Quote: Call your current agent today. Ask specifically: “Does this endorsement cover physical damage to my car while I am waiting for a request?”
- Save Your Dashcam Footage: If you crash in Period 1, you need proof you were not at fault, as you might be relying on the other driver’s insurance if you lack this endorsement.
FAQ
If I’m not moving but the app is on, am I in Period 1?
Yes. If the app is online and ready to accept a request, you are in Period 1, even if parked.
Can I just turn the app off after the crash and claim it was personal use?
No. In 2026, claims adjusters pull the timestamp logs from the TNCs. If the log shows “Online” at 2:05 PM and the police report says the crash was at 2:05 PM, your claim is denied and your policy cancelled for fraud.
Does my credit card rental insurance cover Period 1?
Almost never. Commercial use is a standard exclusion for credit card travel protections.