Best Rideshare Insurance in Tennessee: Quotes, Discounts (2023)

Rideshare Insurance in Tennessee

Rideshare companies such as Uber and Lyft have been growing more popular in Tennessee over the last few years. If you’re a rideshare driver, it’s important to know that your personal auto policy will not cover the damage that occurs while your vehicle is in “business use.” To make sure you have the right coverage for your car at all times, you need a rideshare insurance add-on to your personal policy. Compare cheap rideshare insurance options on Insurify today!

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Rideshare Insurance Companies in Tennessee

On average, you can expect to pay $164 in monthly insurance premiums if you need a rideshare insurance policy in Tennessee. However, average monthly costs can go as high as $265 and as low as $65, resulting in a whopping $2,400 annual difference. This is why it’s important to shop around and compare car insurance quotes to find the best deal.

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How Rideshare Insurance Works

Your personal auto insurance policy does not cover the damage that occurs while your car is in “business use.” The ridesharing company you work with—also known as a transportation network company or TNC—must provide you with the minimum required commercial auto insurance coverage according to Tennessee state law.

However, the commercial policy your TNC provides you with only kicks in when the damage occurs under specific circumstances, which can result in significant coverage gaps. To make it clear when you are covered by your personal auto insurance and when your TNC insurance policy applies, insurance companies use the following driving “periods”:

• Period 0: Your rideshare app is off. When you are not using your vehicle commercially, your personal car insurance policy protects you and your personal policy’s payout limits and deductibles apply.

• Period 1: You’re waiting for a ride request. As soon as you turn your rideshare app on, your personal auto insurance policy stops providing coverage because you’re now driving your car for commercial use. Your TNC is required to provide some uninsured motorist coverage during this period, but some TNCs may decide to decline this coverage. Plus, it likely won’t be enough to cover your damages in the event of an accident.

• Period 2: You’re en route to pick up a passenger. Your TNC provides you with the minimum required liability coverage for bodily injury and property damage. However, liability insurance only covers the damage that the other driver sustains. You can also expect much higher deductibles—double or triple the amounts in your personal policy.

• Period 3: You’re driving with your passenger in the car. Your TNC policy provides higher liability coverage, but it comes with a high deductible. Some TNCs may provide comprehensive and collision coverage, but if yours doesn’t, then you will still be responsible for the bodily injury and property damage that you sustain.

Whether you provide a rideshare service or work for a delivery company, consider getting a rideshare insurance policy to cover the gaps in your TNC coverage and avoid high out-of-pocket costs.

As a rideshare driver in Tennessee, you can get rideshare insurance as an add-on to your personal auto insurance coverage—also known as the “rideshare endorsement.” Alternatively, you can also get “hybrid” rideshare insurance coverage that will combine your personal auto insurance policy and rideshare insurance into one policy.

If you get rideshare insurance as an add-on, it will fully mirror your personal car insurance policy. For example, if you have full coverage—comprehensive and collision coverage—on your personal policy, you will carry full coverage with your rideshare insurance, too. If you only have liability coverage, your rideshare insurance will be liability-only as well.

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Tennessee Laws on Rideshare Insurance Requirements

All rideshare drivers in Tennessee are required to carry rideshare insurance coverage whenever their app is on, whether you are waiting for a ride request or driving with your passenger in the car. There is no grace period to drive without rideshare insurance if you are using your vehicle commercially, regardless of whether you do it part-time or full-time.

In order to qualify for a rideshare insurance policy—whether a commercial policy from your TNC or a rideshare endorsement—you already need to carry personal-use car insurance since you will inevitably be driving your vehicle for non-commercial use as well.

To comply with Tennessee car insurance laws, you need to carry the following in liability coverage:

• $25,000 in bodily injury liability per person

• $50,000 in bodily injury liability per accident

• $15,000 in property damage liability

Tennessee laws also require you to carry the same coverage limits in uninsured motorist coverage, but you may reject this coverage in writing.

You are entitled to the following liability coverage under your TNC insurance policy when you’re driving your vehicle commercially but don’t have a passenger in your vehicle:

• $50,000 in bodily injury per person

• $100,000 in bodily injury per accident

• $25,000 in property damage

When you have a passenger in your car, your TNC insurance policy is required to provide you with $1 million in liability coverage for bodily injury and property damage. Some TNC companies also provide comprehensive and collision coverage, but it varies from company to company. Be sure to check with yours!

You must let your personal insurance provider know that you’re a rideshare driver, even if you’re only using your TNC policy and are not supplementing it with rideshare insurance. If you don’t inform your insurance provider that you’re a rideshare driver, your provider may refuse to cover claims or even cancel your personal car insurance policy.

You also need to inform your personal insurance provider about any accidents that happened while you were using your vehicle commercially.

Tennessee Requirements for Rideshare Drivers

To become a rideshare driver in Tennessee, you need to pass criminal background and driving record checks. You need to have a valid U.S. driver’s license and vehicle registration. You also need to show that you haven’t been convicted of driving without a valid driver’s license in the last three years or of a serious driving offense—such as a DUI—in the last five years.

If you want to be a Lyft driver or an Uber driver, there are additional requirements you need to satisfy, such as:

• You must be at least 21 years old for Uber and 25 years old for Lyft.

• Your vehicle must satisfy the vehicle requirements.

• You must have had your U.S. driver’s license for at least one year (three years if you’re under 25 years old).

• You must consent to sharing your picture with passengers.

• You must respect the zero-tolerance policy for drugs and alcohol use while driving.

Keep in mind that a rideshare company may still reject your application even if you satisfy all of these requirements.

Filing a Claim After an Accident As a Rideshare Driver in Tennessee

The process you should follow to file a claim after an accident depends on during which driving period the accident takes place. If it happens during period 0, when your rideshare app is off, you need to file the claim with your personal insurance provider. Your personal car insurance policy’s deductibles and payout limits will apply in this case.

If the accident happens while your vehicle is in commercial use, your TNC policy will provide the minimum required liability coverage as well as any comprehensive and collision coverage, but it will likely come with a high deductible—double or triple the amount on your personal car insurance policy.

If you have rideshare insurance coverage, you can use it to close coverage gaps that your TNC policy leaves and lower your deductibles. If you don’t have rideshare insurance coverage and only use your TNC policy, you must still notify your personal insurance provider about the accident.

Find Cheap Rideshare Insurance in Minutes

You can get rideshare insurance in Tennessee either as an add-on to your personal policy or as a hybrid policy that combines both your personal and rideshare coverage into one policy. Whether you’re shopping for rideshare insurance as an add-on or for a new hybrid policy, it’s important to shop around to find the best deal.

Insurify recommends getting at least four quotes from different insurance companies to unlock the best savings. No two car insurance companies weigh factors such as your age, credit score, and vehicle model the same way to calculate your insurance premiums, so it’s important to see what your coverage options are before you commit to one insurance company.

However, shopping around for car insurance can get stressful and time-consuming. You would have to spend hours on the phone or online answering the same questions over and over to get a new quote and then manually compare the quotes you gather to determine which car insurance company is offering you the best coverage at the lowest rates.

Instead, spend five minutes on Insurify’s trusted site answering a few basic questions only once, and get instant access to 10+ rideshare car insurance quotes from the best auto insurance companies in Tennessee and compare all of them in one place. On average, Insurify users save $996 on their annual car insurance policy!