If you’re a rideshare driver you’ve probably heard about the “time periods”. You might ask yourself: What do they mean? Am I covered for all time periods? Am I covered for just one? Two? Twelve? Why is this so confusing?!
Well, the good news is that when you insure with Slice you can forget all about “time periods”. With us, you’re covered! Plain and simple: you drive; we pay claims.
That’s the short answer, and ultimately it’s all you really need to know. However, if you’re a rideshare geek like we are, you might want to know a little more. If so, read on! If that’s too boring for you, we get it!
It’s Convention, Not Legal
What defines the Time Periods is not a legal, governmental or insurance industry regulation. It’s simply a convention: one rideshare service began to use it in conjunction with their insurer when negotiating a commercial automobile policy. It was new, convenient and provided terminology where none existed. More and more people began to use it and it just stuck.
History and Definition
The rideshare time periods were created to distinguish between three levels of exposure to risk that occur during rideshare activity.
Time Period One represents the period of time when you log onto a rideshare app until a ride is accepted. It’s considered to be the lowest exposure to loss.
Time Period Two is when you've accepted a fare and are en route to pick up your passenger. This exposure is slightly elevated over Time Period One on the theory that more miles are accrued and more time is spent on the road.
The final segment is Time Period Three, which lasts from the moment you pick-up a passenger until the drop-off point. This is considered the highest risk period.
The Slice Way
The creation of the Time Periods was an inventive solution to the problem of distinguishing between personal and commercial automobile use, but it’s not a perfect solution. Time Period One, for example, does not distinguish between two different exposures - simply being logged onto the app, and being logged onto the app while driving.
Logging onto an app does not violate the conditions of your personal insurance policy. You're not using the vehicle for carrying passengers or property for a fee, nor are you using the vehicle for a purpose not declared to your insurer. In fact, you may not even be using the vehicle!
However, it can be reasonably argued that while you drive in app-on mode, you are operating as a commercial vehicle and would at the very least violate the representations clause in your personal automobile policy. Therefore you require proper commercial insurance from that moment right through to dropping off a passenger.
We believe rideshare drivers should be expert drivers, not insurance technicians. That's why we designed a policy that meets the requirements of drivers, not insurance professionals. To our customers we simply say we will cover you for your rideshare activity. Period. We don't include fancy language about time periods and we don't make you first report claims to your personal insurer. You transfer your risks to us, and we pay your claims.
So how about it - we handle the insurance, you handle the wheel?