If you drive for Uber, Lyft, Walmart Spark, or other app-based services, a car accident can create unexpected insurance problems. Here’s what Maine drivers need to know:
- Using your personal vehicle for gig work can jeopardize auto insurance coverage
- Insurers may deny claims if business use wasn’t disclosed
- Coverage issues can affect both gig drivers and people injured by them
- Uninsured and underinsured motorist coverage is more important than ever
More Maine drivers than ever are using their personal vehicles for work in the growing “gig economy.” Rideshare and delivery platforms like Uber, Lyft, and Walmart Spark rely on everyday drivers—but many people don’t realize how this type of work can affect their insurance coverage if a crash happens.
Whether you’re driving for one of these services or injured by someone who is, the insurance consequences can be serious and confusing. Understanding these risks before an accident happens can help protect you financially and legally.
Key Issue: Insurance Denials Are Increasing
Many personal auto insurance policies do not automatically cover business use of a vehicle. If a driver didn’t disclose rideshare or delivery activity when purchasing insurance, the carrier may deny coverage after a crash.
Today, insurers frequently ask for the “purpose of drive” when investigating an accident. If the answer involves app-based work that wasn’t previously disclosed, coverage can be denied—even if premiums were paid faithfully.
How This Can Affect You
1. If You’re Driving for an App and Cause a Crash
If you were working at the time of the accident and your insurer denies coverage:
- You may be personally responsible for injuries and property damage
- Lawsuits and financial exposure can quickly follow
2. If You’re Hit by a Gig Driver Whose Coverage Is Denied
If the at-fault driver’s insurer refuses coverage:
- You may need to rely on your own auto insurance
- Property damage may not be covered if you only carry liability insurance
- Injury recovery may depend on your Uninsured Motorist (UM) coverage
3. If You’re a Gig Driver Injured by an Uninsured or Underinsured Driver
This is one of the most dangerous scenarios.
Even if you’ve paid for Uninsured Motorist coverage, your insurer may argue that it doesn’t apply because you were working at the time of the crash.
Real-world example:
A Maine client with $250,000 in UM coverage was struck by an uninsured driver while delivering for Walmart Spark. Despite serious injuries, the insurer denied coverage based on the business use of the vehicle.
This is exactly the kind of situation drivers should be trying to avoid.
Protecting Yourself Before an Accident Happens
The best defense is preparation:
- Confirm whether your auto policy covers rideshare or delivery work
- Consider adding specific endorsements or commercial coverage
- Increase your Uninsured/Underinsured Motorist coverage, even if you don’t do gig work
These steps can protect you if the other driver’s insurance is denied or inadequate.
FAQs
Do I need special insurance to drive for Uber, Lyft, or delivery apps in Maine?
Often, yes. Many personal auto policies exclude business use. Drivers should confirm coverage or add endorsements before driving for app-based services.
What happens if my insurance denies coverage after a crash?
If coverage is denied, you could be personally responsible for damages—or forced to rely on limited alternative coverage options.
Can I still recover compensation if I’m hit by a rideshare or delivery driver?
Possibly, but recovery may depend on your own insurance coverage if the at-fault driver’s policy is denied.
Why is uninsured motorist coverage so important now?
As more insurers deny coverage for undisclosed gig work, uninsured motorist coverage can be the only way injured people recover compensation.
Call Maine’s Personal Injury Lawyers
If you’ve been injured in a crash involving a rideshare or delivery driver—or if your insurance company is questioning coverage—getting clear legal guidance early can make all the difference. A Maine personal injury attorney can review your situation, explain your options, and help protect your rights before mistakes are made.