The "Claim Denied" Checklist
- ▸ The Rideshare "Gap": If you crash while waiting for a passenger (App On), your personal policy denies it, and Uber/Lyft won't fix your car.
- ▸ The "Pizza Problem": Food delivery (DoorDash) often has ZERO collision coverage. If you crash with the wings, you pay for the repair.
- ▸ The Track Day Trap: The "Untimed Event" loophole is dead. If you are on a "surface designed for racing," you are uninsured.
- ▸ The Unlisted Roommate: If you live with someone and don't list them, their crash is denied. Period.
Your insurance policy is a contract. The first 5 pages tell you what is covered. The next 25 pages (The "Exclusions" section) tell you what isn't.
Most drivers never read those 25 pages until they get a denial letter. In 2026, with the rise of Gig Work and Turo, these exclusions are catching more people than ever.
Part 1: The Rideshare Gap Map (Uber/Lyft)
Driving for Uber or Lyft splits your coverage into three distinct "Periods." The danger is Period 1.
Period 0: App Off (Personal Use)
SafeYou are driving to the grocery store. The Uber app is closed.
Coverage: Your Personal Policy (100%).
Period 1: App On (Waiting for Request)
High RiskYou are cruising around, waiting for a ping. You have not accepted a ride yet.
Your Personal Policy: DENIED (Commercial Use Exclusion).
Uber/Lyft Policy: Liability ONLY. They will pay if you hit someone else, but they will NOT pay to fix your car.
Period 2 & 3: En Route / Passenger in Car
CommercialYou accepted a ride or have a passenger.
Coverage: Uber/Lyft Commercial Policy ($1M Liability + Collision with $2,500 deductible).
The Solution: "Rideshare Endorsement"
For about $15/month, you can add a "Rideshare Endorsement" to your personal policy. This fills the gap in Period 1, giving you full collision coverage while you wait for a request. Without it, you are basically driving uninsured in Period 1.
Part 2: The "Pizza Problem" (DoorDash/GrubHub)
If you think Rideshare coverage is bad, Food Delivery is worse.
Unlike Uber/Lyft, many food delivery platforms provide zero collision coverage for your vehicle at any stage.
- The Scenario: You are delivering a pizza. You slide on ice and hit a tree.
- Your Personal Policy: DENIED. "Delivery of goods for a fee" is a standard exclusion.
- The App's Policy: DENIED. Most only cover "Third Party Liability" (damage you do to others). They rarely cover your own car.
- The Result: You owe the bank $20,000 for a totaled car you can't drive.
Part 3: The Track Day Trap (HPDE)
Ten years ago, there was a loophole: "If the event is untimed and educational, it's covered."
That loophole is dead.
In 2026, almost every policy typically excludes:
"Any vehicle located on a surface designed for racing, or used for the purpose of practicing, preparing for, or participating in a competitive or organized racing or speed contest."
The phrase "surface designed for racing" is the killer. Even if you are driving 20mph behind a pace car, if you are on a racetrack, your policy is void.
Solution: Buy "Track Day Insurance" (e.g., Lockton, Hagerty) for the day. It costs ~$200 and covers the car fully on the track.
Part 4: The "Unlisted Driver" Step-Down
"Permissive Use" usually means you can lend your car to a friend, and they are covered. But there are major exceptions.
The "Roommate Rule"
If someone lives at your address/household, they MUST be listed on your policy. If they are not listed (to save money) and they crash your car? Denied. Insurers assume household members have regular access.
The "Step-Down" Clause
In states like CA and FL, some budget policies have a "Step-Down" provision. If a friend drives your car, your coverage drops from your selected limits (e.g., 100/300k) to the State Minimum (e.g., 15/30k). You are on the hook for the rest.
Part 5: Business Use (The "Errand" Trap)
Personal Auto Policies are for... personal use. If you use your truck to haul lumber for your carpentry business, or your sedan to drive clients to houses (Realtor), you are crossing the line.
If you are in an accident and the other driver mentions "He was in his work uniform and had a ladder on the roof," the claims adjuster will investigate. If they find you use the vehicle primarily for business, they can deny the claim for "Material Misrepresentation."
Solution: Get a "Business Use" endorsement. It's cheap and protects you.
Part 6: FAQ - The Exclusion Expert
Q: Does my insurance cover a Turo rental?
Usually. Most personal policies extend coverage to a "Short Term Replacement Vehicle" (rental). However, Turo is often classified as "Peer-to-Peer Car Sharing," not a "Rental Car Company." Some insurers exclude Peer-to-Peer specifically. Always check your Personal Auto Policy (PAP) definitions.
Q: Does Turo cover my car if *I* am the host (renting it out)?
NO. Your personal policy definitely excludes renting your car to others. You must rely entirely on Turo's protection plan, which has its own deductibles and limitations.
Q: I customized my van (Camper conversion). Is it covered?
Only up to $1,000 usually. Standard policies cover the "Factory Equipment." If you add $10,000 of cabinets and solar panels, you need a "Custom Parts & Equipment" (CPE) endorsement, or you'll get $0 for the upgrades.
Q: What is "Excluded Driver"?
If you have a high-risk driver in your house (e.g., a teen with DUIs), you can sign an "Excluded Driver" form to keep your rates low. BUT, if that person ever drives your car (even once, even in an emergency) and crashes, there is Zero Coverage.
Q: I lied about my "Garaging Address" to save money.
This is called "Rate Evasion" (fraud). If you live in Brooklyn but list a generic address in Ohio, and you crash in Brooklyn, they will investigate. If they prove you live in Brooklyn (utility bills, GPS data), they will deny the claim and cancel your policy retroactively.
Q: Does insurance cover intentional acts?
Never. If you get road rage and ram someone on purpose, liability coverage is void. You are personally liable for the lawsuit, and likely facing criminal charges.
Q: Off-roading coverage?
Many standard policies exclude "Off-Road Use." If you take your Jeep to a dedicated 4x4 park and roll it over, it might be denied. Stick to "public roads" unless you have a specific off-road policy.
Q: Snow Plow attached to my truck?
If you plow your own driveway? Covered. If you accept $50 to plow your neighbor's driveway? Denied (Business Use).
Q: What if I miss a payment?
If your policy cancels at 12:01 AM on Tuesday and you crash at 12:05 AM? Denied. There is no grace period for cancellation. You are uninsured the second the clock strikes.
Q: Theft by a household member?
If your son takes your car without permission and crashes it, you generally cannot claim "Theft" to avoid liability, because family members are assumed to have implied permission (unless you press criminal charges against your son).
Q: Driving in Mexico?
Denied. US policies typically cover USA, Canada, and Puerto Rico. They rarely cover Mexico. You must buy a separate "Mexico Tourist Auto Policy" before crossing the border.
Q: "Full Coverage" on a 20-year-old car?
Not an exclusion, but a waste. If the premium + deductible > car value, you are insuring... nothing. Drop Comp/Collision and bank the savings.
Are you driving naked?
Don't wait for a crash to find out you have a coverage gap. Review your policy for these exclusions today.
Sources: National Association of Insurance Commissioners (Rideshare Insurance), Track Night in America (Insurance FAQ).
