Can a South Carolina rideshare driver’s personal insurer deny underinsured motorist coverage while the driver is working through a rideshare app? It may be possible when the driver’s owner’s policy contains an exclusion that applies to the loss. South Carolina law permits certain exclusions while a transportation network company driver is logged onto a digital network or providing a prearranged ride, but the statute does not automatically erase every form of coverage from every policy.
Contact Hammack Law Firm to discuss a South Carolina rideshare insurance question.
The answer depends on the policy language, the driver’s app status, the facts of the collision, and which insurance policy is being asked to pay. A rideshare driver should not assume that a denial is correct simply because the driver was logged in, or that a personal policy or a rideshare company’s policy provides every type of protection.
What does South Carolina law say about a rideshare driver’s personal policy?
South Carolina Code section 58-23-1625 addresses exclusions while a transportation network company driver is logged onto a digital network or providing a prearranged ride. The provision applies to the owner’s automobile insurance policy and expressly lists uninsured and underinsured motorist coverage among the types of coverage an insurer may exclude.
That is an important starting point, but it is not the same as saying that every personal insurer automatically denies every claim involving a rideshare vehicle. The statute permits an insurer to exclude coverage. Whether a particular claim is excluded still requires review of the policy language, endorsement language, and facts surrounding the crash.
- Logged on and available: The driver is signed into the rideshare network and waiting for a request.
- Prearranged ride: The driver has accepted a ride or is providing transportation arranged through the network.
- Owner’s policy: The personal automobile policy connected to the vehicle may contain a rideshare-related exclusion.
- Express policy terms: The insurer’s position should be compared with the actual exclusion and its definitions.
Section 58-23-1625(B) recognizes that coverage may be provided by contract or endorsement. Section 58-23-1625(C) addresses claims that are expressly excluded under the policy. The policy language and endorsements therefore matter alongside the statute.
Can an insurer deny UIM coverage while a driver is logged into Uber or Lyft?
Possibly, but not simply because the driver used a rideshare app. South Carolina Code section 58-23-1625(A) permits an insurer to exclude uninsured and underinsured motorist coverage under the owner’s policy for a loss or injury occurring while a TNC driver is logged onto the network or providing a prearranged ride. The policy must still be reviewed to determine whether it contains an applicable exclusion and what that exclusion covers.
Underinsured motorist, or UIM, coverage is policy-specific. South Carolina’s UIM provisions address whether the coverage is offered and selected, while the TNC provisions address UM requirements. Whether UIM exists under a particular policy depends on the policy, selection, endorsement, and applicable exclusions.
When a rideshare driver’s own policy is involved, the relevant questions include:
- Was the driver logged into the rideshare network at the time of the collision?
- Had the driver accepted a ride or begun a prearranged trip?
- Which policy and endorsements apply to the vehicle?
- Does the personal policy exclude UM, UIM, or other coverage during rideshare activity?
- Is the claim being made under the driver’s policy, the at-fault driver’s policy, or TNC insurance?
South Carolina Code section 58-23-1625(D) addresses cooperation among the TNC and potentially responsible insurers, including the exchange of precise log-on and log-off times and descriptions of applicable coverage, exclusions, and limits.
How are UM, UIM, and rideshare company coverage different?
Uninsured motorist coverage, underinsured motorist coverage, and TNC insurance can sound similar because all may be discussed after a crash. They are not interchangeable. The TNC provisions specifically address UM coverage during certain rideshare periods. UIM coverage may depend on the policy’s terms, selection, endorsements, and any applicable exclusions.
| Coverage | Important rideshare question |
|---|---|
| Uninsured motorist, or UM | Does the applicable owner’s or TNC policy provide the required UM coverage? |
| Underinsured motorist, or UIM | Was UIM selected, and does a rideshare exclusion apply to the claim? |
| TNC insurance | What coverage applies during the driver’s logged-on or prearranged-ride period? |
Section 58-23-1630 addresses TNC coverage requirements, including UM. It does not mean that UIM is automatically included in every TNC policy.
What policy language should a rideshare driver look for?
A rideshare driver reviewing a denial or evaluating coverage should review the policy language, endorsements, rideshare-related exclusions, app log-on and log-off records, and the coverage descriptions supplied by the insurer or TNC.
Pay particular attention to whether the exclusion applies while the driver is logged in and waiting, while providing a prearranged ride, or under another policy-defined period. The policy may define those terms differently or add an endorsement.
Frequently asked questions about South Carolina rideshare UIM coverage
Does South Carolina automatically remove UIM coverage when a driver logs into a rideshare app?
No. Section 58-23-1625 permits an insurer to exclude certain coverage, including UM and UIM, during specified rideshare periods. The driver’s policy and endorsements must be reviewed to determine whether an express exclusion applies.
Is UIM coverage required in every South Carolina rideshare policy?
No. South Carolina’s UIM provisions address optional UIM coverage, while the TNC requirements specifically address liability insurance and UM coverage. Whether UIM exists under a particular policy depends on the policy, selection, endorsement, and applicable exclusions.
Does rideshare company insurance include UIM coverage?
Not necessarily. South Carolina’s TNC statute specifies certain liability and UM requirements for logged-on and prearranged-ride periods. UIM coverage may depend on the TNC policy’s terms and any applicable contractual provisions.
What if the other driver had insurance, but not enough to cover the injuries?
That may raise a UIM question rather than a UM question. The available liability limits, the injured person’s damages, and the terms of any applicable UIM coverage all matter. A rideshare-related exclusion may also need to be reviewed if the claim is being made under the driver’s owner’s policy.
Talk with Hammack Law Firm about your South Carolina rideshare coverage questions.
With over 25 years of legal experience, Paul Hammack provides his clients with a level of trial expertise and strategic insight rarely found in personal injury litigation. Having spent the first eight years of his career working within major insurance defense firms across Georgia and South Carolina, Paul gained an intimate understanding of the “other side’s” playbook. This insurance industry background serves as a unique differentiator for his clients; he knows exactly how insurance carriers evaluate risk and what motivates them to pay top dollar for a claim.
In 2008, Paul founded Hammack Law Firm to move away from the “plaintiff mill” model and focus on building personal relationships with those he represents. As a seasoned litigator, he has tried dozens of first-chair cases to verdict, specializing in high-stakes litigation involving catastrophic injuries and complex truck accidents. His dual-state practice allows him to provide aggressive representation across both South Carolina and Georgia, ensuring victims of negligence receive the maximum financial compensation possible regardless of which side of the state line the accident occurred.
Paul’s commitment to excellence is reflected in his record of significant achievements, including a $10 million tractor-trailer wrongful death settlement and a $3.9 million moped-versus-truck recovery. His credentials and bar admissions in both South Carolina and Georgia underscore his deep roots in the regional legal community. Beyond the courtroom, Paul is a dedicated advocate for his local community, contributing his time and resources to organizations such as the United Way, Red Cross, and Hands On Greenville, all while working to make South Carolina a safer place for everyone.
