Kentucky’s Gig Driver Insurance Protections
Kentucky law now requires rideshare and delivery platforms to maintain specific insurance coverage for drivers on their apps. If you were injured in a crash involving an Uber, Lyft, DoorDash, GrubHub, Uber Eats, or Amazon Flex driver, understanding these coverage tiers is essential to your claim.
Kentucky’s Transportation Network Company (TNC) law under KRS 281.630 through 281.655 and the gig worker protections under KRS 365.532 require rideshare and delivery platforms to carry insurance that covers drivers during different phases of app usage. Coverage ranges from $50,000/$100,000/$25,000 when a driver is logged on and waiting, up to $1,000,000 when actively transporting a passenger or delivering an order. These protections closed a dangerous gap where drivers were working but had no adequate insurance.
The Three Phases of Gig Driver Insurance Coverage
Insurance for rideshare and delivery drivers changes based on what the driver is doing at the moment of the crash. Kentucky law, along with 601 KAR 1:113, establishes three distinct phases:
Phase 1: App On, Waiting for a Request
The driver is logged into the app and available to accept rides or deliveries, but hasn’t accepted one yet. During this phase, the TNC or delivery platform must maintain:
- $50,000 per person for bodily injury
- $100,000 per accident for bodily injury
- $25,000 per accident for property damage
- Basic reparation benefits (PIP) under KRS 304.39-020
- Uninsured and underinsured vehicle coverage
This is the riskiest coverage gap. The driver’s personal auto policy may exclude commercial activity, and the platform’s Phase 1 coverage is relatively low. If a driver causes a serious crash while waiting for a request, available coverage may be limited.
Phase 2: En Route to Pick Up a Passenger or Deliver an Order
Once the driver accepts a ride or delivery and is heading to the pickup location, coverage increases significantly. The TNC or delivery platform must maintain at least $1,000,000 in third-party auto liability coverage, along with:
- Uninsured/underinsured motorist coverage per KRS 304.39-320
- PIP benefits under KRS 304.39-020
- Contingent comprehensive and collision coverage (if the driver has it on their personal policy)
Phase 3: Passenger in the Vehicle or Delivery in Progress
During an active ride or delivery, the platform provides its highest level of coverage:
- At least $1,000,000 in third-party liability
- Uninsured/underinsured motorist coverage
- PIP benefits
- Contingent comprehensive and collision coverage
Critical Rule: Platform Pays From the First Dollar If Driver Coverage Lapses
Under 601 KAR 1:113, Section 3(6), if a gig driver’s personal insurance has lapsed or doesn’t provide required coverage, the platform (Uber, Lyft, DoorDash, etc.) must provide the required coverage beginning with the first dollar of the claim and has the duty to defend. This prevents crash victims from falling through the cracks when a driver’s personal policy has a gap.
How This Applies to Specific Platforms
Uber and Lyft (Rideshare)
Both Uber and Lyft follow the three-phase coverage model. Phase 1 provides $50K/$100K/$25K in liability. Phases 2 and 3 provide $1,000,000 in liability plus UM/UIM and contingent comp/collision. Both platforms carry a $2,500 deductible on contingent collision coverage. If you were injured as a passenger, pedestrian, or another driver, your coverage depends on which phase the driver was in. See our rideshare accident page for more detail, or our Lyft-specific accident page.
DoorDash, GrubHub, and Uber Eats (Delivery)
Delivery platforms follow the same general framework, but with some differences. Delivery drivers don’t carry passengers, so the risk profile is different. However, the same three-phase coverage applies: lower coverage while logged on and waiting, higher coverage during an active delivery. If a delivery driver causes a crash while actively delivering an order, the platform’s $1,000,000 liability policy should be available.
Amazon Flex
Amazon Flex drivers operate as independent contractors using personal vehicles. Amazon provides contingent commercial coverage during active deliveries, but gaps exist during Phase 1 (app on, waiting). If you were hit by an Amazon Flex driver, see our Amazon delivery vehicle accident page for more on how Amazon’s insurance layers work.
Your Own Insurance Protections Under Kentucky Law
Regardless of the gig platform’s coverage, Kentucky law provides you with separate protections:
- PIP benefits — Your own insurer pays up to $10,000 in medical bills and lost wages under KRS 304.39, regardless of fault
- UM/UIM coverage — If the at-fault driver’s policy is insufficient, your uninsured/underinsured motorist coverage under KRS 304.39-320 can supplement your recovery
- Tort threshold — Once your injuries exceed Kentucky’s threshold (medical bills over $1,000, broken bone, or permanent injury), you can step outside no-fault and pursue a full claim against the at-fault driver and the platform
If your crash happened in Lexington, our Lexington Uber accident and Lexington Lyft accident pages cover Fayette County-specific information. For Louisville-area crashes involving any gig platform, call us at (502) 888-8888. We also handle Turo rental car accidents and traditional rental car crashes.
Which insurance applies depends on what the driver was doing at the exact moment of impact. The difference between Phase 1 ($100,000 max) and Phase 2 ($1,000,000) can mean hundreds of thousands of dollars in available coverage. At Sam Aguiar Injury Lawyers, we reconstruct the timeline of the crash to determine the correct coverage phase — and we pursue every available dollar. With our Bigger Share Guarantee®, you always get more.
Frequently Asked Questions
What is KRS 281.655 and how does it protect me after a rideshare accident?
KRS 281.655 is Kentucky’s Transportation Network Company statute. It requires rideshare companies like Uber and Lyft to maintain specific insurance coverage for their drivers during different phases of app usage. Phase 1 (app on, waiting) requires $50,000/$100,000/$25,000 in liability. Phases 2 and 3 (en route to pickup or during a ride) require at least $1,000,000 in liability coverage, plus UM/UIM and PIP benefits.
Does Kentucky law require insurance for DoorDash and Uber Eats drivers?
Yes. KRS 365.532 and the broader TNC framework extend insurance requirements to delivery drivers operating through app-based platforms. The three-phase coverage model applies: lower coverage while logged on and waiting, $1,000,000 in liability during active deliveries. If the driver’s personal coverage lapses, the platform must cover the claim from the first dollar.
What if the gig driver’s personal auto insurance denies my claim?
Under Kentucky regulation 601 KAR 1:113, if a gig driver’s personal insurance has lapsed or doesn’t cover the accident, the platform must provide the required coverage from the first dollar of the claim. The platform cannot require that a personal insurer first deny the claim before its own coverage applies.
How do I know which coverage phase the driver was in when the crash happened?
The rideshare or delivery platform’s app logs show exactly what the driver was doing at the time of the crash — whether they were logged on and waiting, en route to a pickup, or on an active ride or delivery. Your attorney can subpoena these records from the platform to establish the correct coverage phase.
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