Drivers are sometimes offered cash or direct payment for transportation outside Uber or Lyft. The payment method alone does not determine whether a trip is legal. The important questions are whether the transportation service is properly authorized, insured, and operated under applicable state and local rules.
When a private ride may be lawful
A prearranged ride may be lawful when it is provided through an appropriately licensed transportation business or platform, the trip is covered by valid commercial insurance, the driver and vehicle meet applicable requirements, and airport or local operating rules are followed.
When a ride creates serious risk
- Soliciting passengers without the required authorization.
- Accepting an off-app trip while relying only on personal auto insurance.
- Assuming that approval to drive for Uber or Lyft authorizes a separate private transportation business.
- Picking up passengers in restricted airport or transit areas without the required permit.
- Starting a ride outside the system that provides the commercial insurance intended to cover it.
Personal auto policies commonly exclude transportation for compensation. If a crash occurs during an unauthorized trip, the driver may face denied coverage, personal liability, citations, loss of platform access, or other consequences.
Before accepting a private trip
- Confirm the company or cooperative has current operating authority.
- Confirm the specific trip will be covered by commercial insurance.
- Use the authorized dispatch, reservation, or application process.
- Keep the waybill, trip record, receipt, and insurance information.
- Follow airport and local pickup rules.
