Three phases became the standard way to describe rideshare insurance after Uber- and Lyft-related crashes exposed a gap in coverage: app off, app on waiting for a ride, and ride accepted through drop-off. "Period 1 coverage" came out of that system. It refers to the time when a driver has the app on and is available for requests, but has not yet accepted a trip or delivery.

Today in Virginia, that window matters because liability limits are usually lower in Period 1 than they are once a passenger is picked up. Under Virginia law governing transportation network companies, this period generally requires at least $50,000 for one person's bodily injury, $100,000 per crash, and $25,000 for property damage. Once a ride is accepted, the available coverage is typically much higher.

For an injury claim in places like Norfolk, Virginia Beach, Richmond, or Northern Virginia, Period 1 can affect which insurer pays first, how much coverage is available, and whether there is a dispute between the driver's personal auto insurer and the rideshare company's policy. That can directly shape a personal injury claim, especially when medical bills, lost wages, and vehicle damage exceed the lower Period 1 limits.

This term often comes up when proving liability, identifying all available insurance coverage, and deciding whether additional uninsured/underinsured motorist coverage may be needed.