Like a work truck idling in a driveway before it pulls onto a narrow road, a rideshare driver can be "on the job" without yet having a passenger in the vehicle. In that gap, period 1 coverage means the insurance that applies after a driver has logged into a rideshare app and is waiting for a ride request, but before accepting one. It is the first stage of rideshare activity, and the available coverage is usually lower than in later stages when a trip has been accepted or a passenger is onboard.

That difference matters after a crash. During period 1, the driver's personal auto policy may deny coverage because the vehicle was being used for commercial activity, while the rideshare company's policy may provide only limited liability coverage. That can affect how much money is available for medical expenses, lost wages, and other damages if someone is hurt.

In Maine, rideshare insurance rules are set by the state's Transportation Network Company law, found in 29-A M.R.S. § 1016 (enacted 2015). For period 1, the law requires at least $50,000 for bodily injury to one person, $100,000 per accident, and $25,000 for property damage, unless other coverage satisfies the requirement. After a serious collision, especially on the kind of tight roads shared with larger vehicles, knowing whether the crash happened in period 1 can shape an injury claim, the available policy limits, and who may be financially responsible.