Our parents always told us not to get in a car with strangers, and yet the popularity of rideshare options like Uber and Lyft are increasingly changing the face of public and private transportation. As a freelance work option, more people are choosing to fill in the blanks in their free time and finances by becoming rideshare drivers. As Uber, Lyft, and other rideshare options move into urban areas around the globe, issues regarding insurance and safety have come up for both passengers and drivers.

 

What is Rideshare Insurance?

 

Rideshare insurance is one way that drivers for rideshare companies can obtain insurance coverage in case of an accident, injury, or other emergencies. As a contracted employee, rideshare drivers aren’t necessarily covered by their personal auto insurance, nor are they necessarily completely covered by the rideshare company they are working for.

Rideshare insurance is a needed insurance policy coverage for drivers who want to make sure that they won’t be saddled with medical or auto bills because of accidents that occur while they are working for a rideshare company.

Standard rideshare insurance policies cover personal use of a vehicle since the vast majority of people working for companies like Lyft or Uber use their own cars for work. A rideshare insurance policy should also cover drivers for time spent working for the ridesharing company.

Some drivers might find that their personal auto insurance doesn’t cover them for accidents or injuries that occur while they are using their vehicle for commercial or money-making purposes; however, if a driver has a commercial automobile insurance policy, they won’t need to obtain a rideshare insurance policy on top of that.

What Does Rideshare Insurance Offer?

 

Typical rideshare insurance policies offer insurance coverage when you are actively working for a rideshare app. This commonly includes the time you spend in your vehicle after you have accepted a ride request and when you are actively driving your passenger(s) to their destination.

Some of the downsides to rideshare insurance include:

• Gaps in coverage- some rideshare insurance won’t cover you for personal use of your vehicle or has less coverage when you are working but waiting for a ride request.
• Lack of availability- some insurance companies still aren’t offering rideshare insurance policies in some locations around the country. Drivers who don’t have access to rideshare insurance coverage might need to purchase a commercial auto insurance policy in lieu of rideshare insurance, and these policies can be pricey; between $1,200-$2,400 per year or more.
• Your personal auto insurance might be at risk- always check with your personal auto insurer before you start driving for a commercial rideshare company. They might decrease or end your personal auto insurance coverage if you are using your personal vehicle for commercial gain.

Why is Rideshare Insurance Needed?

 

If you are considering driving for a ridesharing service or already are, you know that you are responsible for yourself, your vehicle, and the people you are driving. You need to make sure that in case of an accident or injury during the time you are working for the ridesharing app you are able to recover from that emergency financially.

Like other insurance policies, rideshare insurance is needed to help protect you, your vehicle, and others in case of an unexpected event. Rideshare insurance can cover gaps in your personal auto insurance policy and allow drivers a bit more coverage when using their personal vehicle for ridesharing purposes.

Who Offers Rideshare Insurance?

 

Some insurance companies around the country offer rideshare insurance policies. Most states have at least one option for ridesharing insurance coverage, but the cost of this insurance can vary from company to company and place to place.

Before investing in rideshare insurance, talk to your personal auto insurance policy carrier to see what their policies are. They might be able to offer you rideshare insurance on top of your existing personal auto policy. If they don’t have a rideshare insurance option, see what options they have for filling your coverage gap. Rideshare insurance is an add-on to your existing auto insurance.

Additionally, rideshare companies like Uber and Lyft have started to offer their drivers some rideshare insurance coverage. However, these policies don’t always cover drivers completely during all time during their working hours.

In North Carolina, Allstate is offering rideshare insurance for an additional $15-$20 per year. Farmer’s and Liberty Mutual also offer rideshare insurance options.

To learn more about rideshare insurance, contact our team at Protective Agency at (877) 739-9367, or visit us online at www.protectiveagency.com. Our licensed insurance agents will be happy to answer any questions you have.