Ridesharing services have grown dramatically in the past several years. Although precise numbers are hard to come by, it is estimated there are about two million rideshare drivers in the U.S. alone. It is thought that about two-thirds of these drive for both major providers, Uber and Lyft. If you or someone you know drives for one of these companies, you may feel you are adequately covered by the companies own insurance policies. That could be a mistake.
If you have Uber or Lyft insurance, it generally covers you based on “periods” or “phases”. In Phase 0, when your app is turned off, your personal insurance policy covers you. In Phase 1, when the app is on, your personal policy without ridesharing coverage doesn’t protect you. Uber and Lyft coverage is liability only during this time. Once a request is accepted in Phase 2, the driver is covered fully by Uber and Lyft coverage. This full-coverage continues while a passenger is in the vehicle, or through Phase 3.
To make sure you are fully covered as a rideshare driver, it is recommended you consider additional ride-sharing coverage. This ride-sharing coverage will cover you for any gaps in the ride-sharing company’s coverage and ensures you stay on the straight and narrow with your personal insurance provider. You don’t want to experience an accident and then tell your personal auto insurance company you were driving for Lyft or Uber. The good news is that rideshare insurance is relatively inexpensive. In fact, you’ll likely be able to pay for it with what you earn in one or two rides. That little investment can be worth it in peace of mind alone.
Ride-sharing insurance coverage is far cheaper than commercial insurance, which would likely cost $100 monthly or more. If you drive for a ride-sharing company, let your auto insurance company know. Have them review your personal auto policy and see how they can cover those gaps with a ride-sharing policy.
Driving for a ride-sharing company can be a good way to pick up some extra cash. Some drivers have decided to make driving their full-time job. Whether you drive on the occasional weekend or every day, take the steps to make sure you are not at risk. Contact us for a no-cost, no-obligation auto insurance review today!
Do you have questions about your insurance? Find an insurance agent near you with our Agent Finder
Search for a local agent with our agent finder map.
Read more about KayLynn's background.
Why is the purchase of a life insurance policy on a child a good decision? There are multiple reasons, including helping to ensure their financial future. Learn more in our blog.
There are some simple yet important ways you can make sure your home is ready for the winter weather ahead. Here’s a list of some home maintenance tasks you should consider.
Would your home be covered if it was hit by a meteorite? What about an earthquake, sinkhole, flood or wildfire? We take a look at calamities that your homeowners insurance may and may not cover.
Knowing the difference between replacement value and cash value and keeping an accurate home inventory are critical in a homeowners insurance claim.
Investing in home improvements can pay long term dividends. Some upgrades can even begin to pay you back immediately. Here is a look at some safety and security upgrades you may want to sonsider.
Do you need a real-life, human insurance agent? Perhaps not, but should you want a real-life, human insurance agent? Probably. Here is a look at why more human is more better.
Are you covered from a liability claim should your dog bite a friend, neighbor, relative or stranger? Most renters’ and homeowners’ policies offer some protection, but is it enough? Find out more.
There are many factors that impact car insurance rates. Driving record, number of miles traveled, age, where you live and yes, your credit score. Learn why your credit rating can affect your car insurance rates.
There are many benefits to operating a home-based business, but there may also be risks you are not aware of. Make sure your home business is properly insured.
Once you understand the difference between a “captive” insurance agency and an independent one, you begin to understand the value of independence.