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!
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