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Thinking of driving for Uber/Lyft? Here’s what you need to know!

As Uber and Lyft have grown in popularity, insurance companies have made efforts to meet the demands from drivers for coverage. You might be thinking that your standard auto policy is enough to cover you should you decide to become a driver; however, this is not the case. More often than not, you will need additional coverage known as rideshare insurance. This insurance helps over personal use and coverage for part of the time drivers are signed into the app.

There are some important items to note when looking into rideshare insurance.  Some key takeaways from rideshare coverage are as follows:

  • Rideshare insurance has gaps: Rideshare companies do offer full insurance coverage after you’ve accepted a ride request and while you’re driving passengers, but coverage is “leaner” while you’re waiting for a request
  • You probably need a rideshare policy: Rideshare drivers should look at what’s covered in both their personal car insurance policies and the rideshare company’s insurance. To be completely covered, you’ll most likely need rideshare insurance or a commercial auto policy.
  • Availability is limited: Not all insurance companies offer rideshare insurance policies, nor is the coverage available in all states.
  • You may risk your personal coverage: Even if your rideshare company offers full coverage during all phases of the job—before, during, and after ride requests—your personal auto insurer could drop you if you don’t disclose you’re a rideshare driver

It is important to weigh the above points regarding ridesharing services when you’re thinking of becoming a driver. Your personal auto policy is unlikely to cover any accidents you have during your ridesharing and your insurance policy could very well cancel you if you’ve failed to disclose you drive your vehicle for money. Please remember, even if the ridesharing company offers insurance, coverage is minimal at best.

As ridesharing becomes a popular means of transportation in the Denton area, we hope you understand the risks associated and the importance of obtaining additional coverage to protect you further. At Ramey King, we work with a multitude of companies to find the best auto policy and ridesharing insurance for you and your specific needs.