Insurance for Rideshare Drivers: Protecting Yourself and Your Passengers
When you offer your rides with Uber or Lyft, you drive your car to earn an income. There are risks during your travels that put you at risk of accidents, injuries, or damage to your vehicle. You should always have the proper insurance so you, your passengers, and your vehicle are protected while you are working. We’ll explain the kind of insurance rideshare drivers need to remain protected while they are on a trip with a rider.
What Makes Rideshare Drivers Need Coverage Different from Others?
Most personal auto insurance plans cannot fully protect you against all the dangers you may face during work for a rideshare company. Personal insurance normally doesn’t protect you if you get into an accident during business driving. Having an extra policy to cover your vehicle matters when driving for Uber or Lyft, to avoid being held financially responsible in case of an accident.
This is why rideshare drivers rely on special insurance coverage:
- Getting Hurt During a Rideshare Job Won’t Be Covered by Your Personal Insurance: Usually, your private insurance company won’t help cover accidents that happen while driving for a rideshare service.
- Uber and Lyft Drivers Protect: As you drive for Uber or Lyft, you are carrying passengers. If you have a car accident, you should be covered for those in your car as well as those in the other vehicle(s).
- Your Rideshare Shift Includes Periods of Waiting: Picking up a passenger and moving the passenger to their destination. All of these situations should be protected by insurance.
What Kinds of Insurance Are Needed for Rideshare Drivers?
Driving for a rideshare service means being insured against different risks. Below are the kinds of coverage that help you remain protected:
Rideshare Insurance as an Add-On
Rideshare coverage is an extra protection you can get with your personal auto policy for your ridesharing work.
Rideshare insurance comes in handy when you are on the road to pick up a passenger and there is an accident.
Liability Insurance
This form of insurance is for damages or injuries you create for someone else in an accident. By law, you must have it to be free from financial liability if you cause any injury or damage.
If your mistake on the road causes an accident and the other person is hurt, liability insurance will cover their medical treatment and other losses.
Collision Coverage
Your losses are covered if you are involved in an accident, no matter who caused it. It lets you afford the cost of repairing or replacing your vehicle.
If your car gets into a collision and ends up damaged, you can get your garage bill covered under collision insurance.
Comprehensive Coverage
If you have comprehensive coverage, you will be protected from theft, vandalism, weather-related damage (such as hail or flooding), and other types of accidents besides those involving a collision.
If, while driving for Uber or Lyft, your car gets stolen or is damaged by a storm, comprehensive coverage will pay for its repairs or replacement.
Uninsured/Underinsured Motorist Insurance
This insurance shields you from the financial problems if you are hit by someone who does not have the correct or any insurance.
Example: If someone else causes an accident and does not have enough insurance, this coverage can be used to pay for the damages.
What Are the Consequences If Your Insurance Is Not Right for You?
If you don’t have the right rideshare coverage and you are in an accident, you might have to pay a lot out of your own pocket. Here are the serious problems that can happen if you don’t have the right insurance when driving:
- Lack of Insurance: You would have to cover costs for repairs, medical care, and lawyers on your own money if there is no insurance.
- Issue with Policy Gaps: Some personal auto insurance companies won’t cover damage that occurs when you drive for rideshares.
- Passengers Are Not Always Fully Safeguarded: In an accident, passengers may not be fully covered without proper coverage for your vehicle.
Understanding How to Become Insured for Rideshare Work
Use these tips to get the right kind of coverage:
Make Sure to Get in Touch with Your Insurance Company:
Call your existing auto insurer to learn if they have insurance options for rideshare. Policies specially made for rideshare drivers are available from different insurance companies.
Add or Buy On-Demand Extra Coverage (For Ridesharing) for Your Car Insurance:
If your personal policy doesn’t cover ridesharing, you can buy a rideshare endorsement for it. This type of insurance secures you in the gaps during Uber or Lyft work.
You Should Think About Getting a Commercial Auto Policy:
If you make ridesharing your main career, a commercial auto insurance policy could be the answer. It is meant to address every part of your ridesharing business.
Take Time to Go Over Your Policy from Time to Time:
Always check your insurance if your driving or rideshare activities change. An example would be if you start driving more shifts or for another rideshare, you should check your policy to see if it needs to be changed.
FAQ: Insurance for Rideshare
1. Can I be protected by my own car insurance if I drive for Uber or Lyft?
Coverage from a regular personal car insurance policy does not apply to accidents that happen when you drive for a rideshare service. Having rideshare insurance is necessary so you don’t risk being underinsured.
2. Are rideshare insurance rates for drivers who don’t drive for work often?
Yes, even if you only drive for Uber or Lyft part-time, you must get specific insurance for those days. Usually, personal insurance does not cover situations that happen in the workplace.
3. Is getting rideshare insurance costly?
Choosing rideshare insurance as an endorsement to your personal insurance is often affordable. It is normal for this type of plan to be $10 to $20 more a month.
4. Do I need to buy separate insurance for my passengers in a rideshare situation?
Yes, rideshare insurance is typically intended to cover passengers when an accident takes place while you’re on the road.
5. How can I check if I am properly insured?
Read through your policy and consult your insurer to confirm that your coverage will last during every stage of being a rideshare driver.
Conclusion
Earning money by driving for Uber or Lyft can be good, but there are some risks involved. Protecting yourself and your passengers requires buying proper insurance coverage. When you are driving on rideshare, have your insurance ready to cover all possible situations. Make sure your insurance is valid and covers you by talking to your provider and you might want to add rideshare-specific insurance just in case.
