Rideshare Insurance: Should I Get It?
Are you working as a Lyft or Uber driver? Are you considering giving it a try to earn extra income from it? If you answered “yes” to either question then you might want to check your auto insurance policy to see if it will cover you if you were ever involved in a car accident while transporting a customer.
A question that comes up a lot is should I carry rideshare insurance or will any liability insurance do? We are going to look at what rideshare insurance is and what the benefits would be so you can make an educated decision for yourself.
What is Rideshare Insurance?
Rideshare insurance doesn’t come as part of a standard auto insurance policy. It is considered an add-on to your current policy. If you drive for any rideshare company you should consider purchasing rideshare insurance as an added protection on top of your current policy. Rideshare insurance is often referred to as Transportation Network Company (TNC) coverage. This insurance covers drivers when their company’s or personal auto policy might not cover them in a motor vehicle accident.
Coverage Provided by Rideshare Insurance
There isn’t much that is different in ridesharing insurance than your personal policy. It covers you with underinsured/uninsured motorists, property damage liability, bodily injury liability, MedPay, comprehensive and collision. The difference comes into play when there is an accident.
There are three categories for rideshare driving:
• App is activated and you are waiting for a passenger
• Matched with a passenger and are traveling to pick them up
• The passenger is riding in your vehicle
Each category has limitations on coverage that is provided by rideshare the insurance you add to your auto policy.
Purchasing Rideshare Insurance
If you decide to purchase rideshare insurance, notify your insurance company that you work as a rideshare driver. Determine if there are any gaps between your personal auto insurance and coverage offered by Uber or Lyft. If there are any gaps then as your insurance company if you need to buy a commercial policy.