Yes, any rideshare driver requires a special insurance coverage because of the heightened risk of an accident on the job.
The ability to draw your own schedule and then make extra money as a ride share driver sounds very enticing. You could even drive a company vehicle to avoid adding extra stress to your own car. Anytime you’re driving, being on the road implies risking the safety of you and any passengers in your vehicle. The risk heightens for Uber, Lyft, and other rideshare company drivers for reasons below:R
- They may actually be using their personal vehicle for commercial purposes.
- They get on the road more frequently, which increases their chances of an accident and the driver being susceptible to fatigue from long hours.
- They are responsible for medical and damage expenses for both themselves and passengers should an accident happen.
- The risk of a commercial lawsuit is increased.
Personal vehicle insurance doesn’t often cover any incidents that happen while you’re doing your ridesharing work. Your policy may even get canceled if you forget to let your insurer know of its use for ridesharing. Rideshare insurance should cover personal use and adds coverage when drivers are signed into the app, but it sure has gaps.
Irrespective of whether or not you own the vehicle you drive for work, every vehicle driven in the United States requires insurance. If you’re a rideshare driver or are thinking of becoming one, you will need to make sure you’re covered under the appropriate insurance.
What do Rideshare Companies have to Offer?
Both the Uber and Lyft offer insurance for their drivers,the same with some other rideshare companies, but it is limited depending on whether the driver is waiting or providing a ride. Most drivers depend on their personal policy and the company’s policy at different times. Basic rideshare insurance is often covered under periods 0-3:
- Period 0: App is off. At this point, you’re not providing rides and you are covered by your personal policy.
- Period 1: App is on and you are waiting. While waiting for a ride request, your personal policy will usually not cover you without an endorsement from your ridesharing company. Uber and Lyft provide small quantities of liability coverage at this stage.
- Period 2: You’ve accepted a request. Once you have accepted a request and you are on your way to pick up your riders, the rideshare company’s policy then fully covers you.
- Period 3: You’ve picked up your passengers. While driving passengers, you are also fully covered by the rideshare company.
A wide array of car insurance providers give insurance to rideshare drivers. It can even be included to an existing policy so long as you fully disclose your position. If you already own a commercial auto insurance policy, you do not require separate rideshare coverage. If you drive in a state that doesn’t give a rideshare policy, you’ll need to buy a commercial insurance policy, which can be expensive, to stay fully covered.