Uber and Lyft drivers have unique needs when it comes to car insurance. In addition to traditional personal liability and full coverage to cover property damage, drivers using their cars to make money have other things to consider.
While carpooling and transporting passengers is certainly covered on your personal policy, ridesharing uses such as picking up passengers for a fee calls for different coverage types. This is considered business use and as such in a different category then your personal policy. So the first coverage gap is exposed.
What does Uber and Lyft insurance cover? This one you will have to do a little research on depending who you are driving for. Some cover from when the app is turned on, however, many cover from when a fare is accepted to the rider being dropped off and the ticket is closed. Some contain an additional coverage gap and only cover when the fare is picked up to when they are at the destination. This creates a gap for when you drive to pick up the fare for business use in your vehicle. Furthermore, with some you must file the claim with your insurance carrier first before theirs would respond.
The summary of all of the above discussion and potential coverage gaps is that is you are driving for a ridesharing company you need to have the correct coverage. A simple personal auto policy on the vehicle used for ridesharing is not adequate.
There are a few options to go about getting the correct coverage:
- A commercial auto policy for the vehicle being used for ridesharing purposes. However, this option can be the more pricey option. However, this still may be the best option depending on the discussion above regarding certain gaps in coverage that could exist for the ridesharing company you are working with.
- More and more insurance companies are offering endorsements to your personal auto policy at economic prices for the vehicle. WTM now has access to several carriers who have this option including Safeco and Foremost Insurance.
- Be sure to discuss with your agent which of these options will be right depending on your situation.
What does and should the endorsements include?
- The endorsement applies to auto for which this endorsement is listed.
- The endorsement is extension of coverages on the policy and applies during such times as when the insured is available to accept requests in the vehicle and ends when the insured driver and covered auto are in a prearranged ride or fare. (Prearranged ride refers to when the driver accepts the request and ends when the rider departs from the personal auto)
Please contact your WTM agent if you have more questions about this or obtaining this coverage.