Many young workers are participating in the ‘gig economy,’ working part-time as personal shoppers, delivery personnel, and rideshare drivers. If you’re considering boosting your income by working for a rideshare company, you probably have a few questions about your auto insurance. The guide below walks you through what you need to know.
How Does Working for a Rideshare Company Affect Your Coverage?
Unlike a traditional taxi company, rideshare drivers aren’t covered by company-wide insurance. Instead, you’ll have to rely on your own coverage, but many personal insurance policies don’t apply when you’re driving for a rideshare company. If you get in an accident while you’re on the job, you’re in the hands of your rideshare company.
Both major rideshare companies Uber® and Lyft® have coverage for personal liability and vehicle damage while you’re carrying a passenger or en route to pick one up. However, if you’re driving with the rideshare app open but haven’t accepted a fare, there’s an insurance gap. Your personal policy won’t apply, but the rideshare company’s policy is scaled down, and usually won’t include collision or comprehensive coverage.
What Add-Ons Should You Consider?
Many major insurers in most states now offer a policy add-on known as a ‘ride-sharing endorsement’ that can help drivers protect themselves. As a plus, these endorsements are usually modestly priced, so you can afford better protection, even if you’re only driving for a rideshare company on the weekends.
Since they’re a relatively new concept, every state and city handles their rideshare legislation differently. Additionally, every insurer will have different criteria depending on your coverage and the state you’re driving in. If you’re planning to drive for a rideshare company, take the time to meet with your insurance agent first. You’ll be able to patch up any gaps in your insurance with their help and drive protected all the time.
Protect your vehicle, other drivers, and yourself with auto insurance brokered through Tim Bryan Insurance in Andalusia, AL. As a State Farm agent, he can help you find reasonably priced policies for your home, car, and business. To learn more, visit his website, or call (334) 222-1460 to get an auto insurance quote.
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