Ridesharing and Car Insurance: What Do I Need to Know?
Ridesharing services like Uber and Lyft are more popular than ever in the United States. They offer a convenient transportation option for users, as well as a potentially lucrative way for drivers to earn extra money.
But something thatâ€™s often overlooked is how ridesharing affects car insurance and what kind of coverage drivers need!
If youâ€™d like to learn more about financial protection for rideshare drivers, keep reading!
Do rideshare companies cover drivers?
In some cases, rideshare companies have insurance in place for their drivers, but this coverage is often limited.
In fact, some ridesharing companies only offer protection for drivers when theyâ€™re driving with a passenger in the car, and once that ride ends, all coverage may stop.
But does a rideshare driverâ€™s personal car insurance cover them?
When youâ€™re using your vehicle to earn an income (in this case, driving passengers for a fee) this is no longer considered personal use, which is what personal auto insurance is meant to cover.
So, the answer is usually NO!
If you make a claim under your personal auto insurance policy for an incident that occurred while you were using your vehicle for ridesharing, your claim will likely be denied.
That means thereâ€™s there may be a â€œgapâ€ between when your personal auto insurance policy and the coverage offered through a rideshare service covers you.
Insurance options for rideshare drivers
Purchasing a commercial auto insurance policy is one of the ways a rideshare driver can help protect themselves from financial losses associated with owning and operating a