What Car Insurance Do I Need For Ride Sharing?

If you had asked someone a decade ago what the next fad in transportation would be they would probably have started talking about high-speed trains and flying cars. Very few people envisioned the boom that ride sharing services have experienced over the last ten years. The reality is that ride-sharing services are here to stay. As a result, a lot of people are looking to get into the ride-sharing business–but where should you start?

It’s easy to sign up for a ride-sharing service like Lyft or Uber, but many people don’t take the time to properly protect themselves, and their finances. If you are considering becoming a driver for a ride-sharing service, there are three key things you should consider before getting involved.

Environmental Impact
One of the biggest advantages of ride-sharing services is the positive impact that they have on the environment. Everyone knows that the more cars on the road, the more emissions are released into the atmosphere, which contributes to global warming. By sharing rides, less cars are on the road, which means less emissions are being released. It’s a win-win for everyone.

In fact, the TSRC conducted a five-city study in which they found that users of one car-sharing service were able to reduce greenhouse-gas emissions by an average of 10%. Not only that, but the study also found that approximately 28,000 fewer cars were on the road in cities that utilized that ride-sharing service.

State Laws
While many people associate the term “ride sharing” with Lyft and Uber, there are also a number of peer-to-peer ride-sharing services that are becoming more popular around the country. Peer-to-peer renting can often offer a wider variety of cars, at more affordable prices. However, peer-to-peer services are often regulated by various state laws, that differ greatly depending on the state that you are in.

For example, many states include laws that impose a cap on the amount of money a person can make from renting out their personal vehicle. Other states, have no cap. If you are interested in becoming involved with a peer-to-peer ride-sharing service it is worth taking the time to research the laws that are in place in the state you are in.

Insurance Coverage
No matter where you live, if you are interested in becoming involved with a ride-sharing service you need to take the time to do an inventory of your current insurance policies.

For example, even though you likely already have a car insurance policy, is it enough to cover you and passengers in the event of a crash? Many ride-sharing companies offer insurance policies if you rent a vehicle from them, but it often is not for a reasonable amount of coverage.

If you are considering becoming involved with a ride-sharing service, it’s worth discussing your options with an insurance professional before you begin driving. The staff at TGS Insurance are knowledgeable, and always happy to help! Visit www.tgsinsurance.com to learn more.