The word Taxi is almost outdated in 2018. These days, you ask for an “Uber” or a “Lyft” when you want a ride somewhere. These ridesharing companies have fundamentally changed the way that consumers think about travel. They have also changed the unemployment market because becoming a rideshare driver is incredibly easy. Not only that, but rideshare drivers to get set their own hours, which is a major perk for a lot of people. Unfortunately, a lot of these new drivers are overlooking some things that more traditional jobs offer. Most notably–insurance.
Many new rideshare drivers find themselves turning to Google to ask the same question: Do I need special insurance for Uber or Lyft? In short, yes you do. You do even if you have a normal car-insurance policy already. Since driving for a rideshare company is technically work, your personal car insurance policy won’t cover you if you’re on the clock. That’s why you need a special ridesharing insurance policy!
So what is a ridesharing policy? Well like any type of insurance policy, coverage amounts and type vary by policy. In general most ridesharing policies offer coverage when you have a passenger in your car and once you have accepted a ride request. This creates for a unique situation, because depending on what you’re doing your coverage will be switching between personal and rideshare.
Think of it this way, when you have accepted a ride, you are now on the clock. That means from the moment you click accept, to the moment your passenger gets out of your car your ridesharing policy is covering you. However, if you are waiting for a ride, or are driving someone around without the app on. Then your personal policy is what will cover you. It’s important to understand which policy is covering you when, because it’s very likely that you will have different amounts of coverage between the two different policies.
Another important thing that every rideshare driver needs to do, is to let the insurer that holds their personal car-share insurance policy know that you are now a rideshare driver. While having a rideshare insurance policy is crucial, you are most likely using your personal car for work, which means it could affect your personal policy.
If you don’t let your insurer know that you are a rideshare driver, they might drop your policy, leaving you without personal car insurance coverage. In many states that means you won’t legally be able to operate your vehicle.
While Uber and Lyft both offer their full-time drivers insurance coverage, it is worth talking with another insurer to see what their ridesharing policies are like. Oftentimes the insurer that holds your personal car-insurance policy will happily add on a rideshare policy for a great deal.
If you are a rideshare driver, or are thinking about becoming one, we encourage you to reach out to TGS Insurance to learn more about a ridesharing insurance policy. The staff at TGS are experts in the car-insurance industry and are always willing to work with you to find the right policy for your lifestyle, and your wallet. It can’t hurt to talk! Visit www.tgsinsurance.com to learn more.