What You Need to Know About Rideshare Insurance

Ridesharing options from companies such as Lyft, Zipcar and Uber are consistently on the rise. As a result, more people are completely opting out of car ownership. When you think of your carbon footprint, and the fact that you probably don’t need a car every single day–the choice is simple.

Plus, you can get a ride–at any time–with the easy tap of a button. Now, you can forget that monthly car payment that sometimes feels like a ball and chain. In addition, it is fun to ride in different cars and talk to friendly drivers while you casually enjoy the view.

No more worrying about maneuvering in and out of traffic, or getting lost and the anxiety that accompanies defensive driving in congested and unfamiliar situations. When traveling, you no longer have to rent a car and pore through Google Maps.

Hire a local Lyft or Uber driver to get you where you need to go. Of course, with anything, it is important to understand insurance options for rideshare drivers. Continue reading to learn more.

Do You Need Rideshare Insurance?

The number one benefit of ridesharing services is the convenience. There is always a driver available. You don’t need to pre-order or pre-schedule.

Just type where you need to go, and you’ll be notified of the price and how long it will take a driver to reach your location. It’s that simple. In the unfortunate event where an accident occurs, insurance will cover the damage.

Essentially, all major auto insurance carriers offer rideshare insurance now.

You can get a quote, while some policies are more straightforward such as paying an additional $6/month above your personal auto insurance policy. Here is the reason: your personal auto insurance policy will not cover accidents that happen when you are driving for a ridesharing service.

Moreover, your insurer may even cancel your policy if they find out you have not disclosed your employment with a ridesharing service. This is why it is important to ask your insurer about their ridesharing insurance rates.

Not to mention, your riders will thank you for helping to keep everything covered. On the other hand, Uber offers $1 million liability per incident; for their drivers. Lyft also offers the same. The only difference is the deductible, where Uber has a $1,000 comprehensive collision deductible–it is $2,500 for Lyft.

Check with Your State

Despite the fact that most auto insurers do offer a form of ridesharing insurance, this might not be available in every state. If your state does not have rideshare insurance, then your next option is to purchase a commercial insurance policy. These normally have higher liability limits.

So, you should shop around for the most trusted and affordable option.

What to Do in an Accident

Once you get rideshare insurance, and if you have an accident, you must first call the police to report it. You will then be asked for your proof of insurance, and you will have to exchange information if another driver is involved.

From that point, you must file a claim even if your ridesharing company will cover your damage. Your insurer will want to know of any accidents, as well. If you don’t tell your insurer, you risk being dropped.

You should also tell your ridesharing company, even if they aren’t covering the accident. But, if they do cover the accident, you can ask them for help to initiate the claims process.

Final Thought

In the end, there are various forms of ridesharing insurance options available even if your company and/or state does not offer specific ridesharing insurance. If you have personal auto insurance, you must still let your insurer know about your driving career. Then, you can have more peace of mind transporting as many passengers as you can handle.