Ridesharing has become a popular way earn extra money or even a primary source income for many people. However one most important things that rideshare drivers need consider is their car insurance coverage. Traditional auto insurance policies may not cover accidents that occur while a driver is working for a rideshare company so it's important make sure you have right coverage in place.
In this article we'll take a closer look at what rideshare insurance is how it works what types coverage you should consider as a rideshare driver.
What is rideshare insurance?
Rideshare insurance is a type auto insurance policy that's specifically designed for drivers who work for rideshare companies like Uber Lyft. Traditional auto insurance policies may not cover accidents that occur while a driver is working for a rideshare company because they consider it be a commercial activity. Rideshare insurance provides additional coverage that fills this gap.
How does rideshare insurance work?
Rideshare insurance typically works by providing coverage in three different phases a rideshare driver's work:
Phase 0:
This is when driver is not logged into rideshare app is using their vehicle for personal use. During this phase driver's personal auto insurance policy will be in effect.
Phase 1:
This is when driver is logged into rideshare app is waiting for a ride request. During this phase rideshare company's insurance policy may provide some coverage but it may not be enough cover all damages or injuries.
Phase 2:
This is when driver has accepted a ride request is en route pick up passenger. During this phase rideshare company's insurance policy will typically provide coverage.
Phase 3:
This is when passenger is in car driver is en route their destination. During this phase rideshare company's insurance policy will typically provide coverage.
What types coverage should rideshare drivers consider?
Rideshare drivers should consider a few different types coverage make sure they're fully protected:
Liability insurance:
This type insurance covers damage or injuries other people or property if you're at fault in an accident. Rideshare drivers should have liability insurance that meets minimum requirements in their state as well as any additional coverage required by rideshare company they work for.
Collision insurance:
This type insurance covers damage your own vehicle in event an accident regardless who is at fault. Rideshare drivers who rely on their vehicle for their livelihood may want consider adding collision insurance their policy.
Comprehensive insurance:
This type insurance covers damage your vehicle that's not caused by a collision such as theft vandalism or weather-related damage. Rideshare drivers who rely on their vehicle for their livelihood may want consider adding comprehensive insurance their policy.
Uninsured/underinsured motorist insurance:
This type insurance covers you if you're involved in an accident with a driver who doesn't have enough insurance cover damages or injuries they caused. Rideshare drivers may want consider adding uninsured/underinsured motorist insurance their policy protect themselves in case an accident.
Rideshare insurance:
As we mentioned earlier rideshare insurance is specifically designed cover accidents that occur while a driver is working for a rideshare company. Rideshare drivers should make sure they have this type coverage in place protect themselves their passengers.
conclusion
rideshare drivers should make sure they have right insurance coverage in place protect themselves their passengers in event an accident.
