Uber, Lyft, and other ride-sharing services are becoming increasingly popular. If you live in or near a city, you may be considering applying to drive to make some extra cash on the side. Here are some important things to know about how ride-sharing applies to your vehicle insurance.
What is ride-sharing?
Ride-sharing is a competitive service to the taxi and black car market. Companies hire local residents to use their own vehicles and a smart phone to transport passengers needing a ride through the city. A passenger will use the app to hail a driver, and then the app monitors distance and cost which is all paid online.
If I’m a driver, am I protected with my personal auto insurance?
Most auto insurance policies exclude ride-sharing coverage. It’s important to ask your agent if an endorsement is available. If so, it’s a simple process to add ride-sharing for an affordable additional premium to have the coverage you need. In some cases, you may need to apply for a separate commercial policy.
Does the company I’m working for offer insurance protection?
Some ride-sharing services will offer you limited coverage while you’re working. Typically, when the app is turned on, the company will provide a minimum amount of liability protection. It’s often not very high of limits, and it only protects the passengers. It will not provide any protection for your vehicle.
Talk to your agent.
The most important thing to remember is that each ride-sharing company is a little different, and each insurance company has slightly different underwriting rules as well. In order to know the best option, talk to your agent and make sure you know your policy and endorsement options before starting your new ride-sharing adventure.