Sharing your ride as an Uber or Lyft driver? Make sure you’re covered.
Turning your car into a rideshare is an increasingly popular way to make some extra money in your free time. Services like Uber and Lyft are common fixtures in many cities now, and signing up for one of these convenient transportation gigs can add dollars to your wallet. However, if you are involved in an accident while operating a rideshare, you may end up paying big if you aren’t covered properly.
Most ridesharing companies offer insurance coverage for their drivers, but the options are limited and still leave you exposed to risk on the road. Coverage plans from these companies often only cover you while actively driving with a passenger, and leave you on your own between rides or while in route to pick up a rider. If you don’t have a commercial auto policy and are driving a rideshare, you may need to consider strengthening your personal auto coverage since a typical personal auto policy does not provide coverage for rideshare activities.
Luckily, many insurance companies offer rideshare endorsements that typically cost between 10 and 20 dollars per month. The downside is that all rideshare coverage isn’t available in every state, so your options may be limited depending on your location. Follow these easy steps if you’re thinking about or already operating a rideshare:
- Tell your insurance company – Let them know you plan on operating your vehicle as a rideshare. They may have coverage suggestions and other helpful information.
- Ask the rideshare company about their insurance options – Compare policies between companies and figure out what they do and do not cover. For example, both Uber and Lyft offer $1 million liability policies, but have varying collision deductibles.
- Find out if rideshare insurance is available in your state – A rideshare endorsement is cheaper than commercial auto insurance, so make sure to ask your current insurer what they offer and get a quote.
- If rideshare insurance isn’t an option, consider commercial auto policies – Commercial auto insurance can cost more than $100 per month, but gives you comprehensive coverage options. This could be helpful if you are making a lot of trips in your rideshare every month.