Insurance Coverage for Uber Drivers

In a relatively short period of time, the concept of ridesharing has become fairly commonplace. Companies that didn't exist a few years ago – Uber, Lyft and Sidecar – are now servicing many parts of the country. Lower fares and faster availability are two of the main reasons people use one of these "transportation network companies".

You can install an app on your smart phone and in a matter of a few taps have a car be sent to pick you up and take you wherever you need to go. You're given the name of the driver as well as the make and model of the vehicle and the arrival time so you can be on the lookout. For parents with college kids living on campus without a car, for seniors who have given up driving or for anyone who doesn’t want to use their car for quick trips, these ridesharing companies have become an important tool.

But have you ever wondered if you’re protected in one of the rideshare cars when you use it? Or if you’ve become a driver for one of these companies (which many people do to supplement their income), have you asked your insurance agent how your personal auto policy will cover you while you’re driving in essence as a taxi driver? Many of us haven’t thought about this and we really need to.

If you own your own car, you’ve got a Personal Auto Policy. But did you know that your auto policy doesn’t cover your use of your car for any business purpose? When your driver is using his or her own car for personal use, they’ve got auto coverage. But once they log into the ridesharing app, things change. And it’s likely that Uber, Lyft and the other ridesharing companies aren’t going to share that information with either you or your driver.

Ridesharing companies like Uber do provide auto insurance for their drivers but the amounts of insurance varies by company and also by where the driver is in the process of driving for the company. (For example, there’s not much insurance coverage while the driver is waiting to get a fare but more insurance coverage available once they’re actually driving). The types and amounts of insurance coverage also vary by state.

So if you’re a driver for one of these other ridesharing companies, what should you do? If you have an accident while driving your own car and picking up passengers for one of these ridesharing companies, one of two things will probably happen. Your insurance company will likely say you have no coverage and then it might also cancel your personal auto insurance policy. How do you manage this so that you can drive (or ride) safely in one of these ridesharing cars?

First, having a great insurance agent on your side is your best bet. One of our insurance agents can help answer your questions, make great suggestions about the new insurance options available to you to make sure you have all the protection you need and then helping you find the best coverage while saving money at the same time. New coverage options are being added all the time that will add coverage to your personal auto policy while you’re driving your car for ridesharing purposes and an educated insurance agent is your go-to resource to finding out which one works the best for you.

We’re always here to help you and we’re just a click or phone call away. Our promise to you is that we will make sure you’re protected whenever you’re using your car.