On-demand ride-hailing services, like Lyft® and Uber®, have opened up a world of earning opportunities for many individuals. While setting your own schedule is appealing, there's one factor you may be overlooking — auto insurance. It's vital that you and your vehicle are covered while you're on the road, or you could face astronomical out-of-pocket expenses. Here's a closer look at the ins and outs of coverage for rideshare drivers.

Do Standard Policies Provide Protection?

Traditional car insurance is designed for personal usage, but driving for hire enters into the world of commercial needs. For that reason, most personal policies become ineffective the second you make yourself available on a rideshare app and don't become active again until you're done working.

While many rideshare companies offer some level of insurance to contractors, the protections are typically associated with restricted coverage areas and low monetary limits. As a result, there are gaps between the two plans, which puts you at financial risk if an accident occurs.

What Type of Coverage Is Needed?

Rideshare drivers need auto insurance to cover both the personal and commercial needs of their everyday life. Liability coverage for both property damage and bodily injury should be a priority when choosing a policy. You also want to protect your property from at-fault accidents and theft with adequate comprehensive and collision coverage. Since every state has its own rules regarding minimum coverage, work with an agent to review your current policy and determine your limit needs.

What Are the Best Policy Options?

Purchasing a separate commercial policy is an option but carrying two full policies isn't cost-effective for most individuals. Thankfully, insurance providers have caught up with the unique needs of the ride-hailing industry. For instance, State Farm® offers Rideshare Driver Coverage as a policy add-on. The endorsement extends many of the coverage areas of a driver's current policy to when they're operating as a professional transporter.

If you're thinking about ridesharing as a source of income, protect yourself with the help of State Farm Agent Bruce Richardson in Mooresville, IN. Bruce has successfully worked with drivers across Morgan County to help them find auto insurance policies that cater to their specific circumstances. From rideshare coverage to standard car policies, request an insurance quote today by contacting the agent online or at (317) 831-3500.