Thanks to ridesharing apps, getting around town these days is as easy as taking out your phone. If you’ve been thinking about becoming a rideshare driver, you’re probably wondering how car insurance coverage applies to this type of job. Here’s a helpful guide to get you started.

Car Insurance Guide for Rideshare Drivers

Necessary Policies

Your existing car insurance policy may not cover your ridesharing gig. That’s because most providers have exclusions specifically tailored for the commercial use of a vehicle. Ridesharing would typically fall into this category, since you’ll be transporting passengers for a fee. You’ll likely need a separate policy that covers business vehicles.

Both Uber and Lyft provide liability auto insurance if you cause property damage in an accident that you’re at fault for. The companies also supply drivers with protection against uninsured or underinsured drivers. However, this insurance is only in effect when you’re on the clock as a rideshare driver.

Coverages You May Want to Add

Since you’ll drive your own vehicle when working as a rideshare driver, you’ll still need car insurance of your own. Most states require a minimum of liability coverage. This pays for damage and bodily injuries you may cause in an accident. Since you’ll be relying on your vehicle to earn income, an accident can affect your ability to provide for yourself. As a financial safeguard, consider adding collision and comprehensive coverage. Collision pays for damages to your vehicle even if you’re at fault in an accident, while comprehensive involves non-collision claims such as fire, theft or vandalism.

Review Your Policy With an Agent

To ensure you’re fully protected, talk to an experienced insurance agent before becoming a rideshare driver. The best ones will be able to review your existing policy and whether it’s adequate for this unique type of work. 

If you’re considering entering the ridesharing space as a driver, take the necessary precautions to protect yourself, your vehicle, and your passengers.  The knowledgeable agents at Mitchell Insurance Agency LLC can help individuals throughout Texas County, MO and surrounding areas, who want proper coverage as rideshare drivers. Give them a call at (417) 967-2140 for a free car insurance quote. You can also go online to learn about the wide range of carriers they work with to offer budget-friendly coverage.