Driving for Uber®, Lyft®, or another rideshare service might be an easy way to augment your income, but all those hours on the road also increase your chances of being in an accident. Unfortunately, your personal auto insurance policy probably won’t cover damages that occur while you’re working, so you might be left paying for repairs out of your own pocket. Understanding how your own insurance policy interacts with the coverage offered by the rideshare company will help you plug gaps before you get into a crash.

Rideshare Services & Auto Insurance

The Commercial Activity Exclusion

Personal auto insurance policies are written to cover a normal amount of driving, so most specifically exclude commercial activity. If you cause an accident while driving for Uber or Lyft, your personal coverage probably won’t cover the other party’s damages or repairs to your own vehicle. This is where coverage provided by the rideshare company comes in.

Rideshare Insurance Coverage

Both Lyft and Uber offer some insurance coverage to drivers, but only when the app is on, or you’re on a trip. If you haven’t accepted a ride yet, Lyft offers a maximum of $100,000 in liability coverage, with no collision protection for your vehicle if you’re responsible for the accident.

When you’re on your way to pick up a passenger or already have them in the car, the company provides up to $1 million in coverage, but only if your personal auto insurance includes collision and comprehensive.

Policies You Need

At a minimum, rideshare drivers should carry collision and comprehensive coverage so they can take advantage of the benefits offered by the company. Many insurance companies also offer specialized rideshare policies designed to cover damage caused by underinsured drivers or other situations not included in Uber or Lyft’s policies.

If you’re driving for a rideshare service, let the experienced agents at Siemers Insurance Agency ensure you’re protected against anything the road might throw your way. Their team has been serving Cincinnati, northern Kentucky, and southeast Indiana for over 60 years, offering a broad selection of policies from some of the industry’s leading carriers. Visit their website for a look at their commercial auto insurance policies, get more coverage tips on Twitter, or call (513) 469-8877 for your free quote.