The number of adults who use ride-sharing has more than doubled from 15% in 2015 to 36% in 2018. As the demand continues to increase and the “gig economy” grows, more people are earning extra income as ride-share drivers. If you’re among those who are considering this popular “side hustle” option, having the proper auto insurance is a must. Here is what you need to know about coverage to protect you, your vehicle, and your passengers.

What Type of Auto Insurance is Needed?

Your personal auto insurance will probably not cover your ride-sharing operation. That’s because the activity is considered commercial and may need a policy designed for that type of vehicle. At the very least, you should have liability insurance, which pays for damages and medical expenses of other drivers and your passengers in an accident that is caused by you. 

If you’re financing or leasing your vehicle, your lender or lessor will require collision and comprehensive coverage until the loan is paid off or the lease agreement ends. Collision pays for the damages if your vehicle runs into another car, building, or other structure. Comprehensive covers damage caused by non-collision accidents such as theft, vandalism, fire, and weather-related incidents.

What Policies Should You Consider Adding?

Unfortunately, some individuals are driving around with little to no auto insurance. If you’re involved in an accident while ride-sharing, you will be responsible for submitting a claim for the repairs. Depending on your coverage, the amount may exceed your policy’s threshold, and you might have to pay the balance out of pocket. Uninsured/underinsured coverage eliminates this scenario because it covers you when the other driver isn’t able to pay for your repairs. 

Another policy to consider adding is personal injury protection (PIP). This plan picks up the tab for medical expenses if you or your passengers are injured in an accident -- regardless of who caused the accident. At any given time, you might be transporting one or more passengers in your ride-sharing vehicle. Should an accident occur, you submit your PIP claim to your auto insurance provider instead of covering medical expenses on your own. 

Why Should an Insurance Agent Review Your Policy?

Before you venture into the exciting world of ride-sharing, discuss coverage options with an auto insurance agent. More experienced providers will review your current policy to ensure it provides maximum protection. They will also discuss discounts to lower your premiums, including incentives for anti-theft systems and taking a defensive driving course.  

Ohio Insurance Center Agency in Cincinnati, OH, will gladly assist you with coverage options if you’re planning to become a ride-sharing driver. Serving primarily Hamilton, Butler and Warren counties, the locally-owned firm understands that affordability and comprehensive auto insurance are top priorities. That’s why the agency can shop for rates from the nation’s leading carriers. If you’re an Ohio resident, call (513) 522-6300 for a review of your existing policy or to receive a free quote. You can also request one online.