If you use your car for business, your auto insurance should reflect that, especially if you’re a rideshare driver for Uber or Lyft. While you may think you’re adequately covered by your personal policy, the details of how insurance works in these situations can be complicated. The following primer will help explain the gaps you may have in your policy and how you can properly protect yourself. 

A Guide to Rideshare Auto Insurance 

How Coverage Works Through Uber & Lyft 

Uber and Lyft both provide insurance while you’re driving; however, protection is minimal and it doesn’t cover you the entire time you’re in the car. Their coverage largely depends on whether or not you have a ride request or passenger. If you’re not logged into the rideshare app, you’re only covered by your personal policy. If the app is on but you haven’t picked up a passenger yet, the rideshare company may only provide liability protection. After you’ve accepted a ride, you’ll have liability and uninsured/underinsured motorist coverage. They also offer collision and comprehensive coverage if these are part of your personal policy.

Why Your Personal Policy Isn’t Enough 

Most personal auto insurance policies exclude coverage for drivers using their cars for business reasons—like driving people in exchange for money. That’s why it’s necessary to have a commercial auto policy. Without one, if an accident occurred while you’re logged in and waiting to receive a ride request, you would have limited coverage from Uber or Lyft and no coverage at all from your personal policy.

What Your Options Are

Many insurers offer a rideshare endorsement that you can add to your personal auto policy. This is specially designed to cover liability and property damage claims for rideshare drivers. With this extra coverage, you’ll be protected whenever the app is on. If you don’t have it and you’re forced to file a claim before Uber or Lyft can investigate the incident, you run the risk of losing your policy for violating your terms.

If you need help finding the right auto insurance for your ridesharing job, turn to the professionals at Insurance Savers.They’ll assess where you may be lacking coverage in your personal policy and find you an affordable solution. For two decades, they’ve been dedicated to providing Phoenix, AZ residents with quality products at competitive prices. Call (602) 265-9311 to set up an appointment or visit them online to learn more about their services.