Uber and Lyft are two of the most common ride-sharing services that people rely on. To protect them from the unexpected, drivers who work for the firms will need the proper auto insurance in place. If you’re thinking about joining the ranks or are a current ride-sharing driver, here’s what to know about coverage.

How Ride-Sharing Insurance Works

Depending on the company, drivers may be provided with auto insurance. For instance, Lyft implements liability coverage in the states that require ride-sharing companies to have them. Liability typically pays for damages and injuries to others caused by Lyft drivers.

Uber provides supplemental insurance to its drivers’ personal auto insurance, which they are required to have. Uber’s coverage kicks in only when the company’s app is activated. Otherwise, drivers use their own insurance. 

What Auto Insurance do Drivers Need?

If you’re a ride-share driver, your personal auto insurance may not be enough. Some insurance companies require these types of drivers to secure commercial vehicle insurance. Essentially, you’re using your car to transport passengers, which is considered a business. 

It’s important to let your auto insurance know that you’re driving for Uber or Lyft. If you fail to do so and get in an accident, they may reject the claim with your personal auto insurance. You could end up paying out of pocket for property damage and your passengers’ medical expenses. If a passenger sues you and the ride-sharing company, you may also be liable for paying their financial settlement and other legal costs. 

Ride-sharing drivers need to have the proper coverage in place for them and their passengers. Reed Brothers Insurance in Lexington, KY, is your trusted resource to ensure you have protection in place each time you’re behind the wheel. Since 1912, this independent agency has helped residents by providing auto insurance through its network of leading partners. To get started, call (859) 253-2728. You can also request a free, no-obligation quote online.