In the burgeoning gig economy, many drivers are earning extra money by working for ride-sharing services like Uber or Lyft. How it affects your auto insurance, however, may not be well understood. To ensure you’re covered for any damages if you have an accident while working, here’s what you should know.

Insurance for Ride-Share Drivers

Most auto coverage falls under the personal insurance umbrella. Insurers cover expenses for accidents that occur while you drive in your day-to-day life. However, if you have an accident while you have a ride-share app on and are actively working, your personal coverage won’t apply to any damages unless you’ve added a ride-sharing endorsement to your policy. An endorsement is a provision drivers can add to their insurance policies altering its scope. Ride-sharing endorsements are not available in all states.

Without an add-on endorsement, you’ll need a commercial insurance policy designed to provide coverage for you and the vehicle while you’re working.

Both Lyft and Uber offer insurance to drivers, but it’s not as inclusive as having your own policy. Their policies cover only damage to the person or property hit, not any injury to you or your vehicle. Without the proper coverage, you’ll be on the hook for those costs.

Why You Need to Talk to Your Insurance Agent

Before driving for any ride-sharing company, review your current policy with your agent. If you don’t inform your insurer, you’re violating your insurance agreement and will lose coverage if you file a claim.

Your agent will work with you to make sure you have the right combination of personal insurance, commercial insurance, and endorsement add-ons, shopping various rates to find the best value for the coverage you need.

Make sure you have the auto insurance you require by contacting the experts at Patton Insurance Group in Springboro, OH. The highly trained staff at this independent insurance agency is always researching the latest industry trends to provide local drivers with superior insurance solutions. They’ll work with you to shop national carriers and match you with the best combination of coverage and price. Request a quote by calling (937) 886-9966, or learn more about their services online.