The rising popularity of the on-demand industry has sparked a wave of new earning opportunities for vehicle owners. Many individuals are turning to ride-hailing options, like Lyft® and Uber®, to either enhance their income or pursue a new career. Yet, the unique circumstances of the industry complicate the car insurance process. Ensure you're covered by following this handy guide.

Types of Necessary Protection

Ride-hailing drivers use their personal vehicles to provide a commercial service. For that reason, your coverage needs are twofold — both business and personal. Unfortunately, personal policies don't cover commercial usage, so the protections are voided once you sign onto the app and make yourself available for rides. Most big-name ride-hailing companies offer liability while you're working, but the coverage limits are low and come with restrictions.

To ensure you're thoroughly protected, you need a car insurance plan that covers you as both an individual and a professional driver. Liability coverage is necessary for both injuries and property damage and should at least match your state's minimum requirements. Since your vehicle is an income source, you should also have comprehensive and collision insurance. These offer assistance with repairs or replacement with at-fault incidents, as well as theft and storm damage.

Available Coverage Options

To obtain all the necessary protections while you’re on and off the clock, there are two policy options available: commercial and personal with an endorsement. A commercial auto insurance plan is ideal for full-time ride-hailing drivers because a large portion of the time you spend in the vehicle is for business purposes. Part-time drivers, on the other hand, may find sufficient coverage by adding an endorsement to their personal policy. This step helps extend your coverage for business purposes.

How to Determine the Ideal Option

Every driver has a unique set of needs. To find a plan that matches your circumstances, review your options with an agent who can offer unique insight into the ever-evolving industry. They also can help you verify your coverage limit needs.

If you're entering the ride-hailing game, ensure you're protected with the help of Robert Taylor Insurance. Since 1989, the independent agency has been a leading provider of home, life, and vehicle insurance across Lorain County, OH. These dedicated agents work one-on-one with clients to ensure a personalized coverage experience. Learn more about their car insurance options online, and request a review of your policy by calling (440) 277-5191.