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Over the last decade, rideshare services like Uber and Lyft have grown increasingly popular. However, to ensure it’s a successful venture, you must be properly protected. Rideshare drivers have unique auto insurance needs that extend beyond a standard policy. If you’re interested in driving for a transportation network company, here’s what you should know about securing the right coverage before picking up your first passenger. 

Auto Insurance Guide for Rideshare Drivers

How to Fill in Policy Gaps

Typically, rideshare services provide drivers with liability insurance limits up to $1 million. However, this only covers accidents that occur on the way to pick up passengers and when people are in the car. If you’re involved in a collision while logged into the app and waiting for a ride request, your coverage is restricted, as it will only pay for damage to other vehicles or passengers. 

Additionally, your personal auto insurance isn’t likely to protect you during this time since your car is being used for business purposes. This means you’ll be left with a gap in your policy. To fill this in, you need to add a ridesharing endorsement to your personal policy. This will expand your coverage to include your own damages.

Additional Coverage Options to Consider 

auto insuranceOnce you’ve accepted a passenger request, rideshare insurance will offer collision and comprehensive coverage as long as this is already part of your personal policy.

Collision insurance pays for any damage your vehicle sustains in an accident, while comprehensive insurance takes care of any non-accident related damages due to events such as inclement weather, falling objects, vandalism, and theft. Having this coverage will prevent you from paying for repairs out of pocket. 

Why You Should Schedule an Insurance Review

Determine exactly what kind and how much auto insurance you’ll need by consulting an agent. They’ll review your existing policy and explain where you may be left vulnerable between your personal coverage ending and your rideshare insurance becoming active. Then, they can recommend changes to make to your policy.  

 

When it comes time to purchase rideshare coverage, trust the team at Mountcastle Insurance in Winston-Salem, NC to help you customize a policy that offers adequate protection. They can provide access to reliable and affordable auto insurance solutions that will minimize your financial risk. Since 1890, the agency has become an established source for quality products and personalized service. Call (336) 777-8500 to begin exploring your options, or submit a consultation request online.

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