Insurance Options for Rideshare Drivers
Since companies like Uber and Lyft have grown in popularity, auto insurance companies have expanded their efforts to meet the demand from drivers for full coverage. Typically, these policies cover personal use and add coverage for at least part of the time that frivers are signed in to a ridesharing app.
Texas Rideshare Insurance – Texas is one of rideshare’s top markets. Contact your insurance agent about rideshare insurance options and best possible rates.
Here are some smart first steps to take when selecting rideshare insurance:
- If you have not done so already, tell your personal auto insurance agent you’re driving for a ridesharing company. If you don’t, the insurer could find out anyway and then cancel your personal policy.
- If the ridesharing company you’re driving for offers coverage, call to figure out the gaps between your personal policy and their policy. Bigger ridesharing companies generally provide at least $1 million in liability coverage for drivers carrying passengers, although policies can vary for rideshare drivers who don’t have passengers in the car.
- Reach out to your current insurer to see whether they offer ridesharing insurance or commercial insurance to fill in coverage gaps. Ridesharing insurance policies are generally more cost-effective than commercial insurance, which can cost up to 10 times as much as personal car insurance.
A Rideshare Issue
The insurance issue about rideshare comes from the fact that rideshare is considered “for-hire”, therefore considered to violate personal auto insurance terms of conditions. Uber and Lyft both carry their own commercial insurance but the problem is that the insurance is not primary in some instances. The “grey area” is when you are online with Lyft and Uber but with no passengers in the car. Many are calling this “period 1” coverage.
If you’re a rideshare driver and your state doesn’t yet have a ridesharing insurance program, be aware that that coverage is expanding quickly. As states continue to regulate ridesharing, it’s likely that other companies will fall in line, giving drivers even more options.
