All drivers who are driving for a rideshare company should know the fact that not every accident that happens to them is covered by their personal insurance or the ride sharing company’s insurance. That’s where Rideshare insurance is different.
Rideshare insurance is what Uber and Lyft drivers need to have complete insurance coverage of their cars so they are sure there is no accident that can happen to them without coverage. In this article, we will explain the details about different kinds of insurance available, and the best insurance you can use.
You do have the option of taking personal insurance and not telling your insurance company you are driving for Uber and Lyft… This sounds great and it works UNTIL they find out because you got into an accident of any type. If this happens you are not only not fully protected but can have your insurance suspended.
Another major risk is you need some kind of insurance to keep you covered between your trips as personal insurance will not cover you if they find out you were driving rideshare with normal insurance. In this case, it is highly advised to look into a better type of personal insurance that covers rideshare drivers while between trips. It will cost more but also protect you from the consequences of no coverage while waiting for trips.
The above image shows the different stages of service you will be in as a ride-sharing driver. It is important to know which type of insurance protects you and passengers at which stage you are in when driving.
- When you are in offline mode on your Uber or Lyft app you are protected by your personal insurance coverage or your personal ridesharing coverage
- When you are available or online but not en route or on a trip you may have coverage gaps that are neither covered by personal insurance or Lyft and Uber Insurance
- When you are en route or on a trip you will be fully covered by Uber or Lyft insurance
Uber and Lyft’s commercial policies always protect drivers but are liability-only during the “available” stage of a rideshare trip. What that means is only liable for accidents caused by their contracted driver. So this leaves you unprotected because you are not covered by your personal insurance or Uber or Lyft if someone slams into you.
So the best option for any rideshare driver is to get rideshare specific insurance coverage. There are many companies out there that sell rideshare car insurance as a more expensive insurance than just personal car insurance, but how do you find the coverage you need at the best price???
Insurify Rideshare Insurance
There are three main types of rideshare insurance policies
- Additional Protection – An insurance company gives you added protection in the form of “gap coverage” while you are online for Uber or Lyft. This gives you protection for what is not covered with Uber or Lyft’s coverage.
- Personal Insurance Extensions – These plans just extend your personal insurance coverage into a ridesharing trip with the same insurance provider.
- Hybrid Insurance – This replaces your personal insurance plan with a rideshare plan.
So which is best?
Instead of offering you all of our affiliate links based on the most money we can make from different offers out there… the absolute best way to get what you need at the lowest rate possible after looking at every single offer on the market and seeing how we could make the most money off of you… We found Insurify.com
And honestly, it answered every question about ride share insurance, but more importantly, is a free insurance comparison site. It gives you real-time accurate cheapest option quotes from all the top car insurance companies.
Use Insurify’s simple and fun system to get Rideshare Driver specific insurance quotes.
Try It For Yourself… It’s The Best
Uber Rideshare Insurance
As a ride-sharing company, Uber provides its drivers with “Driver-Partner Insurance.” But this insurance has several coverage gaps that can leave you vulnerable.
The Liability coverage offered by Uber is $50,000 per person on bodily injury, up to $100,000 per incident, and $25,000 for property damage coverage. This is the liability that Uber maintains from the time you are online with Uber until you accept a trip, and it also applies if your personal auto policy does not provide coverage or if your policy’s limits are less than these amounts.
On the other hand, according to Uber’s website, if you are en route to pick up a rider or if you are on a trip, Uber will insure you for 3 things:
Third-party liability coverage
– Insures bodily injuries or damages you’ve caused to your riders, people in other vehicles, pedestrians, or property.
– Coverage limits vary by state but are at least $1,000,000.
Uninsured or underinsured motorist bodily injury coverage
– Insures you and your riders if an accident occurs on a passenger trip and another driver is at fault and doesn’t have sufficient insurance, as well as hit and runs
– Coverage limits vary by state
Contingent comprehensive and collision coverage
– As long as you maintain comprehensive and collision coverage on your personal auto insurance, Uber will provide drivers with physical damage coverage up to the actual value of the damaged vehicle, no matter who is responsible for the accident. There is a $1,000 deductible that you must pay first before this coverage applies. That’s where there may be a gap in this system. We did experience one accident caused by an icy road which resulted in our vehicle sliding into the back of another vehicle.
Fortunately, because we were driving very slow there were no injuries to our passengers or the other vehicle’s passengers. We did have several thousands of dollars of vehicle damages to both our vehicle and one other vehicle and ended up having a $1,000 deductible with Uber’s insurance. Uber’s insurance coverage actually gave us $800 to cover the deductible as well so we ended up only paying $200 on the deductible. Not bad considering everything, but it still costs more than a day’s profits so that hurts.
Lyft Rideshare Insurance
Lyft insurance is similar to Uber insurance. As soon as drivers turn on the Lyft app and start driving, Lyft will provide third-party liability insurance for covered accidents if their personal insurance doesn’t apply. Here is the Lyft coverage plan for accidents:
- $50,000/person for bodily injury
- $100,000/accident for bodily injury
- $25,000/accident for property damage
If the app is on and drivers are about to pick up a passenger or making a trip, Lyft will provide the following insurance for covered accidents:
- $1,000,000 for 3rd-party auto liability
- Uninsured/underinsured motorist bodily injury
- Contingent comprehensive & collision up to the actual cash value of the car ($2,500 deductible).
So the real question is how much of the deductible they cover and we don’t know the answer. What you need to know is if you cause an accident with Uber or Lyft you will be required to pay something out of pocket. With Uber, it is not more than 1k and with Lyft, it is not more than 2.5k. Be prepared in case you have to pay either of these yourself and maintain a 2.5k savings just in case, but hope for the best like what happened with our accident scenario where we were only on the hook for $200.
How or why we were paid $800 out of $1000 is a complete mystery to us but we are guessing you won’t be on the hook for the full deductibles either. HERES TO HOPING.
Check Out Insurify… Get The Absolute Best & Cheapest Rideshare Insurance
You Definitely Want To Read: How To Maximize Rideshare Profits
No comments:
Post a Comment