Drive for Uber? You May Need Rideshare Insurance to Protect Yourself Legally

A 2019 Pew research study shared that about 40% of U.S. adults use ridesharing apps to hail a ride.

Have you thought of getting in on this lucrative and high-demand economy?

You may be interested in becoming a rideshare driver for a financial goal, saving enough to cover expenses, or saving for future needs. Driving passengers is undoubtedly a steady income stream, but you will want to protect that income and your assets with rideshare insurance.

Read on below to find out what this insurance coverage is and why it is crucial for your success.

Why You Need Rideshare Insurance

Rideshare insurance covers you when things go wrong in working with apps like Lyft or Uber. This insurance offers protection for your passengers, coverage for car damage, and emergency road service. Further, your personal insurance may drop you if they find you without coverage but working as a driver.

Purchasing a plan keeps you and your assets safe and helps you reach your financial goals.

The Different Options for Insurance Coverage

Many insurance companies offer rideshare insurance, though not all are created equal. As any rideshare attorney will share, your insurance policy should cover all needs to keep you and your assets protected in case of an accident.

It is crucial to know the ins and outs of insurance policy options.

The driving company you use will offer a limited form of insurance. You should explore what exactly this will cover to identify the gaps that exist. For example, Lyft or Uber insurance policies only begin once the ride has started but don’t cover the time spent waiting for the customer.

A rideshare endorsement from your personal auto insurance company is an easy lift and affordable option to cover the gaps! Many big brands, such as Geico and State Farm, offer a coverage option that extends your personal coverage to your rideshare drives.

You can also explore standalone coverage options that exist separately from a personal plan. These may be more expensive, though you have more power to customize the best plan for you.

Costs Associated with Driving Protection

The price of insurance varies based on several factors, including coverage options and liability limits.

First, explore which coverage option you want between a rideshare policy versus a commercial vehicle policy. However, a good rule of thumb is that rideshare options will be less expensive than the latter.

Next, you’ll want to be specific about the coverage limits that make you feel confident behind the wheel. A rideshare endorsement policy will mimic the limits of your personal coverage. Purchasing a standalone policy means you need to select the limits yourself.

Some policies may be as inexpensive as a few dollars extra a month. For example, a reasonable estimate for rideshare insurance is 15% of your current vehicle insurance, meaning you should be able to get by with under $20 a month.

How to Get Covered

Once you decide to start taking passengers, you need to ensure coverage with rideshare insurance. You should aim to do this right before you begin picking up clients.

There are a few simple steps to get protection:

  1. Review the insurance you will receive from the particular app you’ll use
  2. Connect with your car insurance company and inform them you are beginning ridesharing
  3. Gather information on a ridesharing policy versus a commercial vehicle policy
  4. Compare the app coverage with the options from your insurance company to make sure all gaps are covered
  5. Chat with a rideshare accident attorney to double-check your coverage needs

Protect the Side Hustle

Ridesharing is a great way to build a second stream of income to accomplish lofty financial goals, such as paying off student debt or saving for a house. But don’t watch your hard-earned money fly away from auto accidents or liability issues.

Protect yourself with rideshare insurance, and find other methods of securing your assets on our blog.

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