The gig economy has transformed not only how people commute, but how they make money. The flexibility of working when you want and how you want is attractive to many. But as an Uber or Lyft driver, you are essentially running your own business. Part of running your own business is understanding how to keep it protected. Let’s dive into the type of insurance needed for rideshare drivers, and how you can find the best policy.
What Type of Insurance Do Rideshare Drivers Need?
Rideshare companies typically provide some level of insurance coverage for their drivers, but the coverage varies depending on the driver’s status within the job. For example, if the app is off and you are not actively working, you’re only covered by your personal auto insurance. When you’re waiting for a ride request, you typically have limited coverage from the rideshare company. Once you are on your way to pick up or drop off a passenger, you have the most coverage.
So the #1 essential before you even consider driving for Uber or Lyft is that you have good personal auto insurance. But you’ll need a little extra coverage beyond that to keep yourself protected 100% of the time.
Insurance Add-ons for Uber & Lyft Drivers
Many insurance companies will offer rideshare endorsements that can be added to your personal policy. This allows you to fill in the coverage gaps, so you don’t have to stress when you’re waiting for a ride request. It also keeps your personal auto coverage simple, as you don’t have to set up an entirely separate policy to get this type of coverage.
What Does the Rideshare Company’s Insurance Typically Cover?
Typically, the company’s insurance covers liability, comprehensive, and collision during certain periods. It’s essential to understand the coverage limits, deductibles, and when each phase of coverage applies.
How to Find the Right Policy
Be Transparent
This is a non-negotiable. While it can seem tempting to understate the amount of time you typically drive or where you might be driving, it’s not smart. You want to make sure you are actually covered in the event of an accident. Your insurance agent can only ensure this is the case if you are 100% honest about the details of your rideshare driving.
Be Open to Switching Insurers
First things first: check with your current auto insurance provider to see if they offer an add-on for rideshares. Find out how much extra it will cost and what coverage will look like. If you don’t like what they have to offer, do not be afraid to look elsewhere. There are dozens of reliable insurers across the U.S. that can make insurance for Uber & Lyft drivers easy and affordable.
Talk to an Independent Agency
An independent insurance agent will scour a vast network of insurers to find a variety of quotes for you. Unlike scouring the internet on your own, an independent agency has worked with these companies extensively, and understands what working with them is like. Finding the right policy is not just about finding the cheapest policy, but prioritizing quality as well. We are never going to recommend that you work with a provider that is impossible to get a payout from, in the event of an accident.
Understand the Coverage You’re Purchasing
Discussing deductibles and coverage limits might be our favorite way to spend the day, but it’s probably not yours. Despite that, it’s vital to understand the coverage you’re purchasing. You might find a policy that looks simple and affordable, but if the deductible is way too far out of your budget, is it really the best choice? Think carefully about what kind of deductible you could afford, if something were to happen.
Drive Safe
Nothing is going to make your car insurance cheaper than simply driving safely. Maintaining a clean record has a serious impact on your auto insurance rates. And luckily, it’s an easy fix. Stay alert and attentive when you’re on the road to keep your monthly costs low.
Best Insurance for Uber & Lyft Drivers
Don’t wait for an accident to happen, take a proactive approach to your new career. At The Kind Insurance, we’re ready to find the perfect policy for you. Shoot us a text or hop on a call to get a quote. We’ll find out what type of coverage you need, what makes sense for your budget, and more. Get in touch today!