Ridesharing jobs are among the most popular forms of employment today, but drivers who use their own automobiles to work these jobs are often unaware of the importance of owning rideshare insurance. The fact is you must have a rideshare insurance policy because it will cover you if you get into an accident while you are driving for Lyft or Uber.
You may think your personal policy will suffice, but that is a misconception that far too many drivers find out far too late. Don’t be left paying hundreds, if not thousands, of dollars out of your own pocket just to cover the costs of an automobile accident.
It’s already common knowledge that you need car insurance in order to legally operate a motor vehicle on public roads and freeways. Though if you are relying on your personal policy to cover you while you use the car for work, you will discover that not only won’t the insurance company pay for any costs of an accident but they may also cancel your policy entirely. That will make it significantly more difficult to get another policy from another insurance provider.
You may be somewhat confused by this. So let’s go further to explain how and why it’s so important to keep rideshare insurance in addition to your personal policy.
Your Personal Policy
At the time you were shopping around for a car insurance policy, you provided your potential insurers with a variety of information that pertained to your current situation as far as your motor vehicle and your driving habits were concerned. The policy you ultimately purchased came with specific limits and stipulations that were all based upon this information.
These likely included where and how often you drove the car, the type of car you own, and where the car was parked, along with other vital statistics about who you are and what you do in and around your car from month to month.
What you didn’t explain to them was that you had planned to use the car for the purposes of driving a rideshare job. But when you are operating the vehicle for this objective, you are most definitely using it far more often than the insurance company expected you to. This makes you a higher risk in their eyes because the more often the car is being driven on the road, the more chances it has of being involved in an accident. Particularly an accident that you could be deemed liable for.
So Now What?
If you get into an accident driving for Uber or Lyft and you expect your insurer to cover your costs under your personal policy, think again. This accident will fall outside of the agreement made as part of your insurance policy. The insurer will consider this part of an elevated risk that fell well outside of the risk they signed on for.
As a result you won’t just be left to pay for all of the costs your policy would have covered had this accident occurred during personal use, but you could be dropped entirely. When that happens, you are now a bright red flag of risk for other insurance companies to avoid taking on. If you manage to find a company willing to take on that risk, you can expect to pay two or three times more for your premiums.