Make Sure Your Vehicle Is Insured Before Working For A Rideshare Service

Sherri Ramos

Rideshare services have thoroughly expanded transportation options for many people's everyday travel needs, while also expanding income-earning opportunities for many. If you find yourself in the latter category, it is important that you also ensure you are protected while you take advantage of this opportunity. More specifically, make sure your insurance is up to par. Just because you have insurance on your vehicle or the rideshare company covers your vehicle does not mean that you are entirely covered.

Personal Policies May Not Cover Commercial Damage

Even if you have your own auto insurance, it does not mean that you are 100% covered. Many insurance companies require their policyholders to designate whether or not their vehicle is used for ridesharing purposes. If you are not honest, the insurance company will list your policy as a personal-use policy.

Damage to your vehicle while you are working for a rideshare company will not be covered by your insurance if you only have a personal-use policy. Insurance companies will not cover commercial-related expenses on a personal-use policy.

To make sure that you are protected, it is important to include this information on your policy so that you can include additional coverage for occasional commercial use of the vehicle. Keep in mind that even if you try to conceal this information, the insurance company has a way of tracking to see if the vehicle is used for ridesharing purposes. 

Driving Status Matters

The rideshare company offers insurance to their drivers so there is no need to purchase a personal policy, right? Not exactly; you still need your insurance. It is important to understand that many large rideshare companies activate and deactivate driver insurance based on the rideshare driver's driving status. 

Traditionally, you have to be actively accepting rides for insurance protection to apply. So, if you drop off a rider, deactivate your status on the rideshare app, and get into an accident on your way home, the rideshare company's policy will not cover you.

It is also worth noting that the level of insurance protection these companies offer is significantly lower when you are active on the app but do not have a rider than it is when you do have a rider. As a result, you could be left to pay for a large share of your vehicle damage out of pocket if you do not have a rider or your own insurance.

Make sure you have your vehicle protected from all sides. Contact an auto insurance professional for further assistance with this process.