Should Ridesharing Service Drivers Buy Commercial Auto Insurance?

Uber uber drivers insuranceand Lyft ridesharing companies provide an alternative to traditional forms of public transportation such as taxis and buses. Driving for these companies can be quite lucrative, but it does increase risk for drivers.

In this post, we’ll explore the risks associated with providing services through a ridesharing network. We’ll also examine whether or not commercial auto is necessary.

Automobile Insurance for Drivers

Private passenger auto insurance policies typically include standard exclusions related to the commercial use of a vehicle. This can mean that drivers may find that their auto insurance leaves them personally liable for an accident that occurs while driving a passenger. If true, an accident that occurs while driving for a ridesharing service could leave a driver financially devastated.

Many of the nation’s top insurance experts advocate for ridesharing drivers to purchase commercial auto insurance, as personal auto insurance does not include coverage if the car is being used for commercial purposes.

What Does Uber’s Policy Actually Cover?

The company does appear to offer some levels of coverage for drivers and has expanded its insurance policies, but coverage gaps still exist. The current policy appears to only cover drivers when they have been matched with a fare or are carrying a passenger. The time between fares is not included in the Uber coverage, and depending on personal auto insurance coverage, the driver may not be covered at all during this time.

Some insurance companies have begun developing policies that cover drivers during the non-fare time for a minimal additional fee each month. Understanding exactly what you are covered for can be complicated, so it’s best to consult with your independent insurance agent about your coverage before driving for a ridesharing company.

Talk to Kincaid Today

The independent agents at Kincaid Insurance are knowledgeable about the insurance needs of ridesharing service drivers and others who are providing transportation services with their personal vehicles. Our agents can help you find the auto policy that meets your individual needs. Kincaid Insurance’s independent agents are well-versed in commercial auto coverage and can help you choose the appropriate policy for your needs. Each day, we help businesses in Evansville, Mt. Vernon, Carmi, Hopkinsville, Madisonville, Jasper, and the surrounding Tri-State area.

Call 877-888-5506 to talk to a commercial auto specialist today.

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*This article contains the names of popular transportation services, which may be trademarks of their respective parent companies. These trademarks are mentioned purely for informational purposes, and no endorsement is intended nor implied by Kincaid Insurance.