Understanding You Insurance Needs If You Are Driving For A Rideshare Service

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Moving into my first apartment brought along a whole series of new experiences. I didn't realize that the property insurance my landlord carried wouldn't cover my belongings. I was lucky to find out before anything happened, and I spent a lot of time researching the difference between renter's insurance and the property coverage for landlords. I built this site to share all of the information that I learned, including the insurance coverage best practices I picked up along the way. If you're new to renting and don't have any renter's insurance, I hope the information here helps you to see how it could benefit you and what you need to do to get it.


Understanding You Insurance Needs If You Are Driving For A Rideshare Service

9 March 2022
 Categories: Insurance, Blog

Insurance coverage on your car is often based on the age of the vehicle, your driving habits, and your driving record. If you opt for full coverage on your vehicle, you can expect coverage for most things; however, if you are driving for a rideshare service, you will need to get driver insurance for Uber or whichever company you work for. 

Insurance Coverage

If you have good insurance on your vehicle, you may think you are covered while you are working for a rideshare service, but the reality is, you are most likely not covered. Because driving for one of these services is a contract position, you essentially become a small business, and your personal car insurance will not cover you while you are working. 

Uber driver insurance or rideshare coverage is available from most insurance companies at a relatively reasonable price to add to your existing policy. If you work for a company that offers rideshare insurance, you can purchase through them. Look closely at the coverage because there can be some gaps in coverage that will leave you financially responsible for property damage or medical expenses resulting from an accident while on the job.

Tiered Insurance Coverage

The coverage that comes from rideshare driver insurance is often set up with different coverage levels depending on your activity. If you are driving around waiting for a call, your coverage is minimal, but the coverage increases as you drive to the pickup and then hits it maximum when you have a fare or rider in the car.

Staggering the coverage like this allows the insurance company to keep the cost of the insurance lower, and it ensures that you have the most coverage at a time when an accident could be the most significant, injuring you and your fare. The insurance cost can change over time but is often based on your driving record and other things similar to your personal insurance coverage. 

Getting Coverage

You must let your insurance company know you are driving for a rideshare service and get the right insurance rider in place. If you start driving for the service without the insurance and get in an accident, the insurance company could deny any claim you put in because you are driving for profit. 

Talk to your current insurance carrier about adding Uber driver insurance, but don't be afraid to call around for quotes because some insurance companies are more familiar with this type and already have good coverage plans for a lower cost than other insurers. Because your personal insurance coverage will not cover rideshare time, the rideshare insurance policy can be treated as a stand-alone coverage and does not have to be associated with your current insurance coverage. 

Click here for more info about rideshare insurance coverage.