Working in your spare time as a rideshare driver is an excellent way to earn extra money, but it is incredibly important that you are prepared for this part-time role if you want to protect yourself. Step one in safeguarding yourself involves ensuring you have the right knowledge when it comes to proper insurance coverage.
Personal Coverage is Necessary
One good thing about working with rideshare companies like Uber and Lyft is the fact that they offer added auto insurance protection for their drivers. However, it is important to stress the differentiation. These rideshare policies are only activated after your personal coverage has been activated. Therefore, if you do not have your own auto insurance policy, in the event of an accident or other mishap, you will not be able to rely on the added rideshare coverage.
Coverage Limits Vary
Rideshare companies are very specific when it comes to how this coverage can be applied. Generally, the rideshare policy only provides coverage when you are in an operational capacity, such as actively waiting for a route, en-route to pick up a rider, or transporting a passenger. If an accident occurs outside any of these periods, this policy cannot be used. For this reason, it cannot be stressed enough that it is essential you secure your own policy for situations that arise outside of these periods.
Deductibles are Present
Again, rideshare companies do provide additional insurance coverage that can be used in certain circumstances, but make sure you understand that these policies also have deductibles. For example, say a tree branch falls on your vehicle while you are transporting a passenger. Since you are in an operational capacity, the rideshare coverage component will likely cover the damage, but you will be required to meet the deductible first. Read through the documents to see how much the deductible is to ensure you are always prepared.
Research is Necessary
Ridesharing services are becoming more and more common across the country. As a result, more and more insurance companies are offering insurance packages that are tailored to these types of vehicle owners. Yet, it is important to keep in mind that not every insurance company offers the same coverage. It is critical that you do your part and research the different options available in your state to ensure you receive the best coverage based on your needs.
Be sure to keep all these factors in mind as you secure insurance protection for your rideshare vehicle. For more information, contact an uber driver insurance company near you.
After I graduated college, I started to feel like an adult. I started teaching at a school. I also bought a car. And I became the owner of several insurance policies. I obtained a comprehensive insurance policy for my car. I also secured my first life insurance policy at this time. I didn’t want my family members to be burdened with funeral costs if I suddenly passed away. A few years after graduating college, I became a homeowner. After this joyous occasion, I invested in a homeowners insurance policy. On this blog, I hope you will discover the most common types of insurance people purchase.