Many people in search of a “side hustle” are turning to rideshare services such as Uber and Lyft. Driving for these companies enables you to use your personal car to transport passengers who need a ride — and earn some extra income for your efforts. One of the issues that many prospective drivers face is finding affordable insurance coverage that provides adequate protection for themselves and their passengers. The good news is that rideshare insurance is now available in many states, including Missouri.
You might be thinking, “I already have car insurance. Why do I need to buy ridesharing insurance?” Unfortunately, a personal auto policy typically does not provide coverage when using your vehicle for commercial or business purposes — such as when delivering passengers for a fee. You’ll need the extra coverage to avoid having to pay a claim out of your pocket. What’s more, your insurance carrier will probably cancel your policy if it discovers you’ve been using your car as a livery service, and you don’t carry additional rideshare insurance.
Available coverages can vary, but in general, rideshare insurance offers:
Depending on your state, you may have several options for purchasing ridesharing protection. If you’re driving for Lyft or Uber, they’ll offer a limited amount of liability coverage while your app is turned on and you’re waiting for a ride. They’ll then provide full coverage upon accepting a ride request and when picking up and transporting your passengers. You’ll need to contact your personal auto insurance carrier to determine if it will allow you to add an endorsement to your policy to cover the periods when you’re not working, and you’ve turned off the app.
You can also purchase a comprehensive commercial auto insurance policy that covers various types of business-related risks. However, these policies are expensive, and you’ll probably end up paying for additional risks that don’t apply to your situation.
The good news is that many insurance carriers are now offering “hybrid” plans specifically designed to serve as rideshare insurance for Lyft and Uber drivers. These policies generally provide protection when you’re on or off the clock — everything is under one policy, and you won’t have to worry about adding endorsements or gaps in the ridesharing company’s coverage. These plans are also usually less expensive than commercial auto policies.
If you’re in or near Missouri towns such as Union, Washington or St. Clair and need rideshare insurance for Uber or Lyft, David Pope Insurance Services, LLC can help. We’ll discuss your options with you and set you up with a plan that meets your needs and budget. Contact us for a no-obligation rideshare insurance quote today.
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