You may not have the protection you think if you drive for a ridesharing company.
Ridesharing companies like Uber and Lyft are getting more and more common every day. The number of people who are earning extra money by driving for these companies is also increasing each day. Before you decide to download the app and start picking up passengers, you need to take the time to ensure you know what driving for a ridesharing company will mean for your auto insurance policy.
Ridesharing companies provide their drivers with a commercial liability auto policy that will kick in when you have a passenger in your vehicle. When you are not working, your personal auto insurance policy will still be providing your coverage. However, the period of time when your app is on and you are waiting for a passenger has been a big gray area for insurance agencies. Your personal car insurance won’t provide any coverage since you are using your car for business purposes, but the ridesharing company won’t provide coverage because you don’t have a passenger. So what do you do?
Luckily, a few insurance companies have found a solution to this issue and have started offering ridesharing endorsements that you can add onto your personal policy. These endorsements will cover that gray area to ensure that you are covered whenever you are behind the wheel of your car.
Keep in mind that these policies are only offered by certain insurance companies, so you may need to switch your insurer to get the coverage you need.
For more information on what driving for a ridesharing company will mean for your car insurance, contact Lou Aggetta Insurance Services in Pleasant Hill, California. As an independent insurance company, we are here to help with all of your auto insurance needs to ensure you have the coverage you deserve at all times.