If you work as a rideshare driver, it is important to invest in the proper rideshare insurance so that you are protected should something go array or you get into an accident. If you are a rideshare driver for companies such as Uber or Lyft, you may think that their insurance coverage is good enough. This may not be the case, however, and it may be in your best interest to invest in additional insurance coverage. The reason for this is that Uber and Lyft do not offer coverage for the entirety of the period that you will be considered to be working. This article will highlight several reasons as to why it is important to invest in your own rideshare insurance policy.
- Understanding the period of coverage. When you are a rideshare driver, it is important to understand that different periods of being a driver will require varying levels of insurance. This may be challenging to understand so we will break it down for you. For example, if you are a Lyft driver, period 1 is when you are waiting for a ride request to come in. Period 2 is when you are on your way to pick up the requestor and period 3 is when you are transporting the requestor to their destination. The reason that this is important to understand is that many policies will not cover you if you are in period 1 as it is not considered a commercial activity when you are not yet working, or driving a passenger to their destination.
- Be prepared to pay high premiums for a large policy. If you work for companies such as Uber or Lyft, you will be required to take out a large insurance policy. In fact, Lyft requires that their drivers have coverage of a $2500 deductible while Uber requires a $1000 deductible. This can be a big chunk of change if you were to get in an accident as not many people have a spare $2500 laying around to pay out as a deductible.
- You can save money by having rideshare insurance. There is a way to save money by having a rideshare insurance policy. In fact, many drivers also have their own personal policies. If you are in good standing with your personal policy, you should call up the company and ask if they can give you a quote on rideshare insurance. Some companies offer a great discount while others will be able to add on an insurance addendum to your current policy. If you or a family member have served in the military, there are also discounts for that.
Owning an insurance policy as a rideshare driver is smart and can save you a great deal of money in the long run should something bad happen while you are working. There are ways that you can find coverage for less so that you don’t have to break the bank. Regardless of what rideshare insurance policy you choose, you can rest assured that you are covered when you are working.