Important Insurance Facts for Uber, Lyft, and Sidecar Drivers

March 4th, 2016 Attention,Insurance,News

Because they offer flexible hours and competitive pay, ridesharing companies like Uber have attracted a lot of attention lately. According to several reports, a valid driver’s license and a vehicle are all the average driver needs to start earning money with these companies. As many insurance companies have pointed out, the seemingly simple subject is very complicated; these drivers are not only using their own vehicle(s) for private use but also for business use. Purchasing the correct insurance policy can be perplexing because of the ambiguity regarding what type of auto coverage rideshare drivers should actually have to be covered correctly. We hope the following insurance coverage options will help all of our Uber, Lyft, and Sidecar Drivers. Fidishun Insurance Facts for Drivers

What’s Provided

The good news is that after some initial hesitation, all of the aforementioned ride-hailing companies now provide a certain amount of auto coverage to their drivers. But if something should go wrong, timing is everything when it comes to which insurance will cover the costs of the accident/loss.

What’s Not

Rideshare drivers that operate with Uber, Sidecar, or Lyft must have their own auto insurance because they are using their own vehicle(s). These personnel policies will cover the driver should anything happen when they are not working. In other words, the company the driver works for will take zero responsibility for an auto accident should they have one on their own time. This is why it is important to find an insurance company that offers insurance coverage options specific for Uber, Lyft, and Sidecar drivers.

Operating Coverage Varies

Much like a taxi light that illuminates when in service, a rideshare driver goes on duty by turning on the smartphone app that’s used to communicate with potential passengers. Unlike the taxi driver, the rideshare driver will not be fully covered by the company’s insurance until the driver accepts a service request. While the driver is logged and waiting for a ride, the company provides contingency liability insurance that will only pay for losses that are not covered by the driver’s personal auto policy.

The Bottom Line

In order to work for any ridesharing company, a driver must purchase their own auto insurance; however the type of policy the drivers require remains a matter of some debate. Insurance coverage options for Uber, Lyft, and Sidecar drivers include personal, commercial, and new hybrid policies that were created specifically for rideshare drivers. Although they are not currently available in all states, these rideshare services and special insurance policies will most likely reach non-serviced areas in the very near future.

Until that time, rideshare drivers should purchase a decent level of coverage with their own personal auto insurance policy. However, please take note that some cities and states currently require rideshare drivers to purchase more expensive commercial coverage options. It is up to each employee/driver to keep abreast of the regulations and restrictions in their area, as they are in a constant state of flux.

Fidishun Insurance & Financial Inc. represents several top rated insurance companies that offer affordable insurance for rideshare drivers in Pennsylvania. Please feel free to contact our office with any questions about the insurance coverage options available for Uber, Lyft, and Sidecar drivers.

Special thanks to Adam Avitable for the image.

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