How Does Car Insurance Work for an Uber Driver?

uber driver insurance

The idea of becoming an Uber driver and turning your car into a cash earning (rather than guzzling) machine might be tempting for the average person with a few extra hours each week on your hand. Before you take the leap, though, there are a few things you need to know about your auto insurance and whether it will cover your extra-curricular driving activities.

The need for ridesharing insurance isn’t limited to Uber. Those who drive for any ridesharing company are no longer covered by their personal auto insurance policies the moment they begin accepting riders. This means you have no liability protection, no comprehensive protection, collision coverage, medical payments coverage – you get the picture.

That is because your vehicle is no longer a personal vehicle. It is a business vehicle and that requires a different type of insurance policy as far as insurance providers are concerned. New risks and the greater potential damages ridesharing invites (not to mention the larger liability issues you face by spending more time on the road) insurance companies to re-evaluate your coverage and the premiums you pay each month.

What Can You Do to Protect Yourself?

The best, and most important, thing you can do to protect yourself is to check with your insurance company before you begin offer your services as an Uber or Lyft driver. You specifically want to know if your insurance provider offers coverage for rideshare drivers. Some companies do not even offer this type of coverage for which there is a growing need. Others, offer only limited coverage while still others may require you to purchase both a personal use policy and a business automobile insurance policy.

Does Uber Insurance Offer Adequate Protection?

While Uber and other rideshare organizations do offer insurance protection to their drivers, it’s vital for you to understand the coverage details, such as which phases of the job are insured. For instance, your company sponsored insurance protection may not cover the period before, during, and after ride requests are made. You need to make sure that you have protection at all phases of the job and that coverage isn’t limited. If that is the case, then you may not need commercial auto insurance at all.

Making extra money by offering your services as a rideshare driver can be a fantastic way to meet specific financial goals, have a little extra spending money, or pay off debt. However, without the right kind and amount of car insurance protection it can spell certain financial disaster for your family.

Discuss your insurance needs with a BOLT Insurance agent today so you can make informed decisions about whether becoming an Uber driver is the right choice for you or not.