You are probably familiar with the popular app and driving service- Uber. Uber is rapidly eliminating the demand for taxis and private driving services, by providing a location-based phone app that connects drivers with riders. There are a few different developing apps in the industry, such as Lyft, as well.
You may have considered being an Uber driver, or a similar service. It’s easy enough, and provides a little extra influx of income. However, you may not have considered the insurance implications of being an Uber driver.
Many insurance policies do not cover any incidents when “driving-for-hire.”
When driving for a service like Uber, your personal auto-insurance policy may not have you covered. Many auto-insurance policies include an exclusion that invalidates coverage when “driving-for-hire.” Call your insurance agent and ask what your policy includes. If your policy does not cover you as a driver, then supplemental policies are often available to add on to your current insurance coverage. Ask your insurance agent about what your options may be for adding one of these supplemental policies.
You might be thinking- “But Uber provides insurance for drivers?”
True, but let us explain. Uber’s insurance policies on drivers are only active while the app is active. If your Uber app is turned on, then you are covered at a low level as the driver. As soon as you pick up a passenger, a higher-level coverage kicks in. However, this is strictly liability coverage for the driver. These policies do not cover your vehicle. This means that if you were in an accident and there were injuries to your passenger or another driver, then Uber provides insurance coverage to protect you from paying medical bills or property damages. However, if your car is damaged then your personal auto insurance is liable.
As soon as you turn off your app, your personal auto-insurance is liable for any accidents again and your policy works just as if you were not an Uber driver.
To read more details from Uber about the coverage provided as a driver, click here.
If you are considering or are actively driving for a service like Uber or Lyft, call us today to ensure your auto-insurance policy has you covered. In the event you are not, we would love to help you find the best policy to keep you safe. Call us today at 225-927-0451.