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It’s common to have so many options as you search for the car insurance that best suits your needs. People generally look at the price and the extent of coverage a carrier offers. But some people don’t pay as much attention to the details of their auto policy. However, if you drive for a transportation network company (TNC) like Lyft or Uber, an insurance plan with rideshare coverage could be a valuable investment for you. State Farm insurance reviews will give you an idea of how some reputable carriers offer this add-on coverage to provide you with more wide-ranging protection.
Check out the benefits
Some insurance companies offer ridesharing coverage. It’s something you can add to your current personal auto insurance policy. If you drive for a TNC, this extra coverage may help fill the gaps between your ride-hailing company’s commercial car insurance plan and personal car insurance policy.
Another option is to get full rideshare insurance. This combines commercial and personal coverage into a single auto policy. Premium rates, the scope of coverage, and limitations generally vary among carriers. The available coverage can also differ by state. Talk to your insurance agent to see what options are offered in your area.
There are three insurance policies at work when you drive for ride-hailing companies. First is the auto insurance that the company provides for you. Then your personal car insurance policy and your rideshare insurance.
Your personal car insurance policy and the insurance provided by the ride-hailing company will likely not cover you for the entire time you’re on the job. That’s why getting rideshare coverage is necessary. It’s unlikely that your personal car insurance will cover the accidents that happen when driving for a TNC. The auto policy you receive from Lyft or Uber will also likely be limited in its coverage.
Your rideshare coverage will depend on which ridesharing period the accident occurs. The ridesharing process is broken down into four periods:
- Period 0 – You’re driving, and your ridesharing app is off. Your personal car insurance policy covers you during this time.
- Period 1 – You turn on your app, and you’re waiting for a ride request. When an unfortunate incident occurs, the ride-hailing company’s insurance will cover you. But it will only provide liability coverage. To avail of damage coverage, you would need rideshare insurance.
- Period 2 – You accepted a ride request and are on your way to pick up the client. The ride-hailing company’s insurance will provide comprehensive coverage during this time.
- Period 3 – You’re transporting your client to his or her destination. The ride-hailing company’s insurance will provide comprehensive coverage during this time.
What Does It Cover?
Rideshare coverage intends to fill the gap between your personal car insurance and the insurance your ride-hailing company provides. This gap is between the first period (when your private car insurance will not cover you) and the part where the coverage from Lyft, Uber, or other ride-hailing companies is limited.
Rideshare auto insurance policy is based on several factors. Coverage can vary according to the state you live in, your insurance carrier, and the type of auto policy you choose. But rideshare auto policies generally cover the losses or damages to your vehicle from collision and non-collision incidents, such as vandalism, theft, or natural disaster. It may also cover injuries caused by an uninsured or underinsured driver.
Some insurance companies have rideshare policies with more coverage options. These extra features may include payments for medical expenses, property damage, injuries to other drivers, a legal defense if the other driver sues you, rental car reimbursement, and roadside assistance.