How Does Rideshare Insurance Work?

If you get into an accident with your car while driving for Uber or Lyft on just your personal auto insurance policy, watch out. That’s because you could end up paying out of pocket for all costs, fees, and additional expenses in the event you get into accident. While you might expect those costs to be paid by your insurer, the fact that you were using your vehicle for business purposes may exempt your insurer from having to cover them.

Furthermore, they may decide to drop you from coverage altogether because you were not in compliance with the language of your personal policy. That’s why it’s so important that you have rideshare insurance if you are planning on driving your car to work for one of the ridesharing companies.

This kind of insurance for drivers with Uber or Lyft is crucial for keeping you and your property fully covered, but there is still a lot of confusion as to how it all works and when it goes into effect as you drive throughout the day. We’re going to make it a little easier to understand.

Rideshare Insurance Periods

Uber insurance Virginia Beach along with the insurance coverage provided by Uber or Lyft is still the most secure way to stay covered when you’re working around town. Rideshare insurance is a policy that covers you both for personal and business use, that is until Uber or Lyft’s coverage kicks in.

That can sound a bit befuddling, but it’s true, when you are driving your car for rideshare purposes, you and the company both are expected to assume the responsibility of keeping you covered. The companies, like any business, maintain a certain level of insurance to protect themselves. That does include you, to some extent.

It’s all outlined in so-called “Rideshare Insurance Periods” that determine when your coverage is in effect and when the company’s coverage is in full force. Simply put, your insurance is in effect while you are driving for personal reasons (like it would with any normal personal car policy) and while you are logged into Uber or Lyft’s app and driving around to pick up passengers. These refer to Period 0 and Period 1.

Period 2 goes into effect when you accept a request to pick up a passenger. You are now driving for the company in support of performing a job for them. Uber or Lyft’s insurance policy kicks in and you are now covered by the company. This extends to Period 3 which refers to the actual pick up of your passenger. During this time, you continue to be covered entirely by your employer’s policy.

Buying Rideshare Insurance

Depending on the insurer and your driving record along with other determining criteria, a personal policy with rideshare coverage can be as little as $15 to as much as $100 per year. This number will fluctuate based on the driver and additional factors.

But you can see that buying rideshare insurance is not astronomically more expensive just to remain fully covered while you drive for Uber or Lyft. The alternative can be though.