Rideshare Drivers: Why You Need Specialized Insurance Beyond Your Personal Policy

For many motorists, ferrying passengers as a rideshare driver has become a popular and flexible source of income. However, whether you’ve made driving for Lyft, Uber or another rideshare company your primary occupation or use these services part-time to subsidize your income, you should understand the risks and exposures involved. One particular consideration you must be aware of is your need for insurance beyond your personal auto coverage.

Why Do I Need Additional Auto Insurance as a Rideshare Driver?

Functionally, working as a rideshare driver is not particularly different than driving a traditional taxi cab, delivering goods or otherwise using automobiles for business purposes. Even if you’re using your personal vehicle, which a personal auto insurance policy may already cover, the fact that you’re doing so for commercial reasons incurs additional requirements.

Your personal auto insurance company might also require you to notify them that you plan to use your vehicle for rideshare services. Failing to do so could cause your carrier to cancel or decline to renew your policy.

What Types of Insurance Do I Need?

Many insurance carriers have started offering auto policies tailored specifically toward the needs of rideshare drivers. These policies can fulfill compliance requirements regarding insurance and augment your personal coverage to help you manage losses and incidents occurring while you’re on the job.

Although some rideshare companies may offer limited coverage for drivers, these arrangements may leave gaps that need to be filled. For example, you might be covered while a passenger is in your vehicle, but if you’re idling between trips or on your way to pick someone up, company policies may not apply. So if an accident occurred or your car was stolen, you’d potentially have to pay for resulting losses out of pocket.

Learn More

If you’re a rideshare driver in the Hollywood, Florida, area, contact First Choice Insurance Solutions Inc. today to learn more about coverage options and address applicable requirements.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.