3 Things To Know About Auto Insurance If You Become A Ride-Sharing Driver
Posted on: 10 June 2016
Ride-sharing services, such as Uber and Lyft, are becoming extremely popular. People are utilizing these services to save money when they need rides to go places, and others are taking advantage of this newer form of transportation by becoming a driver for companies like these. If you are thinking of signing up to be a driver for a ride-sharing company, there are several things you should know that relate to your auto insurance coverage.
You Must Follow The Company's Guidelines
Before you can become a driver for a ride-sharing company, you will need to go through the application process with the company. During this process, they may run a criminal background check, and they may complete a series of other steps, such as a car inspection.
In addition, they will require that you have auto insurance coverage. This requirement is designed to protect the drivers and their cars, and it is in place to protect the passengers. Typically, these companies require that your insurance meets your state's minimum requirements; however, this is not always enough coverage for drivers that offer ride-sharing services.
You Must Inform Your Insurance Company
Even if you think you have enough auto insurance coverage when you begin driving for a ride-sharing company, you must tell your insurance company. Many insurance companies are willing to offer coverage for these services; however, your current policy might exclude coverage if you are offering ride-sharing services. If this occurs and you are in an accident, you might have no coverage at all. This is why you should call your insurance company before you start so you can make sure you have enough coverage.
You May Need To Buy Special Coverage
Ride-sharing companies also have insurance protection, but this protection does not always kick in place. It often depends on what exactly you are doing. In other words, the coverage the ride-sharing company offers may only kick in if you have a driver in the car, but it might not be there if you are on your way to pick someone up. This is why you should make sure you have all the coverage you need with your own auto insurance coverage.
A lot of insurance companies now offer special insurance packages called ride-sharing insurance policies. These are designed uniquely to give a driver enough coverage for this particular service, and they are considered personal insurance policies. They offer high liability coverage amounts, and the protection will usually cover most types of accidents and problems.
If you are involved in an accident that your insurance company will pay for, your insurance will pay for the accident first. If your coverage is not enough to cover everything, the insurance company of the ride-sharing company you work for will then typically kick in and pay the rest. There are a lot of rules relating to this though, and you should understand how all of this works before you begin driving.
If your insurance company does not offer a policy for ride-sharing services, they may suggest covering you with a commercial driver policy. These polices also offer high coverage amounts, but they may be slightly more expensive than other policies.
Driving for a ride-sharing company is a great way to make extra money, especially during times when gas prices are low; however, you will want to make sure you have enough insurance coverage for this. The best way to do this is by contacting an auto insurance company that has experience with ride-sharing policies. This will help you learn what coverage you will need and how much it will cost. To learn more, contact an auto insurance company, such as Gateway Insurance, today.
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