Ride-sharing services have become incredibly popular and have signed thousands of drivers to transport their clients.
The days of hailing a cab are nearing extinction. Now you just pull out your phone, set your destination, and call a Lyft, Uber, or other ride-sharing service. The drivers that work for these ride-sharing companies have flexible schedules and are able to enter the business without a big initial investment. But confusion does arise when one thinks of all possible situations: a situation like, “What happens if I get into an accident? Does my personal auto insurance provide coverage?”
So, what happens if you get into an accident while on the job? From where will your coverage come?
Ride-sharers use their own cars. This means that while they are driving for personal reasons their auto insurance will provide coverage. But when they turn on the app and sign in, it’s a different story. You possibly could have no coverage depending on you’re the carrier your personal auto insurance is with. Let’s take a look at Lyft’s and Uber’s policies when it comes to insurance.
Logged In & Waiting for Ride Request
Lyft – Contingent liability coverage with 50/100/25 limits that provide secondary coverage that only pays for losses not covered by driver’s personal policy.
Uber – Contingent liability coverage with 50/100/25 limits that provide secondary coverage that only pays for losses not covered by driver’s personal policy.
En Route to Pick Up
Lyft – Commercial liability with a limit of $1 million.
Uber – Commercial liability with a limit of $1 million.
Driving a Passenger
Lyft – Contingent comprehensive and collision coverage with a $2,500 deductible (for drivers with comprehensive and collision coverage) and a $50,000 coverage limit.
Uber – Contingent comprehensive and collision coverage with a $1,000 deductible (for drivers with comprehensive and collision coverage). Additionally, they will be provided the personal injury coverage that is mandated by law.
The right personal and commercial auto insurance will protect you whether you drive personally or for business, respectively. needs, Reata Insurance Group has you covered–both literally and figuratively. Contact us for the best rates and for all of your insurance needs.
