Q: What If I Want to Drive For Uber or Lyft? What do I need to do?
I'm interested in picking up some extra cash by driving some shifts for a company like Uber or Lfyt using my personal car. From an insurance perspective, am I covered?
A: As these ride-sharing companies continue to grow and expand, this is becoming a very hot topic.
It is important to keep in mind that your personal car insurance is likely to exclude coverage when you are using your car for hire. This means that if you get into an accident and your passenger or another driver is injured or suffers property damage, your personal auto insurance company is likely to deny coverage.
The good news is that Lyft and some, but not all, levels of Uber do offer their drivers supplemental insurance. This coverage kicks in either as soon as you are dispatched to pick up a passenger, or only when you have a paying passenger in your car. This does leave a bit of a murky area wherein it is possible that you might find yourself without coverage from either insurance policy. This may happen if you are in an accident after dropping someone off, but you still have your ride-sharing company logo on your car.
It is precisely because of this insurance gap that some personal auto insurance companies are building hybrid policies that are designed specifically to work with the insurance provided by Uber or Lyft in order to keep you covered in all instances.
Before you take the plunge and start driving for either company, it is in your best interest to meet with an insurance agent who can help you review the insurance provided by the company as well as help you find a hybrid auto insurance policy that will keep you fully protected at all times.