In the past few years, side hustles and contract work such as grocery delivery and ride-sharing apps have become extremely popular. As everything as shifted and unemployment ha been on the rise, these jobs have provided for families in these difficult times.
While becoming an uber driver may seem as easy as submitting an application and downloading an app, there are a few other implications that need to be considered. Specifically, you should be aware of how your car insurance will be affected and applied when you become an Uber driver.
Unlike the traditional taxi service, almost anyone can become an Uber or other rideshare driver. In many states, the only requirements include that you have car insurance, completion of a driving test, and passing a background check.
While obtaining car insurance is a requirement to use your car for driving Uber, your personal car insurance policy may not actually cover you while driving for Uber. Most car insurance policies have a list of exclusions and oftentimes this list includes “driving for hire”. Driving for Uber or other ride-sharing apps would fall in this category.
This is also sometimes referred to as commercial driving. If you are wondering whether or not your insurance policy covers commercial driving contact your insurance agent to see how this could affect your coverage. If it does not, you will want to consider purchasing supplemental commercial auto insurance, though, for many part-time drivers, this may not be financially feasible.
Does Uber Provide Any Insurance Coverage?
Uber requires all their drivers to have car insurance, and provides supplemental insurance coverage, but only while the app is on. When the Uber app is off, a driver is covered by their own personal car insurance. When the Uber app is turned on, a low level of liability insurance becomes active. When a trip is accepted, a higher level of coverage kicks in and remains active until the passenger exits the vehicle. This can provide drivers with some coverage but could still leave you hanging in some areas.
What If My Insurance Doesn’t Cover Commercial Driving?
If your car insurance policy doesn’t cover commercial driving or driving for hire, you may not be covered in the event of an accident. Not only will you not have insurance coverage for any damage done to your car while driving for Uber but you wouldn’t have any liability insurance for passengers who also may have been injured. This could end up costing you a lot of money out of pocket.
At Link-Hellmuth we are here to not only find your cheap car insurance in Springfield, Ohio but we can help select a customized plan to cover your unique needs. Several insurance companies have recently created additional coverage options specifically for drivers of Uber and Lyft, which are available in all 50 states.