THURSDAY, MARCH 23, 2023
If you’re looking to start making some extra money through a ridesharing service like Uber or Lyft, you may be wondering what kind of insurance you need. Driving other people around for profit puts you at unique risks—some of which you may haven’t even realized yet. Carrying other people in your vehicle puts you at liability risks for their injuries, other driver and passenger injuries, and property damage. Many people believe that Uber provides auto insurance for its drivers, but this is only partially true.
Uber provides auto insurance for U.S. drivers only while the driver is logged in on the Uber app. Essentially, as long as you are working for the service, Uber will provide auto insurance. This insurance is far from comprehensive, however. Uber only provides auto liability insurance. This helps pay for medical bills and possible legal fees if you cause bodily injury or property damage while driving for Uber but doesn’t cover the vehicle itself or any accident that occurs while you aren’t working. Uber requires you to carry the minimum liability insurance required by your state, but this again doesn’t cover a lot of possible dangers.
Does Personal Auto Insurance Cover Me While Driving for Uber?
Say you’re driving for Uber and merge onto the highway only to hit a car that was driving up in your blind spot. The app was active, so Uber’s liability insurance should take care of the victim’s bills. But what about your vehicle?
Unfortunately, liability insurance won’t fix the damages to your car, and your personal auto insurance may not cover you—even if you have comprehensive auto insurance. This is because personal auto insurance is designed specifically for non-working purposes. If you crash while driving for money (aka for work), your insurance claim could very well be denied. This is why most insurance agencies offer commercial auto insurance, which provides similar coverage as personal auto insurance but is designed for vehicles used by a business or for work. If you frequently use your vehicle for Uber or another ridesharing service, you may need commercial auto insurance.
Does Commercial Auto Insurance Cover Personal Use?
Now you might be wondering if you need three policies: one with Uber, one for commercial and one for personal. You don’t have to worry, though. Commercial auto insurance policies typically cover personal use, as well.
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