Auto Insurance Coverage While Working for Uber or Lyft

Ridesharing Apps and Auto Insurance

You have most likely seen the ads online that promise that you can make up to $35 an hour by simply driving people around. The ridesharing apps Lyft and Uber are not only gaining popularity with riders, but also with drivers who are looking to make a little extra cash. Before you decide to download the app to add more money to your pocket, take the time to consider what your new job will mean for your auto insurance coverage.

If you have your app turned on but are still waiting for a passenger and get into an accident, will you be covered? While both Uber and Lyft have insurance policies for their employees to use, it will not provide full coverage. While you are waiting to get matched with a passenger, you will only be provided with liability coverage through the app, which means that any damage you cause to another vehicle will be covered, but damage to your car is not.

While you may think that your personal auto insurance policy will then kick in to cover the rest of the damages and injuries, you may want to think twice. Typical personal auto insurance policies exclude coverage if you are using your vehicle for business purposes, which means you will be left paying for any damages out of your own pocket.

Before you decide to sign up for the ridesharing app, make sure to talk with your insurance agent. They can help guide you in the right direction to ensure that you have full coverage while driving for the app, which may include investing in a commercial auto insurance policy.

For more information on how to properly protect yourself in case of an accident while using the ridesharing app, contact the insurance professionals at Mayer Insurance in Apple Valley, Minnesota.