What Uber And Lyft Drivers Need To Know About Rideshare Insurance?

There is a growing popularity among Americans using rideshare services such as Uber and Lyft to get from one place to another. And there are so many benefits to riders choosing to do so – from reducing their environmental footprint to protecting themselves and others on the road when they have been out drinking – ridesharing services provide an invaluable service to the community. But what if you decide you want to join a ridesharing service as a driver? It certainly can be tempting to join a ridesharing service as a driver even if it is only as a side hustle because you can work on your own schedule and make extra money when you need to. But there are a few things you need to know about your responsibilities for insurance coverage before you decide to sign up as a driver for a ridesharing service.

What Is Rideshare Insurance?

In simplest form rideshare insurance is simply automobile insurance coverage that offers extra coverage that personal auto insurance would not cover while a driver is working for a ridesharing service company. In Florida, the law requires that all drivers carry a minimum of $10,000 of personal injury protection (PIP) coverage and $10,000 of property damage liability coverage just as a personal driver. However, once a driver is logged into a ridesharing app, Florida’s law requires the rideshare driver to carry higher limits of insurance. These higher limits require the rideshare driver to carry a minimum of $50,000 of bodily injury coverage per person, $100,000 of bodily injury coverage per accident, and $25,000 of property damage liability coverage per accident for any time they are logged into the ridesharing app but don’t have a passenger assigned to them. During any period that a driver has a passenger in their vehicle the employing company’s rideshare insurance coverage will provide third-party liability insurance coverage with a minimum of $1 million in bodily injury and property damage coverage.

Do You Need Your Own Rideshare Insurance Coverage As An Uber Or Lyft Driver?

It is important to understand that as soon as you log into the ridesharing app as a driver, you will no longer be covered under your personal auto insurance coverage. And if you have not yet accepted an assignment and don’t have a passenger in your vehicle, you also either won’t have or will only have limited coverage under the ridesharing company’s insurance coverage. Just to be clear, this is not anything new with your personal auto insurance coverage – personal auto insurance companies have always excluded coverage when transporting someone else for a fee, it just has never been a popular issue until the widespread use of technology and ridesharing apps like Uber and Lyft started to gain popularity. Additionally, if you are a rideshare driver and have not disclosed this to your personal auto insurance company, they have the right to drop you from your coverage if they find out you are a rideshare driver. Because the rideshare coverage offered by rideshare companies such as Uber and Lyft are minimal and include deductibles and because of the risk you carry with your personal auto insurance coverage as a rideshare driver, it is important that you carry your own rideshare friendly insurance coverage or commercial auto insurance coverage.

If you are thinking of becoming a driver for a ridesharing company such as Uber or Lyft and want to review your current auto insurance coverage and discuss the additional coverage you will need, contact the licensed insurance agents at Fear Now Insurance today!