This question is often overlooked, sometimes with negative consequences for drivers participating in the ridesharing economy. Drivers participating in ridesharing programs such as Uber or Lyft often assume that because they have personal auto insurance, they are also covered when driving passengers for a fee. However, this is not the case. Most insurance companies exclude coverage on personal auto policies for drivers participating in ride sharing programs, whether it be full-time or part-time. This means that if the driver were to get into an accident while driving in a ridesharing program, your personal auto insurance company will deny your claim.
How can drivers protect themselves to ensure that they are covered? To start, you should review your contract with the ridesharing company you are working with to review what is covered. If any questions remain after reviewing your contract, get in touch with your ride sharing company for more information. In addition to this, you should also get in touch with your insurance broker to discuss and address your personal liability coverage.
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