What is Rideshare Auto Insurance?
If you’re employed as an Uber or other rideshare driver, you may already know that personal auto insurance doesn’t cover business usage. That means if you’re involved in a car crash while working, you may have to pay for repairs or medical fees yourself.
State law requires most ride-share businesses to insure their drivers. However, if you depend on your car for work and pleasure, you may need extra coverage. Keep reading to learn more about rideshare auto insurance.
Why Do You Need Rideshare Insurance?
Some insurers provide a ride-hailing endorsement for personal auto insurance. This endorsement could help fill in any gaps between the business policy of a ridesharing company and your own car insurance. Full rideshare auto insurance covers both personal and commercial coverage under one policy. Premiums, coverage types, and policy limitations vary by insurer and state. Ask your insurer to clarify local options.
The biggest rideshare companies offer minimal commercial insurance for their drivers who use their own vehicles for work, according to the National Association of Insurance Commissioners, or NAIC. Business usage includes when a motorist is picking up or transporting a passenger. Neither policy protects drivers when they are available but haven’t yet agreed to a ride request. A rideshare endorsement may fill the void. It extends some of your own insurance while you’re waiting for a new ride request.
What is the Price of Rideshare Insurance?
The cost will depend on the type of insurance coverage that you choose. A rideshare endorsement may cost less than standalone rideshare policies. The higher the insurance limits, the pricier the insurance will be. If you add a ridesharing endorsement to your auto insurance policy, your rideshare coverage maximum is usually the same as your personal policy’s. But you may need to set limits if you choose a separate rideshare insurance policy.
Contact us for more information on our rideshare auto insurance policy for Uber drivers. Our experienced agents will be happy to help you find the best policy for your needs.