While personal auto insurance may offer some coverage while driving for Uber or Lyft, if you get into an accident, your personal car insurance policy will probably not pay for damages or injuries. That’s because most personal car insurance policies have commercial activity exclusions that remove coverage for vehicles used to make money.

That’s why it’s important to have commercial auto insurance when driving for Uber (or any other rideshare company). Commercial auto insurance covers vehicles used for business purposes. So, if you use your vehicle to drive for Uber, commercial auto insurance will cover you in the event of an accident. It’s even required in most states.

In this article, learn all about auto insurance when driving for a rideshare company.

Types of Commercial Auto Insurance Coverage

As a rideshare driver, your personal auto insurance will not provide coverage if you get into an accident while on the job. When you sign up to drive for a rideshare company like Uber or Lyft, to protect yourself you must have commercial auto insurance. Commercial auto insurance differs from personal auto insurance in several ways and provides more comprehensive coverage for vehicles used for business purposes. Here are some coverage typically included in a commercial auto insurance policy:

• Liability Coverage: This type of coverage will protect you financially if you are found at fault in an accident. It will pay for damages to the other person’s vehicle and any medical bills they incur. In some states, you may require a certain amount of liability coverage.
• Collision Coverage: This type of coverage will pay for damages to your vehicle if you are in an accident, regardless of who is at fault. If your vehicle is totaled in an accident, this type of coverage will pay to replace it.
• Comprehensive Coverage: This type of coverage will pay for damages to your vehicle that are not caused by accident, such as theft or vandalism.
• Personal Injury Protection: This type of coverage will pay for medical bills and lost wages if you are injured in an accident. It will also pay for funeral expenses if you are killed in an accident.
• Uninsured/Underinsured Motorist Coverage: This type of coverage will pay for damages to your vehicle if you are in an accident caused by a driver who does not have insurance or does not have enough insurance to cover the damages.
• Personal Loss Coverage: This coverage will reimburse you for personal belongings damaged or stolen from your vehicle.

Why Do I Need Commercial Auto Insurance When Driving for Uber?

Outside of the law requiring commercial auto insurance in many states, you might need commercial auto insurance when driving for Uber for several reasons.

1. If you cause an accident while carrying passengers, your personal auto insurance policy will not cover their medical bills and other expenses.
2. If you damage another vehicle or property while working, commercial auto insurance will help to pay for the repairs.
3. Commercial auto insurance can protect against lawsuits that may be filed against you because of an accident.

What Are the Risks of Not Having Commercial Auto Insurance?

If you cause an accident while driving for Uber without commercial auto insurance, you will probably be personally responsible for any damages. This could include medical bills, property damage, and legal fees. You might also lose your personal auto insurance coverage if your insurer finds out that you were using your car for business purposes.

Driving without commercial auto insurance is a risky proposition, and it’s not worth taking. However, if you are involved in an accident while working, commercial auto insurance can help to protect you from financial ruin. Be sure to speak with your insurance agent about getting the coverage needed.

What Is Rideshare Insurance?

Rideshare insurance is a less expensive alternative to commercial car insurance and is available to Uber and Lyft drivers. Rideshare insurance is designed to cover you when you are working, but will not cover you when you are not working. This type of insurance is typically less expensive than commercial car insurance because it only covers the time you are actively working.

While a cheaper might sound appealing, you’ll also need to have personal auto insurance, so overall it might not actually be cheaper. Also, cheaper isn’t necessarily the route you want to take with insurance. Talk to your insurance agent to find out what auto insurance option is best for you based on coverage and pricing.

Contact An Insurance Agent

If you’re considering driving for a rideshare company, the first step is to contact your insurance agent to ensure you have the right type of coverage in place. Depending on the state you live in, and the time you spend driving for Uber or Lyft, you may need a commercial auto policy or a special endorsement to your personal auto policy.

Keller Insurance Services specializes in commercial auto insurance, and we can help you find the right policy to protect you, your vehicle, and your passengers. Contact us today to get started.