If you drive your personally owned auto for Uber, Lyft, or even a pizza delivery company, your personal auto insurance will not provide the coverage you need, should you be involved in an accident. Uber and Lyft are "rideshare" services that compete with taxis and more traditional car transport services. These companies do not own or operate their cars and do not hire their drivers directly. Drivers are independent contractors who drive their own vehicles to pick up and drop off customers. Here are two big coverage gaps:
- Your personal auto insurance policy excludes liability for hauling others for a fee.
- These ride share companies also require liability limits above the state minimums.
There are a number of insurance companies now offering specific auto insurance coverage for ride sharing risks.
Here are a few tips for ride share drivers.
- Purchase a separate policy with at least a $1,000,000 limit.
- Read any, and all, agreements so you know what your responsibilities are.
- Keep your vehicle in good working condition.