One Thing You Should Do Before Becoming a Rideshare Driver

With the holidays quickly approaching, driving for a rideshare service such as Uber or Lyft might seem like a great way to earn some extra cash for gifts.

Make sure you’re covered by your auto policy so that you earn money instead of owing money in the unfortunate chance of an accident. The ridesharing company you are driving for will provide some coverage, but you may not be fully covered without an additional endorsement from your auto insurance provider.

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With the recent growth in popularity of ridesharing services, the insurance industry has been making changes to ensure that the driver is protected in different scenarios of an accident, without any gaps in coverage. Each insurance carrier has found different ways of handling this type of coverage.

Let’s look at an example of how one of our California insurance carriers handles ridesharing coverages.

Without any changes to a regular policy, Mercury Insurance will only pay for an auto claim when you are driving with the ridesharing app while it is off. Once the ridesharing app is turned on and before you pick up any passengers, you will not have coverage unless you have a special endorsement added. Then, once you are driving with passengers, you will have coverage under the ridesharing company.¹

In short, with Mercury’s auto insurance, your own car insurance will only provide coverage while the ridesharing app is off. It is a good idea to fill in the coverage gap by getting additional coverage to ensure that you’re fully covered in any situation.

If you’re thinking of driving for a ridesharing service or have any questions about your auto policy coverage, let us know. We’d be happy to walk you through your policy and make sure you’re ready to start as a rideshare driver.

Sources:
¹Mercury’s Insurance for Ride-Hailing Drivers. (2016). Retrieved from Mercury Insurance.