With popularity rapidly increasing in the ride-share industry it is no doubt that the discussion of insurance is top of mind...well at least it is for me. These companies offer great advantages for full time or even part time employment to make some extra money, and who doesn't want that? What you must clearly understand however is your responsibility and liability when you have a passenger / customer in your car. Let's have a chat...
Most of these ride-share companies offer insurance to its drivers, but it is limited as to the coverage and the time of when it is in force. Once you turn the app on and start "trolling" for a customer your personal auto insurance turns off! Let me say that again....when you turn on your app to look for customers, you have ZERO insurance coverage. Most of the ride-share companies will provide liability only coverage once you accept a customer and start driving to that customer, but you still have ZERO physical damage coverage for your car. Once you pick up a passenger, most ride-share companies will now provide both liability and physical damage, but when you drop them off, again you have ZERO coverage. This is a HUGE liability risk to you and your family. Be careful! So what can be done?
Many personal auto insurance companies are starting to come around and offering some coverage, but you must let your agent know that you are a driver for a ride-share company. Your agent will then make sure you are insured with one of the personal auto insurance companies that allow for this type of business and make sure your policy is properly endorsed. Again, two things to remember....
1.) Are you insured with an insurance company that allows for ride-share?
2.) Is your auto policy properly endorsed?
Your agent will also want to better understand if this is your full time job or just a part time gig. The cost of this endorsement is about 15% of your policy premium, which is not bad at all!
If you drive for a ride-share company, have a discussion with your insurance agent to make sure you are properly protected. The cost to do it right far outweighs the liability you could face.