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Beene Insurance Agency Blog

All You Ever Wanted to Know About Insurance

Thinking about driving for Uber or Lyft? Better Think to call us first!!

Most folks have taken a ride share  to get around either in your own town or while on vacation. In fact, many people are supplementing their income or even working full time as a driver for Uber or Lyft. When my wife and I were in France recently, we used Uber quite often so it's truly a world wide phenom!

While most insurance companies offer coverage as an endorsement if you use your car in a ride share capacity, it is IMPERATIVE that you call us so that we can advise you properly and make sure we add the endorsement to your policy.

Consider the following :

Driving For UberX Could Invalidate Your Personal Auto Insurance Policy

Your personal auto insurance policy may not provide coverage for you if you drive for a service like UberX. This is because personal car insurance policies have a list of exclusions, and they often include “driving-for-hire.” If you are driving for UberX or a similar service, you should check with your insurance company to confirm whether your policy covers this “commercial driving.” If it does not, you will want to consider purchasing supplemental commercial auto insurance, though for many part-time drivers, this may not be financially feasible.

Uber Provides (Some) Auto Insurance Coverage… When The App Is On

Uber requires all of their drivers to have car insurance, and provides supplemental insurance coverage, but only while the app is on. Here’s how it works: When the Uber app is off, a driver is covered by their own personal car insurance. When the Uber app is turned on, a low level of liability insurance becomes active. When a trip is accepted, a higher level of coverage kicks in and remains active until the passenger exits the vehicle. Previously Uber had only offered coverage when a passenger was in the car, but the company updated their policy after a series of accidents which resulted in various lawsuits.

Lyft and some of the other ride-sharing services point to the $1 million per incident excess liability coverage that certain states require them to carry. The policies are designed to deal with liability claims, which a driver’s insurance doesn’t cover. But these policies won’t cover a driver’s car – you must rely on your own personal auto insurance policy.

As always, as your independent personal insurance advisor, I can make sure you are covered properly. If your current insurance doesn't offer the coverage I can always find another carrier who will! That's why I am an independent Agent--- I work for YOU!

As always we thank you for your business and appreciate your referrals!

Be SURE you KNOW before you GO!!!