Driving for a ridesharing company offers a convenient way to make extra money, but you'll want to make sure you have adequate coverage for your vehicle. If you are considering work as a rideshare driver, here are some things you should know about your vehicle's insurance.
Inform Your Insurance Company
Before you begin working for a ridesharing company, inform your insurance carrier. You may be able to drive on your current policy, but some carriers may not provide coverage for your vehicle if it is used for commercial purposes. Your insurance agent can help you to determine if your vehicle use qualifies for commercial or ridesharing insurance or if you can stick with your personal insurance policy. Commercial use of a vehicle as it relates to ridesharing typically includes:
- Use of the vehicle as a taxi
- Use of the vehicle to deliver goods
- Use of the vehicle to chauffeur customers
Find Out What Your Ridesharing Company Offers
Your ridesharing company may offer insurance coverage for its drivers, so you'll want to know what is included before you purchase any additional insurance coverage. You may be able to purchase gap coverage instead of investing in a full commercial or ridesharing policy. Be sure to ask about how to handle insurance information in the event of an accident; you may need to provide proof of your insurance policy as well as that of your company. If your ridesharing service does not offer coverage for its drivers, talk to your auto insurance company about purchasing a ridesharing policy.
Commercial Versus Ridesharing Insurance
Commercial and ridesharing insurance have a few key differences, so you'll want to know how each one works before you choose a policy. Commercial insurance covers your vehicle as part of your business, while ridesharing insurance is created to cover both your personal and professional use of the vehicle. The coverage from a ridesharing policy essentially changes depending on how the vehicle is being used, but the rules may vary depending on which state you live in. Claims may need to be filed differently depending on whether your car is in an accident while you are working or while you are using your vehicle for personal driving. Be sure to talk to your insurance company before purchasing a policy so you know exactly what type of coverage is included.
Your car insurance company can provide you with any answers you have about your coverage before you start driving for a ridesharing company. Be sure to ask any questions you have so you know you have the right coverage level for your vehicle.