Are Rideshare Drivers Covered By Their Auto Insurance?
If you drive your personally owned auto for Uber, Lyft, or even a pizza delivery company, your personal auto insurance will not provide coverage should you be involved in an accident. Uber and Lyft do not provide the needed auto insurance coverage to protect you and your passengers. If you are an Uber or Lyft driver, your personal auto insurance may not cover this exposure. So call our office today to make sure you have the proper coverage.
The reason your personal car insurance doesn't cover you is an ages old exclusion for hauling others for a fee. This has always been excluded. It's just been in the spotlight again because of ride sharing services like Uber and Lyft and their mobile phone technology.
This issue became very real in 2013 when an Uber driver hit and killed a 6-year-old girl in San Francisco. The driver had only the state minimum auto liability limits of $30,000. The family sued both the driver and Uber. Uber does offer secondary coverage, but the driver must have a primary auto insurance policy in place.
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
1. Purchase a separate policy with at least a $1,000,000 limit.
2. Read any and all agreements so you know what your responsibilities are.
3. Keep your vehicle is good working condition.
4. Talk to your insurer before signing up and keep things on the up and up.
At Ludwig & Fawcett, Inc., we combine premium Auto Insurance with personalized service to give you the best coverage possible. Our insurance specialists will work with you one-on-one to find a policy that keeps you and your drivers protected at all costs – for peace-of-mind driving assurance.