Auto Insurance for Rideshare Drivers: What You Need to Know

Working as a rideshare driver has become an appealing occupation for many people. Whether you subsidize your primary income by driving at night or on weekends, or make ferrying passengers your full-time job, these opportunities can be rewarding and lucrative. However, while rideshare companies like Lyft and Uber have become fixtures of the transportation industry, their drivers must understand and address significant risk levels. Understanding insurance is particularly critical.

Understanding the Insurance Needs of Rideshare Drivers

Given that you’ve become a rideshare driver, you likely already understand many key rules of the road, including those involving auto insurance. These policies are the most common ways motorists throughout the country prove financial responsibility, which is legally required in most states when registering your vehicle.

Still, while standard, personal auto insurance can help pay for losses involving accidents and other damage sustained by your vehicle, rules and requirements are more complicated when you’re earning money while driving. Even though you may be using your personal vehicle as a rideshare driver, a standard auto insurance policy may exclude losses occurring while an insured automobile is used for business purposes. If you’re involved in an accident while transporting a passenger, you may lack coverage.

Some rideshare companies may offer limited coverage for drivers; however, these policies are typically limited and may pay only for liabilities. This could mean you’d be responsible for paying to repair or replace your vehicle following a crash or other incident occurring while you’re on the job. Fortunately, many auto insurance companies recognize the growing need for rideshare-specific coverage and may offer endorsements or specialized policies for you and your peers.

Addressing these coverage needs is critical, especially given that, as a rideshare driver, a safe and functional vehicle has become an integral part of your livelihood. Without suitable insurance, you could be left without a working car and lack the means to earn income. Additionally, if your insurance company finds you’ve been working as a rideshare driver without proper coverage, they may cancel your policy.

Get the Right Coverage

Contact GVL Insurance Company today to learn more about rideshare coverage options or to compare personalized quotes.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.