Auto Insurance And Working For A Rideshare Company

6 October 2021 by Elijah Steward

If you drive for a rideshare company, you could be violating your auto insurance policy. Even if you only work for them once in a while, your private insurance won't protect you if you have an accident or a passenger is injured. Insurance works differently when you use your car to make money. Here is more to know about auto insurance and working for a rideshare company.

Do You Need Commercial Insurance?

You need special coverage any time you use your vehicle to make money. Your private auto insurance only covers you for everyday or preauthorized use. If you use your car in any other way, you must inform your insurance company.

Some insurance companies may cover you with commercial automobile insurance. Other companies may offer insurance specifically for rideshare use. Your state may require you to have this additional insurance if you participate in any rideshare or food delivery service.

Do Rideshare Companies Provide Insurance?

Rideshare companies do provide insurance, but there's a catch. It only covers you in addition to your own automobile insurance. Some companies only cover you for liability. If you have a commercial policy or rideshare endorsement, that insurance kicks in first. The rideshare company insurance covers what your insurance doesn't cover.

How Does Rideshare Insurance Work?

Rideshare insurance has four different stages. The first stage is when you are not on the app. The other three stages are when you have the app on, while you are driving to the customer, and during the ride. While you are in the first stage, you don't need special insurance. During all the other stages, your commercial or rideshare insurance covers you in addition to the company's coverage.

What Happens if One Doesn't Have Rideshare Insurance?

Even though rideshare companies have their own insurance, you must go through your own policy first. If you have commercial insurance or an endorsement, then you have no problem. However, if you try to file a claim and you only have personal insurance, you have a problem.

If you only have personal insurance, the company will not only deny your claim, they will likely drop you. If you decide not to file a personal insurance claim, you will not receive any insurance money from the rideshare company.

Rideshare or commercial insurance not only protects your customers but can also protect you. Accidents and incidents can happen when you least expect them. If you were working at the time, you may end up paying for everything out of your own pocket. Therefore, your best bet is to look into a rideshare or commercial auto insurance policy. Reach out to an insurance company like Clover Insurance for more information.  

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