Last Updated on: August 18th, 2016
How do you know rideshares are here to stay? Because the insurance industry is finally taking notice and has been offering rideshare insurance options. Though that might sound like just another way to make money off of people trying to work to make a living, there is an unfortunate truth to the necessity. Statistically, out of a poll of thousands of rideshare drivers, about ninety percent do not have insurance that will cover rideshare incidents. In fact, there are a good many who drive with their everyday insurance and get by on that alone.
We can already hear groans out there – “more insurance? Do I really need rideshare insurance?” Considering the risks, trust us, you need one. In fact, said risks include: being dropped by your insurance company entirely, little to no coverage due to Uber and Lyft not providing collision coverage during Period 1 (see below) and being stuck with the total cost of the repairs and extra liability out of pocket; you can make an excellent income as a rideshare driver, but an accident claim can happily take that away.
So, what exactly are rideshare periods? The simple answer, as defined by rideshare insurance, is:
Period 1 entails being online and having no ride requests. Bear in mind, Uber and Lyft do not offer collision coverage during this time.
Period 2 is being online and having a ride request e.g being enroute, waiting to pick-up the rider, etc.
Period 3 is being online and having a rider in the car.
Simple enough, right? Well, not from the perspective of rideshare drivers and insurance agents in some cases. Because rideshare friendly insurance is a fairly new offering, it is not unusual to run into insurance companies that have no idea they even offer something in that vein. The three most common plans seem to fall under: rideshare friendly personal policies (standard policies but without the fear of the company ditching you), commercial coverage (expensive but with options and Period 1 coverage by itself.
The best thing rideshare drivers out there can do is to do a lot of research on their options. I, and many others, could nag incessantly about remaining safe on the road but, let’s face it, some drivers out there just want to watch the world burn. See what your options are and stay firm with agents who try to remain in the dark on rideshare friendly insurance.
Most importantly, stay safe out there.
For insurance options, the Rideshare Guy has an extensive list of companies offering rideshare insurance available in every state. See your options today!