By now, most people have heard of ridesharing, where one uses their vehicle to transport passengers for pay. Some know a person making a nice side income, and that makes them consider giving it a try. However, the decision to be a ridesharing driver shouldn’t be made lightly, and one should Contact American Insurance Partners LLC and consider their insurance coverage. Some policies are comprehensive while others won’t protect paying passengers during an accident.
What’s Covered by a Personal Insurance Policy?
A personal auto insurance policy covers family, friends, and any occupant who’s there with the driver’s approval (and who isn’t paying). Liability limits extend to any authorized driver, and medical payments apply if the driver has PIP or medical payment coverage. However, ridesharing is different. Personal insurance policies typically state that they don’t cover drivers who carry people or belongings for money.
What Drivers Can do to Protect Themselves
The two most popular rideshare companies, Lyft and Uber, provide some coverage to their drivers. Lyft has a $1 million limit when a driver is logged into the network, regardless of whether they are transporting passengers. Such limits are a great start, but a severe multicar accident with injuries can easily exceed that limit.
Some personal insurance policies, depending on the provider, may allow business endorsements. These are usually more affordable than commercial policies, and it’s important for drivers to be honest with Car Insurance Agents in Edmond OK so they know just what’s covered. A commercial auto insurance policy may be the best option for a driver who needs complete coverage.
Some people may think ridesharing and carpooling are the same thing, but that’s not always the case. A person’s location and insurer determine what is covered and what is not. It’s best to ask an agent if carpooling is covered on a personal policy; a business endorsement may be the easiest way to get the right coverage. These endorsements cost more, but they provide drivers with the peace of mind that comes with having the right coverage.
Ridesharing is effective for many people, and that’s why services such as Lyft and Uber are so popular. Getting the right insurance coverage before starting is essential, however. Knowing one’s coverage limits before taking paying passengers is key, and a consultation with Car Insurance Agents in Edmond OK is the best way to get that information.
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