If you've been thinking about working for a rideshare service in your free time to make some extra money, you're looking at a growing business. Nearly a quarter of the U.S. population uses rideshare services at least once a month. However, while a rideshare job is a great opportunity, it also comes with special considerations. Your insurance coverage is one important element to think about. Here's a look at a few things you need to know about your car insurance as a rideshare driver.
Does Your Standard Policy Cover You?
Many rideshare drivers are under the mistaken impression that, if they have an auto insurance policy, they're protected in the event of an accident during their rideshare services. The truth is that most personal auto insurance policies have an automatic exclusion for any commercial use of the vehicle. Since ridesharing services are considered commercial use (because you get paid for the service), your personal policy won't cover you.
Should You Get Commercial Auto Insurance Instead?
You might think that, instead of personal auto insurance, you need commercial auto insurance for your rideshare services. That's not actually the case either. Commercial auto insurance only covers the vehicle when it's being used for those business or commercial purposes. That means you'll be lacking in coverage for your personal travels.
How Can You Get Both Types Of Coverage?
The good news is that with the prevalence of ridesharing services comes the adaptation of policy offerings by the insurance industry. Most major insurance carriers now offer a rider for your personal auto insurance that incorporates coverage for your ridesharing usage. That way, you're not stuck trying to maintain both commercial and personal coverage on your car, which can lead to coverage gaps and other issues. Instead, you add an endorsement to your personal auto insurance policy to cover you and your vehicle when you're driving for the rideshare service.
Don't Rideshare Companies Offer Insurance?
Most rideshare companies do provide insurance coverage for their drivers, but that coverage is limited and is only available for very specific periods, such as only when you're actively transporting a passenger. That leaves you with a lot of vulnerable time that's not protected by their insurance or your personal auto policy. That's why it's beneficial to invest in a rideshare endorsement through your personal insurance company.
Talk with your insurance agent or contact a provider like Clover Insurance for more information. They can help you find the coverage options that will ensure that you are protected.
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