Are you or a member of your household considering becoming a driver for Uber or Lyft? Driving for ride-hailing services is flexible, efficient, and can prove lucrative. But before you do, understand the risks. Ride-hail drivers transport the public for a fee, and therefore in the eyes of our courts are the same as a taxi service.
Personal Auto Insurance and Ride-Hailing Services
Most personal insurance policies exclude business operations, and even go so far as to exclude coverage when transporting passengers “for hire”. These exclusions are nothing new, and have existed for decades. This is because personal insurance policies expect to cover activities such as driving to work, around town, or even the occasional cross-country road trip while on vacation. However, they neither provide the protection, nor are they rated, to handle driving for business.
Anytime the driver is logged into the ride-hailing dispatch app, they are waiting for a fare, and therefore are engaged in business operations. The same goes when transporting passengers. Because of this, standard personal insurance policies will not provide coverage for liability for an accident or physical damage to the driver’s vehicle during these times.
Today, Uber, Lyft, and other ride-hailing companies provide various degrees of insurance for their drivers. Typically, they offer protection when a driver accepts a fare, is enroute to pick them up, all the way until the passenger exits the vehicle.
Coverage provided by the ride-hailing business is typically only liability protection. This means the driver is protected for injuring other people or damaging other vehicles or property. However, they are not protected for damage to their own vehicle.
Ride-Hailing Insurance Solutions
Talk to your insurance agent. Many personal insurance companies now offer ride-hailing coverage endorsements to fill these gaps. It will cost extra, but only because the policy covers more risk. Grange, one of our insurance carriers, offers this coverage and produced the video below that explains ride-hailing insurance risks.
If your insurance carrier does not offer this protection, or if you aren’t a client of Bankers Insurance, let us quote your coverage with one that does. Don’t have your agent’s contact information handy? Grab it from your Client Service Portal. We are grateful for the opportunity to serve you!