October 12, 2020
For TLC Car Leasing or Vehicle Ownership, Uber Drivers Need to Know about Rideshare Insurance
Information on Uber Rideshare Insurance for drivers who use their own vehicles or obtain one from TLC car marketplace
Of the many benefits that being an Uber driver offers, there are some costs as well. While many are familiar with the price of TLC car rental, being properly insured is something that many new drivers may overlook.
Your standard auto insurance may not cover rideshare programs such as Uber or Lyft. This means that in case of an accident, you may be held responsible for payments for injuries passengers received in your vehicle or one obtained from a TLC car marketplace. However, most insurance companies will add a rideshare option to your insurance that will guarantee coverage.
For the most part, the fee added to your standard insurance policy is under $20 per month depending in large part on your driving record, but in most cases the cost is quite low. Considering that you will most likely need rideshare to avoid claims being denied when driving for Uber, this is a must.
One potential gap is when you have the Uber app on but have not been matched with a rider. In this case, Uber and Lyft offer minimal liability coverage during this time. This is another area where rideshare insurance can fill that gap. Otherwise, you might have to pay out of pocket for any expenses incurred.
How to Obtain Rideshare Insurance
The first place to look is your own insurance company. Most insurance companies will have a rideshare option for your car insurance. This assumes that your state has rideshare-friendly policies in place which most do. If you do not want to look up the state laws, then contact your insurance agent who has the answers.
Although inexpensive, there are a few bits of information you will need when signing up for rideshare insurance;
- Driver’s License
- Vehicle Title & Registration
- Auto Insurance Policy Number
- Make, Model, and Year of Your Vehicle
You may be asked about any rideshare experience that you might have, the company in which you work, and the average number of monthly rides along with the average mileage per trip. If you are just getting started, then you may be asked to provide an estimate.
Uber/Lyft Insurance Policies
Both Uber and Lyft provide full coverage when a passenger is in your vehicle, but there are exceptions that you need to know.
Logged, but No Rider: If you are logged in, but have yet to receive a rider request, then Uber and Lyft only offer limited liability which maxes out at $50K to $100K per person for personal injury and $25K for property damage. Rideshare insurance will cover such gaps.
Matched with Rider, carrying a Passenger, and Dropping Them Off: Here, Uber and Lyft will cover you fully up to $1M per incident if you have your own insurance coverage as well.
Also, check out any coverage that might be part of the TLC car marketplace that you obtained your vehicle. Whether you drive your own or use TLC car leasing, there are options under your personal insurance or from TLC itself that may offer additional coverage.