Insurance for Uber drivers and Lyft drivers is different than regular car insurance. Are you an Uber or Lyft driver? If so, you may have a MAJOR coverage gap in your ridesharing insurance. We can help!
Car Insurance – What’s the Problem?
Most Indiana car insurance companies exclude coverage when you have a customer in the car or are available for hire. This means that your insurance liability coverage, uninsured or underinsured motorist coverage, and medical payments coverage will NOT be paid out on a loss. This could be disastrous to you as an Uber driver.
Imagine this scenario: You activate your Uber app on a Friday night, looking to make some extra money. You’re excited because lots of people are out, and you’re sure you’ll get some customers. You’re looking at all of the people when, all of a sudden, BAM! You rear-end someone. Your airbag goes off and you know that you’ve just caused a major accident. The people you hit are severely injured (to the tune of $200,000) and you total their brand new car that they just bought for $51,000. When your car insurance company realizes that you were available to pick up a customer as an Uber driver, they deny your claim. Your insurance with Uber will pay part of that loss, but you’ll likely be responsible for over $100,000. Plus, there is NO coverage for your car! That Friday night you were so excited about has now become your worst nightmare.
But aren’t I covered?
You may be thinking, “That’s okay, my ride-sharing company provides coverage.” Typically Uber insurance will cover the driver when available for hire or when a passenger is in the car. (The insurance provided by Uber and Lyft while a passenger is in the car is $1,000,000 in liability coverage as of the writing of this article). However, a ride-sharing insurance deficiency exists while you are available for hire but don’t have a passenger in the car. So if you are “on the clock” as an Uber driver or Lyft driver, your personal auto insurance policy probably won’t cover you and your ride sharing insurance (e.g. insurance from Uber or Lyft) may cover you with limits that are much lower than you’d like. According to one study, this is 37% of the time that you’re driving for a ride-sharing service.
The solution for insurance for Uber drivers
At the Curry Agency, we have a simple solution to fix the problem. Many of our preferred car insurance companies offers insurance for Uber drivers or Lyft drivers that fixes the coverage gap described above. Not everyone will qualify, but if you are a good driver, we can offer you a policy that will be affordable and protect you from the nightmare scenario described above. This doesn’t cost a lot, because it’s a simple option from one of our leading insurers.
To learn more about this please call our Fishers independent insurance agency at 317-644-1770 and ask us about car insurance for Uber drivers. Click here to learn more about car insurance.