By Martin Johnson III | June 26, 2019

Ride Sharing Insurance – The Three Most Common Questions

Uber and Lyft drivers face many challenges when it comes to car insurance, and understanding your needs, risks, and legal requirements are crucial. There are also several tricks you might consider using to make your Lyft or Uber insurance coverage more affordable.

Three of the most common questions regarding rideshare insurance are:

Which auto insurance should I get?

This is easily the most frequently asked question when it comes to Lyft and Uber car insurance, but answering it requires a bit of background.

Your personal car insurance policy almost certainly does not cover ridesharing, because auto insurance companies think of Uber driver insurance like business coverage. And like business insurance, your Lyft or Uber insurance policy will cover different things than your personal policy. You should also be aware that Lyft and Uber insurance coverage is likely to be more expensive than personal coverage.

It is very important to know when your personal insurance and rideshare insurance are in place. This is not always determined on having a passenger, there can be gaps in coverage if you are not careful enough. The difference between having coverage and not having coverage relies on understanding when Lyft or Uber’s policy takes effect and when your policy does not.

Which auto insurance is cheapest?

When seeking ridesharing insurance, this might not be the angle you want to take. While low-cost rideshare insurance might be attractive to those on a tight budget, it may not offer the protection you need to make sure you, your passengers, and your automobile are adequately covered, which could lead to much higher costs in the event of an accident – even one that isn’t your fault!

Which auto insurance is the best?

To determine the best Lyft or Uber auto insurance policy, you’ll need to prioritize your coverage requirements. While some might require high collision coverage, you might be an excellent driver with a sterling record, which means your collision will likely be less expensive, allowing you to purchase a higher level of medical coverage. Before making a final decision on your insurance priorities, it’s wise to consult with an insurance agent you trust.

Auto insurance for Uber drivers is similar to personal insurance in at least one respect: you can lower your premiums by raising your deductible. If you have enough capital to pay minor costs out of pocket, you can save money in the long run by ratcheting down your monthly fees.

Finally, consider bundling your personal and professional car insurance for Uber drivers. By packaging your private and ridesharing policies together, we might be able to apply available discounts.

For information on this and any other type of insurance policy, please call us. We are happy to provide you with a free review!