Auto Insurance For Rideshare Drivers

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Auto Insurance For Rideshare Drivers – If you’re thinking of getting more money by driving for a rideshare service, it’s a good idea to buy rideshare insurance. How much does rideshare insurance cost? It depends on which provider you buy the policy from and how much coverage you buy.

According to Progressive, rideshare insurance is a policy designed to meet the needs of drivers who work for services such as Uber and Lyft. Most insurance providers allow you to purchase rideshare insurance as a hybrid insurance package or you can add it to your existing insurance policy. Typically, a trip sharing policy covers damage to your vehicle and medical treatment for you and your passengers and is less expensive than traditional commercial insurance. If you drive part-time, rideshare insurance gives you flexibility not available with commercial insurance.

Auto Insurance For Rideshare Drivers

Advance notice that while ride-hailing and delivery services may offer limited insurance to their drivers, it usually only covers you when you have a passenger in your car. Purchasing additional trip separation insurance covers those gaps that occur when you are waiting to match a passenger or on your way to pick up a passenger. There are several risks that come with giving up a trip sharing policy, including:

Rideshare Driver Insurance

You don’t want to pay out of pocket because of coverage gaps, especially if you’re trying to pay off student loans, save for a vacation, or try to cover household expenses.

How much you end up paying for trip sharing insurance depends on how much coverage you buy. Nerdwallet points out that extending your personal policy often costs less than buying a hybrid insurance package. Your liability limits are also factored into the cost of a policy, meaning the higher the limits, the more you’ll pay. If you choose to extend your personal cover, your trip sharing limits will usually match your personal policy. For example, if your current policy carries a liability limit of $100,000, then your travel sharing extension will also have a liability limit of $100,000.

Nerdwallet also notes that because rideshare insurance is only sold as an add-on or as a hybrid package, you can only purchase it from your current provider. For example, if you have a personal car insurance policy with Allstate, you can’t buy ride sharing coverage from Mercury. When deciding between a personal policy extension or a hybrid package, you should do the following:

In a survey of major insurance providers, Nerdwallet collected quotes to see how much they charge for trip-sharing coverage. Here’s what they found:

Rideshare Insurance 101

When deciding which rideshare insurance provider is best for you, it’s important to choose the one that best meets your driving needs. Investopedia looks at some of the top providers and weighs the pros and cons of each. They report that a ride sharing policy from GEICO:

The GEICO rideshare plan is a hybrid package that covers your vehicle when you use it for business or pleasure. This means you do not have to file a claim with the ride sharing service you drove for in the event of an accident. Your package with GEICO will cover the costs.

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