Ride Sharing - The Impact on Your Personal  Auto Insurance Policy

So you decided to make a little extra money by signing up as an “Uber” driver! 

Ride Sharing is becoming a popular option to earn extra cash, but there are some misconceptions when it comes to whose insurance covers what. How do you know when your personal auto policy is considered "in force” or when the ride share company policy is “in force” and is there a time when neither is in force?

Technically when a person is providing transportation in exchange for payment this is considered commercial use of an automobile and it might VOID your personal auto insurance policy, so you need to check with your current carrier as to their specific guidelines!  There are three distinct time periods for coverage while driving for a ride share company:

  1. Driving for personal use
  2. The ride share app is initiated but no passengers have been picked up 
  3. Passenger (s)  in the vehicle. 

Time Period 1- Driving for personal use, this is covered by your personal auto insurance policy.

Time Period 2- Ride share application is turned on, this is a gray area, not covered by your personal insurance and not covered by the ride company.

Time Period 3- Passenger in the vehicle, covered by ride share company.

How to get the Special Coverage You Need!

Many insurance companies have addressed the “time period 2” with a “ride share” endorsement.  It is important for you to talk to your insurance company and request that this endorsement be added to your personal auto policy if you are working for one of the ride share companies such as Uber or Lyft, otherwise you might find yourself in situation with no coverage when involved in an accident driving to a pick up location or after a drop off while still on the ride share app.

Farmers does offer the “ride share" endorsement, so contact the Luci Temple Insurance Agency for quotes for your auto!  512-913-9637

Posted 5:00 PM

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