Hailing a taxi may be on its way to becoming a thing of the past. With apps like Uber & Lyft that allow a user to request a ride from just about anywhere, standing on the curb waiting for a taxi may become one of those things we will have to explain to our kids when they see it in old movies. Recently, many local governments & municipalities have been pondering over the legalities of these ridesharing companies, the central argument being that taxi drivers must follow a slew of regulations that Uber & Lyft drivers seem exempt from.
Driving for Uber & Lyft can be a profitable gig for people looking to make a little extra cash. However, there are some things to consider before picking up your first fare. According to Nerd Wallet, “even if it’s legal for you to become a rideshare driver, your auto insurer might not like it.” Generally speaking, Uber & Lyft both provide a good deal of coverage. But there are still some instances in which a rideshare driver may be liable for losses that would fall on his or her own personal auto policy. Unless you’ve purchased a policy specifically for ridesharing work, your insurance company is “unlikely to cover any expenses arising from accidents that occur when you’re driving for Uber or Lyft.” Furthermore, if you fail to disclose your work for either rideshare service, they can suspend your coverage altogether.
The good news is that many insurance carriers are now offering policies to supplement the coverage already in place by Uber & Lyft. This extra coverage will offer protection for a rideshare driver while he or she is logged into the app & waiting for a fare, but does not have customers in the car at the time of the accident, as neither Uber nor Lyft are liable in those instances.
If you’re a rideshare driver or if you’ve considered becoming one, we highly recommend doing some research before your next fare. Be sure to discuss possible options with your personal auto insurance agent and check out The Ride Share Guy’s insurance page to get a better idea of what coverages are available in your state.