If you haven’t noticed, ride sharing companies such as Uber and Lyft are booming in popularity. If you’re thinking of becoming a driver for a ride-sharing service like Uber or Lyft [or a food delivery service like Door Dash], contacting an insurance agent should immediately jump to the top of your to-do list. A simple phone call to an agent could literally mean the difference between you being fully covered and having absolutely no coverage at all.

For starters, do you know when your personal auto policy stops and an Uber insurance policy [or similar vehicle-for-hire service] kicks in? There are coverage gaps you might want to know about, so let’s start with an easy example from a typical night on the job.

Imagine you’re driving around on a Thursday night, waiting for a potential customer – but you haven’t yet been matched with a client. Well guess what, my friend? This is where you’re left without coverage! It’s at this precise moment you’re now working as a driver for hire, which means you’re no longer covered through your personal auto insurance policy. Further, since you haven’t yet been matched with a client this also means Uber’s auto insurance hasn’t kicked in, either. It’s hard to imagine, I know, but if you were to have an accident with the ride-share app open but no client accepted, you’re completely without coverage.

What’s the solution? It’s possible to add an endorsement that would provide the necessary coverage, but it’s important to take a closer look at your existing policy. Not every insurance company offers this type of endorsement, so please be aware that a few have recently stepped into the world of ride-sharing insurance: Erie, SafeCo, and Progressive.

  • Erie Insurance offers a ride-sharing endorsement that adds $9-$15 per month on the average auto policy. The nice thing about Erie’s ride-sharing endorsement is that it covers you before, during, and after the hired ride.
  • SafeCo’s ride-sharing endorsement adds 7%-11% of the policy’s annual premium. With a clean driving record, this additional cost is very affordable considering it will ensure you’re covered at all times.
  • Progressive’s ride-sharing endorsement will also slightly increase your policy’s annual premium, but there’s nothing like peace of mind while using your vehicle for a ride-sharing company.

To be fair, once Uber’s coverage starts the limits are fairly impressive. Uber’s insurance will pay up to $1 million in liability limits per loss. Comprehensive and collision deductibles, however, are $1,000. The insurance company that Uber uses is called James River Insurance Company and is rated A- by A.M. Best, which is considered excellent.

If you works as a ride-sharing or food-delivery service driver [or know someone who does], please be smart about your insurance. And please, if you work with any of today’s ride-share or food-delivery services, check with them for the latest info on potential coverages.

Still have questions? Give us a call at 317-867-5433. And for additional reading, please check out Hoosier Insurance Agency’s blog.