Services like Lyft, Uber, Doordash, and GrubHub are popping up all over the country. These services make life a little more convenient and give people new income sources. When you work for one of these services you get to set your own schedule, meet new people, and put extra money in your pocket. However, there is a huge risk factor that isn’t discussed often…
Rideshare and Delivery Driver Insurance.
When you drive or deliver for one of these services, you may not be as covered as you think when it comes to your auto insurance. This is because most personal auto insurance policies have exclusions regarding “public or livery conveyance.” In other words, when a vehicle is being used for the transportation of people or goods for a charge, that time period isn’t covered under your personal auto insurance. This can include the time you use driving to pick up a person or goods, actual delivery or transportation time, and any time spent waiting for another pickup.
But the service company probably has insurance coverage, right?
Not always. It is important to find out what coverage your service company offers its drivers. Sometimes a company will only provide coverage during the actual delivery time and not when driving to pick up or while waiting for another dispatch. When reviewing any coverage options, pay attention to the following:
- Is the coverage contingent? If so, this means that the service company will only provide coverage if your own personal auto policy does.
- Do you see references to primary coverage? If so, the service company may pay before any other insurance policy does.
- Is there excess coverage? If so, this means that the service company will only pay after all other insurance options have been used.
- Are there differences between rideshare periods? Pay attention to the specifics of when coverage is active. Is it when you get a notification to go pick up a person or goods or does it start at the time of pick up?
So, you’ve reviewed the insurance options from the service company, now what?
Look for gaps. Are there time periods when you are excluded from your personal auto insurance policy, but the service company doesn’t provide coverage? If the service company provides coverage, is it enough? Does it include medical or comprehensive and collision coverage? Are there any deductibles and are they manageable?
How do you fill the gaps?
When looking at your personal auto insurance policy and the insurance options provided to you by the service company, you likely found some gaps. Don’t worry! With the rise in the use of these services, the insurance industry has adapted. Many carriers offer the option to add an insurance endorsement or policy. This Is special coverage, either tacked on to your existing policy or on its own, that provides coverage to fill the gaps.
We know insurance can be confusing and that is why we are here to help! If you drive or deliver for one of these services or are considering it, have a discussion with one of our licensed agents today. They can help you navigate what coverage options you have and make sure you are protected in the event of an accident. Working for these services allows you to make some extra cash, don’t go broke because of an uninsured accident on the job. Give us a call at 844-GANNONS today!