Ride-sharing companies like Uber and Lyft provides prearranged rides for compensation using their platform that connects drivers with riders.
A rideshare, is a efficient way to provide ride to two or more passengers sharing a car during a trip. This is common in large transportation network companies like Uber and Lyft.
These companies use ridesharing as a way to improve fuel efficiency while cutting down the transportation cost for their clients.
As ridesharing continues to grow, major auto insurance companies have expanded their auto insurance policy to cover the gaps left out by general auto insurance and the coverage provided by rideshare companies to their drivers.
This article discusses issues that are related to Uber insurance and Lyft insurance.
Who Needs Uber Driver Insurance?
A rideshare insurance is crucial for ridesharing drivers, more so those driving for Uber and Lyft cab aggregators.
Insurance experts recommend a ridesharing policy because a personal auto insurance policy does not cover you in case of accidents while driving a rideshare vehicle working for a rideshare company.
Depending on your insurer, rideshare insurance policy covers you whether you have a passenger or not, and it covers you after logging into your ridesharing app up to when you accept a ride request.
Furthermore, some rideshare insurance policy might cover you after, during, or before a ride share.
Given that different auto insurance companies offer different Lyft driver insurance policy coverage, you ought to shop around for a company that provides more coverage at a reasonable price.
Where can you get Uber or a Lyft Driver Insurance?
You may not find this type of insurance policy in many auto insurance carriers because it is relatively new.
You may want to purchase a commercial auto insurance policy in case you can’t find a rideshare insurance in your state.
Some of the auto insurance providers who offer a Uber and Lyft insurance policy in United States include;
• Erie Insurance
• Famers Insurance
• Geico Insurance
• Allstate Insurance
• Mercury Insurance
• Progressive insurance
• Safeco Insurance
• State Farm Insurance and
Below is a brief review of some top auto insurance companies that you might consider when looking for a uber driver insurance or lyft driver insurance.
1. Erie Insurance
Erie car insurance serves Washington DC, Illinois, Pennsylvania, Virginia, Tennessee, Kentucky, Maryland, and Indianapolis. You may also check on Erie Insurance website to see if they serve your state.
2. Farmers Insurance
Some of the states served by Farmers Insurance include;
Geico is another insurance company that offers a rideshare insurance policy. Compared to traditional insurance policies, a rideshare policy provided by Geico Insurance may cost additional amount of money.
This auto insurance provider serves states like;
• North Dakota
You can check on Geico Insurance website to ascertain if Geico serves your state and ask for a insurance quote.
4. Mercury Insurance
Mercury auto insurance serves Arizona, Texas, Illinois, Oklahoma, California, and Nevada. Unlike the car insurance providers who serve all rideshare transport networks, this auto insurance company offers its rideshare policies exclusively to Uber and Lyft.
5. Safeco Insurance Company
Safeco insurance company offers rideshare insurance policies to all transport networks. The auto insurance company serves Arizona, Tennessee, Oklahoma, Minnesota, Illinois, Columbia, Oregon, and Utah, among other states.
Why do Rideshare Drivers need a Lyft Insurance Policy and what are Uber Insurance Requirements?
Most drivers do not understand the reason why they should have rideshare insurance. If you are one of such rideshare driver, below are reasons why you should consider applying for this critical auto-insurance policy.
• You need a rideshare insurance policy because your car insurance provider can cancel your personal insurance policy if they discover that you are driving as a commercial driver for Uber or Lyft and you do not have a rideshare insurance coverage.
• There is a likelihood that other auto insurance providers will charge you high premiums if your car insurance provider drops your personal insurance policy.
• Uber and Lyft do not provide adequate coverage. A rideshare insurance protects you against the gaps left out by the rideshare company.
• A rideshare insurance policy lets you comply with your Uber insurance requirements that need you to meet a specified minimum when driving a particular type of vehicle.
Types of Rideshare Insurance Policies
There are different types of driver insurance policies offered by various companies. Standard policy include;
1. Commercial Rideshare Policy
The commercial rideshare insurance policy is an expensive plan provided by some insurance companies which covers rideshare drivers.
Despite the fact that the commercial rideshare insurance is expensive, it covers you before, during, and after a ride.
2. Period 1 Rideshare Policy
This rideshare policy covers you during period 1 when Uber and Lyft don’t provide coverage, and they provide reduced liability coverage.
As such, the period 1 rideshare policy offers collision coverage and other liability coverage.
Some of the companies that provide this policy include Farmers Insurance and USAA.
3. Rideshare Personal Policies
Rideshare personal policy works like any other personal auto insurance policy. Unlike the traditional personal auto insurance policy, your auto insurer cannot cancel your policy if they discover that you are a rideshare driver.
Who is Covered by your Rideshare Insurance?
A rideshare insurance covers the policyholder and family members who use the insured vehicle. However, you should make sure that all family members who use the car are listed in your policy.
Besides the policyholder and family members, rideshare insurance also covers the passengers in your vehicle, property damages, and may cover damage to your vehicle.
The benefits differ depending on your provider and type of rideshare insurance plan you buy.
A rideshare insurance is a policy that protects a policyholder, family members, and passengers using a rideshare vehicle.
This insurance plan covers the gaps left out by rideshare transportation networks like Uber and Lyft.
Some insurance companies that offer rideshare insurance include Erie Insurance, Geico Insurance, Allstate Insurance, Farmers Insurance, and USAA.
Just like any other auto insurance policy, make sure that you shop for a good Uber Insurance or Lyft Insurance deal.
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