If you currently drive for Uber or Lyft then hopefully you know what the companies require you to have in place as far as your own insurance policy before you can begin driving.
As far as personal coverages go Uber requires you to have liability coverage and comprehensive coverage. They also require that you be listed as an insured driver on the policy, even if the car you’re driving isn’t yours and that the car you’re driving match the vehicle on the policy. They also ask that the proof of insurance that you provide to them displays an effective date and an expiration date.
Lyft’s insurance requirements are slightly different, they require drivers to carry primary liability, contingent liability which is only for while in Driver Mode waiting for a ride request, contingent comprehensive and collision, and uninsured/underinsured motorist.
While the personal requirements of the drivers for the two companies differ the coverage they provide for their drivers when the apps are in Driver Mode are similar. Once either driver is in Driver Mode, meaning they’re available to accept ride requests, you’re then covered by policies that Uber and Lyft both have in place to protect their drivers while waiting for a ride. Once you accept a ride more coverage kicks in as soon as you’re en route to pick up your rider.
While you may think that because there are coverages available to you while driving for Uber or Lyft that you do not need to tell your personal insurance company, however, that is not the case. It’s important that you do inform them because many personal auto policies have exclusions in them for ride sharing. Meaning that if you were to get into an accident that was for some reason not covered by the overarching company’s policy and you hadn’t disclosed the fact that you use your vehicle to drive for ridesharing, then your company may very well deny any claims which you may file.
While many companies have exclusions specific to ridesharing, there is still a market where your agent can shop you if you do intend to begin driving for Uber or Lyft so hiding that fact from your insurance agent and carrier can only hurt you whereas sharing it can only help you to have the proper coverages.
Sources:
1. Lyft, Inc. “Insurance Policy.” Lyft Help, help.lyft.com/hc/en-us/articles/115013080548-Insurance-Policy.
2. Uber. (2019). Uber Driver-Partner Insurance – How It Works – What It Covers. [online] Available at: https://www.uber.com/us/en/drive/insurance/ [Accessed 31 Jul. 2019].