Insurance Coverage Information For Rideshare Drivers

A rideshare profession involves transporting customers to destinations within a service area. Many arranged transport services supply their drivers with increased automotive coverage during the times that they are actively driving to pick up an individual or transporting a client to a pre-scheduled destination.

Your Responsibilities As A Driver

If you are considering working for a rideshare company, the make and model of your vehicle and proof of personal insurance coverage must be furnished during the application process. If you are hired to be a driver, you will be provided with information about how the company's insurance coverage works.

Many insurance agencies offer rideshare coverage that an individual can purchase and have added to their existing policy. The additional coverage that is purchased independently by a driver may be necessary, if an individual is going to work for a ridesharing program that is private or relatively small. Some states require rideshare workers to obtain a commercial license and insurance. Contact an associate at the DMV to inquire about your responsibilities as a rideshare driver.

A large business like Uber or Lyft, however, will not require that a driver obtains additional coverage. The company will automatically provide coverage that is effective while active job duties are taking place.

How Coverage Works

Upon being hired, you will be provided with details about the insurance coverage that the company supplies. When you are not using the rideshare app and do not plan on picking up any customers, the only insurance that will be effective is the personal insurance coverage that you have purchased.

When you turn on the app and indicate that you are ready to pick up riders, a baseline amount of liability insurance that is provided through the rideshare company will be active. This insurance coverage will protect against the claims of other people who are injured or incur damages that are a direct result of an accident that you are responsible for.

Once you pick up a customer that you will be driving to a pre-planned destination, the coverage amount that the company provides will increase. The increased amount will remain effective until you have dropped the customer off at their destination.

Then, the insurance coverage will drop back down to the baseline liability that the rideshare company offers. Once you have finished working for the day and are not actively seeking customers, your personal insurance coverage will be the only active coverage that you will have while driving.

To learn more about getting rideshare drivers insurance, contact an agency like Clover Insurance.