Ride sharing has taken the world by storm, and this trend has shown no sign of slowing down. It serves as a convenience for riders and drivers alike.
If you're a rideshare driver, or planning on becoming one, you'll need a commercial auto insurance policy. Why do you need this, and what type of coverage should you look for? Read on to find out.
Although rideshare drivers earn money for driving, many don't consider it to be the serious business that it is. Plenty of rideshare drivers simply offer their services on the weekend in order to earn a little extra cash. If you're planning on doing the same, you might wonder why you'd want to shell out more money for insurance when you already have a personal auto insurance policy.
It's simple: Your rideshare activities are likely not covered.
Most personal auto insurance policies won't cover you if you're driving for profit. If you drive for a rideshare company without commercial auto insurance, you're essentially driving with lapsed coverage — which is illegal.
Rideshare companies have worked to alleviate this issue by offering blanket commercial auto insurance coverage to their drivers. However, a rideshare company's policy might only cover you while you're on route driving to pick up an accepted rider or you're driving the rider to their destination. During the time you're waiting for new customers — or the time immediately after you drop off a rider — you aren't under their coverage. It wouldn't take much for another driver to accidentally back into you, and those damages wouldn't be covered.
If this is all new news to you, then read the terms of service for your rideshare company to find out what their insurance policy covers. Also contact your personal auto insurance company to see which situations they cover and exclude.
If you notice coverage gaps, a commercial auto insurance policy will likely help fill them. It is essential to get your coverage portfolio correct, or else your insurer could drop you from their service. Being dropped from coverage — no matter the reason — will serve as a red flag for any future insurers you might work with.
Get the right insurance coverage now! Call Atlantis Insurance at (786) 828-7819 for a free Miami commercial auto insurance quote.