What is a rideshare insurance?
The Guru Take
Rideshare Insurance as explained by Geico
At a basic level Rideshare insurance will cover you and any passengers you may have in your car in case of an accident. The below from Geico explains the ins and outs of rideshare insurance and what you would be covered for while driving for Uber, Lyft, etc.
Liability coverages are typically required by the state and help protect you in the event that you are in an at fault car accident. Basically they cover the other people and their property. Whether it's damages your car causes to property or injuries to other people, make sure you are covered. These include:
Property damage coverage pays for damages caused by your vehicle to someone else's property. It also provides you with a legal defense if another party files a lawsuit against you.
This covers you in the event that you injure or kill another person while using your car. It can also provide a legal defense if another party in the accident files a lawsuit against you.
Pays for damage to your car when your car hits, or is hit by another vehicle or object regardless of fault.
Comprehensive Physical Damage Coverage:
This pays for losses resulting from incidents other than collision. For example, damage to your car if it is stolen; or damaged by flood, fire, or animals.
Medical payments, no-fault or personal injury protection:
Depending on the state, this coverage goes by different names. No matter the name, this coverage typically pays for medical expenses of injured people inside of your vehicle. This coverage could also apply if you are injured as a pedestrian.
Uninsured Motorist Coverage:
Pays for injuries to you caused by an uninsured driver or in some states, a hit-and-run driver. Some states also have uninsured motorist coverage for damage to your vehicle.
Here's a high-level
Rideshare insurance is a new line of policies offered by insurance companies that cover riders who drive the likes of Uber and Lyft. It can be a supplemental policy or replacement to your personal policy.
Policies will differe between companies, but let's talk about two areas:
- It is often designed to provide more coverage around liability, which can be important when transporting passengers.
- It is also known to provide coverage (liability, collision, etc.) to fill the gaps that may arise in your personal coverage while you drive a rideshare, i.e. working.
As an example of a "gap".... Uber and Lyft both provide some liability coverage while you drive your customer. This is strictly designed to cover you from the time you accept a ride and make the drop off. They do not cover the times while you are waiting for a fare. I call this a gap, because your personal insurance company may not cover this as they could deem this as a time you are "working." A rideshare insurance is often known to fill this gap.
Some great details here in this article from our friends at RideshareGuys (RSG).