Ridesharing is a fairly new concept in the hail-a-cab app business. Ridesharing, as the name suggests, is sharing a cab ride with someone else who is heading in the same direction you are going to. Uber and Lyft both have these options in their apps. The thought behind this is to offer affordable rides from door to door, as well as provide carpooling in the context of cab rides.
If you are an Uber or Lyft cab driver, you may probably be aware of ridesharing insurance, but may not have given it much thought. Here is a detailed explanation of what ridesharing insurance is and what it entails.
First, why do you need ridesharing insurance?
In the event you are involved in an accident, your personal insurance will likely not cover you if you were in a ride-sharing gig. There is also the danger of your policy getting canceled if you had not disclosed that you use your car as a cab. If you are under the Uber or Lyft insurance, your cover only kicks in when your app is on and when you have accepted a ride. This leaves you exposed quite a bit.
What does rideshare insurance cover?
Rideshare insurance acts as a buffer in the periods where you are not covered by your cab company insurance or personal insurance. There is a gap period here that leaves you exposed; this is when rideshare insurance kicks in. In case an accident happens in this period, you and your personal belongings, as well as your car, are covered. There are varied offers that will give you higher coverage, and this varies from one insurance provider to the next.
Who qualifies for rideshare insurance?
As explained above, your car has its personal insurance taken out by you as an individual. The company you drive for, be it Uber or Lyft will also offer some insurance to cover you as you are carrying passengers. This insurance, however, has some gaps which then expose you to risk. Rideshare insurance is important if you offer ridesharing services because of the multiple risks involved in the event that you get involved in an accident. Rideshare is also for you if you need to be protected during your inactive periods between passengers, while still on your Uber or Lyft gig.
What are the rideshare insurance options available?
Rideshare insurance coverage bridges the gap between personal and commercial insurance. The options of rideshare insurance available are usually less expensive than the commercial insurance options that are out there. Unfortunately, not all states have this insurance, and not all insurance companies offer it. Find out which states have it and if you are covered, go ahead and take it.
You are now more aware of ridesharing insurance, and why it is so important. Safeguard your car and your business today by getting an insurance agent who will guide you on how to go about getting ridesharing insurance. Close those exposed gaps, and protect yourself.
For more information about how The Sena Group can help you with any
of your insurance needs, please contact us at 561-391-4661.
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