Are you covered for insurance when doing ride share

You excited because you are going to make some extra money driving for a rideshare app.  STOP before you continue and understand what you're getting into.  YOUR PERSONAL AUTO INSURANCE WILL NOT COVER YOU IN AN ACCIDENT!!!!!! 


Personal auto insurance is designed for people that use their vehicles for driving to and from work, shopping, games, and anything people do outside of work.  These products are priced for this purpose.  A taxi driver pays for vehicle insurance on a commercial vehicle policy because there is a greater risk and more complexity of risk.  Of course everyone would understand that the cost for a vehicle driven by a family would cost less than a person driving a taxi cab.  I wouldn't want to pay to subsidize a business risk on my personal policy. 


If you are driving for a rideshare company such as Uber or Lyft your personal insurance will deny the claim for your vehicle and for your liability.  Now that stinks but it gets worse.  Then you would have to turn your claim to your rideshare company.  Some have limited coverage so you might be ok.  But the whammy is going to come when your insurance company cancels your auto policy because you are using your personal vehicle for business purpose. 


In Arizona our Governor has signed legislation to legalize ridesharing and set up regulations for it.  There are insurance companies experimenting with an endorsement for ridesharing.  If you decide you are going to be doing rideshare make sure to check with your insurance company before doing so. 


Raymond Grim has been an insurance agent in Surprise, AZ since 2001.  Our motto is to give honest and quality service.  Give us a call for your insurance needs 623-876-1793

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