Using your personal vehicle to drive for rideshare services like Uber or Lyft is a good way to earn some extra cash. However, in order to protect yourself while driving for work, you need to know a few things about Auto Insurance. At the times when you transport passengers in your vehicle, your car no longer remains covered by your personal insurance. To protect yourself, your vehicle, and your passengers, you need to purchase specialized coverage called Rideshare Insurance.
When it comes to rideshare and insurance coverage, without specialized insurance you end up having a “coverage gap”. When you drive your vehicle for personal use, with your ridesharing app off, you are covered by your personal Auto Insurance policy. When your app is on and your passengers are matched, while you drive to pick them up and later drive them to their destination, you are protected by the policy from your Transportation Network Company (TNC). However, during the time in between, when you have your app on, available to drive, you are not protected by either of those policies. That is where the “coverage gap” comes from.
Rideshare Insurance serves to eliminate the coverage gap, providing coverage in this open period. The cost of insurance premiums will depend on your driving record, mileage, amount of coverage, insurance company, location, and other factors determined by your provider. The average costs of rideshare coverage range between $6-20 per month, and usually you can add this coverage to your existing policy. The price of Rideshare Insurance is low while it provides the necessary coverage for you to have a piece of mind knowing that you are protected at all times.