If you drive for a ridesharing company, such as Uber or Lyft, you might already be aware that a personal car insurance policy typically does not cover "business use" of your vehicle. In other words, if you're in a car accident while you're on the clock, you could end up paying out of pocket for expenses such as vehicle repairs or an injured person's medical bills.
Most ride-share companies are required by state law to provide insurance for their drivers. But, if you use your vehicle for both personal and business purposes, you might want to consider additional coverage to help protect it. Here are some things to keep in mind about ridesharing insurance — sometimes referred to as ride-hailing insurance — and the types of scenarios it may help cover.
Some insurers offer a ride-hailing insurance endorsement you can add to your existing personal car insurance policy. If you drive for a ridesharing company (sometimes called a transportation network company, or TNC), the extra coverage offered by this endorsement may help fill gaps between the TNC's commercial policy and your personal auto insurance policy.
Another option may be a full ridesharing insurance policy, which combines both personal and business coverage into one auto policy.
Insurance premiums, coverage types and policy limits may differ among insurers, and the available coverage will also vary by state. Your insurance agent can explain what options are available in your area.
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