Are Rideshare Drivers Covered By Their Auto Insurance?



If you drive your personally owned auto for Uber, Lyft, or even a pizza delivery company, your personal auto insurance will not provide the coverage you need, should you be involved in an accident.  Uber and Lyft are “rideshare” services that compete with taxis and more traditional car transport services. These companies do not own or operate their cars and do not hire their drivers directly. Drivers are independent contractors who drive their own vehicles to pick up and drop off customers. Here are two big coverage gaps:

  • Your personal auto insurance policy excludes liability for hauling others for a fee.
  • These rideshare companies also require liability limits above the state minimums.

There are a number of insurance companies now offering specific auto insurance coverage for ridesharing risks.

Here are a few tips for rideshare drivers:

  • Purchase a separate policy with at least a $1,000,000 limit.
  • Read any, and all, agreements so you know what your responsibilities are.
  • Keep your vehicle in good working condition.

At Energy Insurance, we believe in providing value based insurance solutions that are supported with outstanding customer service.  Our agents will work closely with you to understand your exact insurance needs and work with you to solve them.  Using this approach, we are able to create a unique customized insurance plan for every one of our clients.  From affluent clientele to those just getting started, we have the capability to serve individuals and families at any point of their journey.