5 things drivers need to know before working for a ridesharing service

If you're planning to drive for a ridesharing service like Uber or Lyft, it's crucial to understand how insurance works in this context. Here are five key things drivers need to know about insurance before getting started:

1. Understand Ridesharing Insurance Coverage - Personal auto insurance policies typically do not cover accidents that occur while driving for a ridesharing service. Ridesharing companies provide their own insurance coverage while you’re on the job, but this coverage is often divided into different periods (e.g., when the app is on but no ride is accepted vs. when a ride is in progress). Check the specifics of what is and isn’t covered during each phase.
2. Know the Coverage Phases - This is when the ridesharing app is on, but you haven’t accepted a ride yet. During this period, the ridesharing company’s coverage may be minimal or nonexistent, and your personal insurance policy might not cover you. It's important to check whether your personal policy provides any coverage during this time or if you need additional ridesharing insurance.
3. Review Your Personal Auto Insurance Policy - Notify your personal auto insurance provider if you’re driving for a ridesharing service. Some insurers may offer a ridesharing endorsement to extend coverage, while others may not cover you at all during ridesharing activities.
4. Understand Liability Coverage - Check the liability limits provided by the ridesharing company and ensure they are adequate for your needs. Be aware that if you’re found at fault in an accident, you might still be liable for damages or injuries that exceed the coverage limits of both your personal and ridesharing insurance policies.
5. Be Prepared for Insurance Documentation - Ridesharing companies often require drivers to provide proof of insurance. Ensure you have all necessary documentation, including any endorsements or additional coverage you’ve purchased.

If you have other questions about ride share insurance, contact OHL Insurance and Financial Services.