Understanding The Coverage Necessary For Uber & Lyft Drivers
For many, the rising popularity of rideshare applications like Uber & Lyft has been life changing. These companies allow you to call a driver to your location using an app on your smartphone, and the driver can be anyone who has passed the company’s background check and whose car meets their requirements. Drivers use their personal cars and make their own hours, signaling they are available for a pickup by turning on the application. Rates are more affordable for the riders, and drivers get to control their hours and, consequently, the income they pull in.
There is a downside with these companies, however, in that the issue of auto insurance has not been fully clarified. If a rideshare driver gets into a car accident while “on the clock,” does his or her auto insurance cover it? Does the company’s? Or do the drivers need to secure commercial auto insurance coverage? What if their insurance provider refuses to cover the accident because they were using their vehicle for commercial purposes, leaving the driver uninsured?
Unfortunately, state and federal governments have not determined the exact regulations with rideshare companies. While many feel they ought to be regulated as taxi companies, Uber and Lyft insist they are actually technology companies and must have a unique set of guidelines. Each company is working to create protection for their drivers, so contact the company itself as well as your insurance agent to ensure you have coverage at all times if you are a rideshare driver.
If you are looking for an insurance agent to help you understand if your coverage will protect you while driving for a rideshare company, contact ISU Wissink Insurance in Culver City for all of your California auto insurance needs. Our dedicated agents will take the time to ensure you fully understand your policy and have the coverage you need. Call us today!