As our busy lives seem to move full speed ahead, services like Uber and Lyft are becoming an almost necessity in some cities. But how does your auto insurance play a part in the rideshare programs? And are they even legal services to join?Do you need rideshare insurance?
Laws vary from state to state, city to city; you want to inquire with your local government or police department about your city’s specific regulations. Current rideshare drivers in your city might be another good source. Although, most rideshare websites may not reflect your area’s most recent laws and court decisions becuase many states like Florida are still debating the issue.
Some insurance companies do not allow rideshare, and can cancel your insurance based on that fact. Having drivers and riders covered properly is the most important impact which is why talking to your insurance agent about the risks and coverage needed could save your financial future. If you or anyone riding with you receives injuries while in the car, guess who is held responsible? That’s right – you are! You and your insurance company will be responsible for the lost wages, medical payments, and even pain and suffering. If you don’t have the proper coverage, your insurance company will only pay up to the limits you have chosen, and you will be financially responsible for the rest.
So what should you do if an accident does occur? First things first: Call the police department to report the accident and get a police report. Always share insurance information with the other driver. Next, you want to contact your insurance company to report the claim as soon as possible. This is where you want to make sure you have the proper coverage, and you have notified your auto insurance that you are part of the rideshare community.
It’s important for rideshare drivers to know what their insurance company will and will not cover, and whether a lower deductible / higher coverage plan, or vice versa, will be beneficial to you and your riding companions. The rideshare programs are a great benefit to communities as long as everyone involved is properly covered through the drivers insurance company. Give your agent a call and let them help you through the pros and cons of rideshare programs; it could save you a lot of money in the long run.