Ridesharing companies are becoming more and more popular across the country and can be a great way to earn a couple extra dollars. However, before you sign up to be a driver for one of these companies, it is important to take the time to consider what it will mean for your auto insurance coverage.
Standard personal auto insurance companies have strict exclusions if you use your vehicle for business purposes, which includes a ridesharing company. If you make a claim to your car insurance company after an accident while using your car for business, your claim will most likely be denied, leaving you to pay for the damages out of your own pocket.
While most ridesharing companies provide insurance coverage for their drivers, the policies have limitations. In most cases, the policies that are provided by the ridesharing company will only provide coverage when a passenger is in the vehicle. This will leave a gap in your coverage when you are waiting to pick up a passenger since your personal car insurance policy will not be providing any coverage.
The best way to make sure that you are properly protected on the road when working for a ridesharing company is to invest in a commercial auto insurance policy. Commercial auto insurance policies are meant to provide coverage when you are using your vehicle for business purposes, such as picking up passengers for a fare. The coverage provided by your own commercial insurance policy paired with the coverage from the ridesharing company will work together to keep you safe.
Contact the insurance professionals at Bell Black Insurance in Rexburg, Idaho for all of your auto insurance needs when working for a ridesharing company. We will work with you to make sure that you have the protection that you deserve.