Ride Share Insurance

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Last updated on: January 23, 2023

Looking to buy a new ride share insurance policy? First, you need to be sure you are getting the right coverage. This article covers some of the questions you need to ask yourself to get the best commercial auto insurance coverage for your needs.

What is Ride Share Insurance?

First, what is ride share insurance, and why is it important? This type of commercial auto insurance is important for ride share drivers who transport passengers. Unlike standard commercial auto insurance, it will cover the cost of damages to another driver’s vehicle, as well as any personal liability resulting from an accident.

This type of commercial auto insurance is also useful for on-demand delivery services.

Depending on your state, you may need to get a commercial auto insurance policy for ride sharing. The type of commercial insurance you need will depend on the vehicle you drive, your driving record, and your state.

If you are a part time or occasional driver, you can still get ride share insurance from your personal auto insurance. Just make sure you inform your insurer of your work status before you start. Some commercial auto insurance companies will listen to your requests and provide you with a quote.

It is important to remember that ride share insurance does not cover offline driving. This is not covered by most personal car insurance policies. Several commercial auto insurance companies have started offering products to fill this gap in coverage.

Insurers can also recommend other companies that offer ride share insurance. These companies may be able to point you to insurers that have better rates.

There are two main types of ride share insurance:

  • Standalone policy
  • Add-on

While there are several ride share insurance options available, you will likely need to buy coverage from the same company you have your personal auto insurance with.

Why Uber and Lyft Drivers Need Ride Share Insurance

Ride share insurance companies offer some level of insurance, but they are not as comprehensive as a regular policy.For instance, they may not cover damage to another driver’s vehicle.

The Top Ride Share Insurance Companies

  • Progressive
  • Geico
  • Allstate

Progressive is a major auto insurance provider that participates in the ride share market. Its ride share endorsement is available in thirty-four states. It can be pricey, however, depending on your driver profile.

Geico offers a hybrid ride share insurance policy, which replaces your personal car policy and covers liability and property damage. It is only a few dollars more per month than a standard policy.

Allstate offers comprehensive coverage for app-based delivery services. It includes deductible gap coverage, which allows you to cover the difference between your personal deductible and the policy’s maximum. This coverage also stays in effect for the entire trip.

How Much is Ride Share Insurance?

Ride share insurance prices vary from provider to provider and can range from $10 per month to more than double the cost of a traditional personal car insurance policy. It all depends on the driver’s history, the type of vehicle they drive, the type of commercial auto insurance coverage they are looking for, and the state where they live.

Liability Coverage

If you do not have the right coverage, you could end up with large payouts on your medical bills and liability payments. A good commercial auto insurance policy will protect you financially, as well as your vehicle.

Many insurers offer ride share insurance, but it may not be available in your state. Some insurers even provide ride share endorsements, which are added to your existing commercial auto insurance. While these coverages are less expensive than commercial auto insurance policies, they will not cover you in every state.

In many states, ride share companies only provide limited liability coverage. Their standard commercial auto insurance policy is designed to cover fleets of vehicles. A ride share driver’s personal car insurance isn’t set up for ride share liability, so they won’t be covered in the event of an accident.

Commercial Insurance Tips

From occasional Uber driving to full-time, ride share insurance is a good idea. You will also want to know a few commercial insurance tips:

The insurance industry trade group, the Insurance Information Institute (I.I.I.), says that the best way to get a decent rate is to compare quotes from several companies. You will want to consider:

  • The type of insurance
  • How often you drive
  • Your personal driving history

Among many commercial insurance tips, a commercial auto insurance plan may be able to cover drivers when they are at work. Rideshare drivers are constantly on the road, so it is important to have the right ride share insurance to protect your vehicle.

A commercial auto insurance policy will cover your ridesharing activities. The commercial auto insurance industry has become highly competitive, and you will want to ensure that you are getting the best coverage at the lowest cost. The best commercial auto insurance for rideshare drivers is likely to be a combination of a commercial auto insurance policy and a personal auto policy.

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