The gig economy in and around Pomona, CA has given rise to rideshare services like Uber and Lyft, allowing individuals to earn income by providing transportation services. If you’re considering becoming a rideshare driver, it’s crucial to understand the implications for your auto insurance.
Personal Auto Insurance vs. Rideshare Insurance
Most personal auto insurance policies do not provide coverage while you are driving for a rideshare service. This is because traditional auto insurance is designed for personal use, and engaging in commercial activities like ridesharing can lead to coverage gaps.
The Rideshare Insurance Gap
The rideshare insurance gap is a critical concern for drivers. It refers to when you actively use your vehicle for rideshare purposes but have not picked up a passenger or completed a ride. During this time, your auto insurance may not cover accidents or damage, potentially leaving you financially vulnerable.
Understanding Rideshare Company Insurance
Rideshare companies typically offer insurance coverage that varies depending on your status during the rideshare process:
- Offline or Personal Mode: When your rideshare app is turned off, your auto insurance provides coverage.
- Online, Awaiting a Ride Request: The rideshare company’s insurance often provides limited coverage for liability and collision.
- En Route to Pick Up a Passenger or During a Ride: At this stage, the rideshare company’s insurance generally offers more coverage.
Additional Coverage Options
Drivers have a few options for additional coverage:
- Rideshare Endorsements: Some insurance companies offer rideshare endorsements that can be added to your policy.
- Commercial Auto Insurance: Consider commercial auto insurance if you plan to drive for rideshare services frequently.
THINK Insurance & Financial Services Can Help You
At THINK Insurance & Financial Services, we can answer all your questions concerning auto insurance. We assist the Pomona, CA area. Contact us today.