Everyday we see new concepts and one of the latest is ride services similar to cabs or taxi’s that people can use with a simple app from their phone. The more popular ones like Uber and Lyft are in bigger cities already and moving to our area such as Green Bay and Milwaukee. You may have already seen ads on your Face book urging you join and make extra money just by picking up people looking for a ride using your own vehicle. These business models have grown very quickly and most people that participate may not know or even think about how it affects your insurance. If you have car insurance you most likely think you’re covered, the answer is not that simple.
If you're thinking about becoming a driver for a ride service like Uber, let’s look at a few things before you sign up so that you know how it may affect your insurance coverage before you decide to join.
Let’s look at the 3 scenarios companies are breaking down coverage for. Most companies have already made these changes to their policies:
1-If you are using your car for your own personal needs. (Not transporting anyone or have your service turned on)
2- You have your service turned on or you’ve accepted a fare from someone, and you are on your way to pick them up.
3-You are driving with a passenger in your vehicle that has paid a fare.
Under these areas you are most likely ok under the first scenario, however most companies will not cover you or your car under the second or third scenario. It’s never good to go without coverage and even worse to find out after the fact the insurance you paid for will not cover your damage or a passenger if also injured.
So be safe and contact your agent before you decide to Uber! Sometimes it takes insurance companies time to catch up to new ideas before they may give us some options to cover risks like this by adding a special endorsement to your personal car insurance. In the meantime we do have companies that can give you coverage for this if you decide to give it a try.
If you have questions call us at 920-898-5731, we can help. Better to be safe than sorry.