Post Views: 0
If you are a car owner or a driver working with rideshare companies such as Uber, you need rideshare insurance as a protective cover from car accidents. It will save you from the financial burden of car repair or medical bills in case of an accident.
You need car insurance for Uber even if you have personal insurance or some coverage offered by driving platforms. It is an excellent option to fill the space between the coverage provided by rideshare platforms and the driver’s or car owner’s car insurance.
If you are looking for affordable insurance quotes in Alberta, contact an online insurance brokerage with a proven track-record, like Surex.
Benefits of car insurance for Uber drivers
Generally, insurance companies don’t allow their clients to use their auto insurance coverage for commercial purposes. Hence, if you are driving the car to earn money and are associated with a rideshare firm, it is important to sign up for rideshare insurance.
Personal auto insurance is unlikely to cover the damages due to accidents during ridesharing gigs. The coverage provided by the ridesharing companies provides coverage for the ride. It doesn’t provide cover for the period in between rides. An add-on rideshare insurance for Uber drivers to your existing car insurance will fill the gaps in your existing policy.
How does rideshare insurance work?
Rideshare companies give basic car protection insurance to the drivers for the period they are working on a gig. They offer liability, collision, uninsured motorist, and comprehensive insurance coverage when the passenger is either in your car or when you pick up a customer for the ride. In other words, you can reap the benefits of liability coverage only when you accept a ride request.
Types of rideshare insurance
Listed below are the different options for rideshare insurance coverage that you can add to your existing policy –
- Personal insurance extension cover: It is ideal for extending the auto coverage limit of your existing insurance policy.
- Additional protection cover: This insurance covers the insurance gaps of the coverage provided by the rideshare company.
- Hybrid policy: This insurance policy is designed to insure the individual driving the car for personal reasons or a rideshare company during a given period.
Buying the right rideshare insurance
Rideshare insurance is an alternative to the coverage provided by ridesharing companies. You may also use it as an alternative to your car insurance. Technically, car owners or drivers aren’t allowed to buy car insurance for Uber as a stand-alone cover. Also, you need to be careful when purchasing rideshare insurance.
Keep the following points in mind when looking for your options:
- Provide details about your ride-sharing company work to your car insurer.
- Determine the gaps between the policies of your rideshare company and your policy insurance coverage.
- Confirm with your insurance company whether the rideshare insurance offered can fill coverage gaps in your current insurance. Or you need to sign up for a completely new commercial policy. Get quotes for both options and compare the prices.
Technical terms related to rideshare insurance coverage
There are some technical terms related to rideshare insurance for Uber drivers. You can easily find a better deal by learning about these terms in detail.
Third-party liability coverage
It pays for property damage and injuries caused in a car accident to a third party or their property. A third party is someone other than the car’s driver who caused the accident. If a rideshare driver hits another car, the claim for auto liability insurance will go to the driver of the other vehicle.
Uninsured motorist injury coverage
Uninsured motorist cover is ideally designed to help the policyholder to bear the cost of medical bills for the injuries a rideshare driver and their fellow drivers get during a ridesharing trip in a car accident. Unlike third-party liability coverage here, the other vehicle driver is at fault. Uninsured motorist injury coverage applies in hit-and-run accident cases. And the coverage limits vary from state to state.
Comprehensive and contingent collision and coverage
If you have auto insurance collision and comprehensive coverage, your rideshare company may provide additional, comprehensive, and collision coverage while you are working on a ridesharing gig.
What happens if an accident happens while a passenger is onboard?
Suppose the car owner or driver causes an accident while on the way to pick up a passenger or make a delivery. In that case, the ridesharing company will provide an insurance policy to help cover medical bills and expenses for other damages to a specified limit ( it varies according to the state and insurance company).
Suppose you are hit by an uninsured driver while working on your ridesharing gig. In that case, the amount covered in car insurance for Uber drivers given by the ridesharing company may depend on whether or not you have underinsured or uninsured motorist insurance coverage.
Note – Generally, delivery companies don’t offer insurance coverage in these conditions.
When to file a ridesharing insurance claim?
The claim can be filed if the policyholder causes an accident while delivering their duties on the ridesharing app, when the application is on, or when waiting for a ridesharing request. It is important to provide details to the ridesharing company.
The insurer provides liability coverage for the damages and injuries caused to self, own vehicle, to a third party, or their property. Note that the damages are covered if the personal policy is included in the collision and comprehensive coverage.
Uber car insurance coverage is all about ridesharing endorsement. It fills the gap of comprehensive and collision coverage gaps. Plus, it saves the policyholder from the financial crunch you could face (as an Uber driver or vehicle owner) as a consequence of the damages that occur to the vehicle or you suffer from an accident.
Another crucial aspect of ridesharing coverage is that it eliminates the possibility of being dropped by the insurance company (as an Uber driver) due to an unfortunate incident. It is to be noted that only some ridesharing companies or states facilitate their drivers with ridesharing coverage. You and your vehicle will be protected with a rideshare endorsement.