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April 28, 2017
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Does Your Personal Insurance Cover Ride-Sharing?

Ride-sharing has emerged as a viable way for people to earn money in their free time. It’s the practice of transporting strangers in your car for pay. This is different from carpooling.

Many companies like Lyft and Uber offer independent contractor opportunities to everyday people. However, personal insurance may not cover the drivers. If you drive for these companies with your personal insurance, you may not have the correct coverage.

Why Personal Insurance Doesn’t Cover Drivers

Essentially, transporting people for pay is a business. Your personal insurance doesn’t usually cover business operations.

Traditional auto insurance usually only protects you while you are using your vehicle for personal transportation. Many people don’t realize they may not have the right coverage when they start a ride-sharing business.

Business Auto Insurance Covers Ride-Sharing

If you are contemplating starting a ride-sharing business, you’ll likely need business auto insurance. With business auto insurance, you’ll have the coverage you need when you are driving for a ride-share. However, you can also use this coverage when you are using driving your vehicle for personal use.

The Benefits of Business Auto Insurance

There are many benefits to choosing business auto insurance. These policies come with increased limits to your coverage. You therefore have more coverage to protect you, your vehicle, and the person/persons you are transporting. If you are in an at-fault accident, you’ll likely be able to cover the financial repercussions.

Another benefit from business auto insurance is tax liability. You may be able to claim the expenses on your taxes. As a business expense, you may be able to reduce your tax bill.

Purchasing Insurance from Ride-Share Companies

To encourage drivers to drive for them, many ride-share companies offer insurance. However, be careful when taking this coverage. This insurance may not be enough to cover you and your car like your personal insurance.

In most cases, this insurance coverage is simply a means for you to comply with the law. It may not be enough for your personal car. It may be better to buy commercial insurance through your personal insurance company. Your agent can help ensure that you get the coverage you need.

Though you are driving your personal car, ride-sharing is a business. As such, you need to have business insurance to protect you and your vehicle while you are working and when you are not.

ACF Insurance Services Inc can help you get an Raleigh ride sharing insurance policy that covers your needs. Give us a call at (919) 878-7786 for more information.

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