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buying Why rideshare insurance is a must

06:41  10 april  2018
06:41  10 april  2018 Source:   nerdwallet.com

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Rideshare insurance is a cheap alternative to commercial auto insurance for drivers for Lyft, Uber and others. Uber and Lyft drivers might seem well- insured , between the rideshare companies’ coverage and their own policies. However, a crucial gap leaves drivers at risk if they have an accident

Ride -sourcing or “ ridesharing ” as it’s commonly known is the process of transporting customers for a fee through the use of a privately-owned vehicle. It has recently become popular among drivers who are looking to gain a little extra income outside of their normal 9-5 jobs. Unfortunately, this also brings a

1-Minute Read: Why Rideshare Insurance is a Must: While a rideshare driver is waiting for a ride request, insurance coverage is slim.© Getty Images While a rideshare driver is waiting for a ride request, insurance coverage is slim.

Uber and Lyft drivers might seem well-insured, between the rideshare companies’ coverage and their own policies. However, a crucial gap leaves drivers at risk if they have an accident at the wrong time.

The gap

Once a driver accepts a fare or has passengers in the car, each company’s insurance policy is pretty generous. But while a driver is waiting for a ride request, coverage is slim. It includes only basic liability coverages, which pay other people if you’re at fault in a crash.

If you cause an accident before accepting a request, you’ll be on the hook for your medical bills and any damage to your car. You’ll also have to pay for injuries and property damage beyond these liability limits:

The great myth about car insurance costs

  The great myth about car insurance costs Consumer watchdogs say insurance companies are doing you no favors if you're one of these lower-risk driversThat's the counterintuitive, but probably accurate, picture drawn by two surveys of auto insurance rates -- one by the Consumer Federation of America (CFA), the other by Internet auto insurance search engine The Zebra.

This is why rideshare insurance is so important. It can fill these coverage gaps and provide more insurance protection throughout the time you're How does ridesharing insurance work? If you have your own personal vehicle, you must meet the minimum liability requirements for car insurance in

Do you need rideshare insurance ? No. Should you have it? Yes. Learn about why rideshare insurance is essential to protecting your earnings. - Okay. One of

  • $50,000 bodily injury per person
  • $100,000 bodily injury per accident
  • $25,000 in property damage per accident

The risk

You can rely on your personal auto policy during that time, right? Not so fast.

When you use your car for “livery” — carrying passengers or goods for a fare — it’s not covered by a traditional policy.

So if you file a claim with your insurer for an accident that occurs while you’re waiting for a new fare, it will probably get denied. (Uber and Lyft expect drivers to file claims for these accidents with their personal insurers first.)

What’s more, your insurer could cancel or refuse to renew your policy if it finds out about undisclosed driving for rideshare companies, no matter when an accident happens.

The solution

Many insurers now offer rideshare insurance policies, which extend your personal policy to cover ridesharing and guarantee you won’t lose coverage because of your job.

Does Car Insurance Cover Theft?

  Does Car Insurance Cover Theft? What Happens When Your Car Is Broken Into? So you walk out to your car in the morning, and your car is still there, but the window is broken. Maybe you own a vehicle with a manual transmissions and the thieves couldn’t drive stick, so they went after your belongings, instead. Once again, things get tricky. It depends what those things were, where they were located in the car, and how they were used by the owner.If you had valuables in the car, such as cell phones, CDs, a purse, etc., these items are covered under homeowners’ insurance.

Rideshare insurance is a specific type of auto insurance geared toward drivers who work full-time or part-time for one of the app-oriented livery companies, like Uber or Lyft. Typically rideshare policies are offered in one of two ways: either as an add-on to an existing personal car insurance policy or as a

How Insurance Companies Understand Ridesharing . In the world of ridesharing and insurance , a driver’s time is divided into three phases, or This result is a disaster for everyone involved. The parties injured by the driver must resort to suing the driver personally, and it’s a safe bet that most

Sound like too much insurance? It’s not a separate policy — just an add-on some companies offer — often for under $20 per month. There is an option in most states.

Consumer Group Blasts Auto Insurers for Paltry Low-Mileage Discounts

  Consumer Group Blasts Auto Insurers for Paltry Low-Mileage Discounts You might think your car insurance company will give you a price break for driving less. But not all insurers offer discounts to low-mileage drivers. On average, folks outside of California save $30 per year, or 1.6 percent, for every 5,000 fewer miles driven. That’s compared with an average savings of $81, or 8.7 percent, in California — which is an exception because its regulations require insurers to charge lower-mileage drivers less.Analyzing mileage discountsFor its research, CFA got premium quotes for basic liability coverage in 12 different U.S. cities — one in California, and the rest elsewhere.

Other Rideshare Insurance FAQs. Need and Eligibility. Why would I need ridesharing insurance ? GEICO Rideshare Insurance is a hybrid policy, which means that it includes ridesharing and personal use. It can cover you whether you have the Uber or Lyft app on or off.

Ridesharing continues to be a hot trend in transportation with millions of rides being provided daily and drivers using privately owned cars to offer Uber, Lyft or similar services. That’s why ERIE offers auto insurance with ridesharing coverage that ensures drivers have coverage during every part of the trip.

Lacie Glover is a writer at NerdWallet. Email: lacie@nerdwallet.com.

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