1-minute read: Insurance for ride-booking drivers is a must - InfoNews

Current Conditions

Mostly Cloudy
18.8°C

1-minute read: Insurance for ride-booking drivers is a must

FILE- In this Jan. 31, 2018, file photo, a Lyft logo is installed on a Lyft driver's car next to an Uber sticker in Pittsburgh. Uber and Lyft drivers might seem well-insured, between the ride-booking companies’ coverage and their own policies. However, a crucial gap leaves drivers at risk if they have an accident at the wrong time. (AP Photo/Gene J. Puskar, File)
April 05, 2018 - 7:05 AM

Uber and Lyft drivers might seem well-insured, between the ride-booking 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:

— $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 ride-booking companies, no matter when an accident happens.

THE SOLUTION

Many insurers now offer what they call ride-share auto policies , which extend your personal policy to cover ride-booking and guarantee you won't lose coverage because of your job.

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.

This article was provided to The Associated Press by the personal finance website NerdWallet. Lacie Glover is a writer at NerdWallet. Email: lacie@nerdwallet.com. Twitter: @laciewrites.

RELATED LINK:

NerdWallet: Rideshare insurance for drivers: where to buy, what it covers

https://nerd.me/rideshare-insurance-for-drivers

News from © The Associated Press, 2018
The Associated Press

  • Popular kamloops News
  • Comments
  • Woman found dead in car in Kamloops
    KAMLOOPS - A woman has been found dead and two men have been taken to hospital after they were found in a car playing loud music early this morning. Kamloops RCMP spokesperson Cpl. Jodi Shel
  • Kamloops RCMP seek missing man
    KAMLOOPS - Police in Kamloops are asking for the public's help to find a missing man. James Harris, 53, has not been in contact with family or friends since late March and he was last se
  • Searching for a stranger: Dozens of people brought in by bus to look for Ryan Shtuka
    SUN PEAKS - It's been nearly 10 weeks since Ryan Shtuka went missing in the Sun Peaks area after leaving a house party on Burfield Drive, but volunteers are still showing up in droves hoping t
  • Broncos families surprised obituaries are on website selling services
    Some families of Humboldt Broncos bus crash victims are surprised to learn that error-riddled obituaries of their loved ones have been posted on a website that's selling flowers, as well as on
  • 18-year-old hitchhiker from Vernon missing
    VERNON – An 18-year-old Vernon woman has been missing for a week. Vernon RCMP say Aislynn Hanson was last seen, April 13, and despite following up on several leads, remains missing.
View Site in: Desktop | Mobile