Having the Wrong Auto Insurance Can Cost You a Bundle
These days, having a side hustle is pretty common. Whether you’re taking on an extra gig on the weekends to make ends meet or you’re earning some money to support your hobby or social life, then you’re probably familiar with ridesharing.
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In the last few years, ridesharing has become an increasingly popular way for some people to get from Point A to Point B and other people to make a few extra bucks making that happen. These services operate through a mobile app. Through the app, passengers can request a ride by providing their location and their destination. Once a driver confirms that they’ll provide transportation, the app displays information about the driver and their vehicle, the driver’s location and their estimated arrival time.
While this type of service is far from perfect, overall, it’s a great option for people who don’t own a vehicle or occasionally need a ride and don’t want to pester nearby friends and family, and it’s a great way for someone to make some money without the demands and rigidity of a regular job.
Do You Have Enough Auto Insurance Coverage?
If you drive for a ridesharing service like Lyft or Uber, then you may believe that since you’re not technically an employee, then your regular auto insurance will cover you in the event of an accident. However, as far as your insurer is concerned, you’re using your vehicle for commercial use, and you’re at a greater risk of being involved in a collision than the average driver whose vehicle is driven strictly for personal use. For that reason, the auto insurance policy that covers someone who only drives their car for personal use isn’t enough for you. In fact, if you’re in a collision and you have a Lyft or Uber sticker on your vehicle, one of the first things your insurance company will do is determine whether you were working as a driver at the time of the collision. If you were, then your claim may be denied altogether.
While transportation network companies offer auto insurance, this coverage is probably not going to provide adequate coverage if you’re involved in an accident, especially if you suffer a bodily injury. In fact, you could end up paying for a significant portion of the damages out of your own pocket.
Adding Rideshare Auto Insurance Coverage to Your Policy
If you’re thinking about becoming a driver for a TNC like Lyft or Uber, the first thing you need to do is contact an auto insurance agent and talk about adding rideshare coverage to your auto insurance policy. This add-on extends your existing auto insurance coverage to cover the time that you spend driving for a TNC. Specifically, from the time you make yourself available to pick a rider up, and the rider getting into your car, is when your rideshare company may not cover you as a driver. From the moment you are “available” to the time a passenger is in your car, and after you drop off your passenger, until the time you pick up another passenger, is specifically what rideshare covers. “Trolling time.” But it is important you ask your insurance agent the specifics of the policy you are purchasing.
The Cost of Adding Rideshare Coverage
The cost of adding rideshare coverage varies widely from one driver to another, but in most cases, this coverage is affordable. To find out how much it will cost you, speak with a Nevada Insurance Enrollment auto insurance agent today.
Read More: Auto Insurance in Las Vegas, Nevada
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DISCLAIMER: It is important to note that the information contained herein is made general for the purpose of explanation. You should consult your policy for exclusions or other language that may alter your policy.