Gone are the days of an average single salary income sustaining an entire household. These single incomes used to serve not only to survive - but to save, invest, and thrive. But in recent years, many in need of supplemental income have turned to using their personal vehicle to drive for Rideshare services.
Today there are over 2 million drivers on the road who are in the business of delivering food for apps such as Doordash and Caviar, or they are in the business of delivering people for Uber or Lyft. However, whether you’re delivering food or delivering people, earning that extra sweet, sweet gig money can affect your car insurance coverage in more ways than you think.
Adding a Rideshare endorsement to your auto policy will increase the price of your policy. So Shop Around
Your insurer can cancel, or non-renew your auto policy, if you fail to notify them that you are driving for a rideshare or delivery service (and don’t bother trying to gig on the sly, when rideshare companies hire you, they scan your License and Vehicle VIN, and your insurer will eventually find out).
Some states are not Rideshare Insurance-friendly when it comes to adding coverage to your Personal Auto, and you may be forced to buy Commercial Auto coverage, which is more expensive. (See Graphics Below)
If you are not adequately covered, there may be gaps in your coverage when it comes to the physical damage of your car.
The window of time between your app being open, and you accepting a ride is the most dangerous, because once the rideshare app is on, but you do not have a fare request, Lyft and Uber’s commercial coverage drops to liability-only. What happens if you get into an accident with the app on and no fare? It falls onto your Personal Auto Policy to pick up the slack.