In today’s world, many of us depend on ride-sharing services to get us around…some of us, on a daily basis. You may have even thought to yourself, “Hey, I’m a good driver and I could use some extra cash. Why not become a driver, too?” But beware! There are all kinds of pitfalls when it comes to insurance for these services.
Sharing is caring (kind of)
When you need to get from A to B, a ride-sharing service is a popular and convenient option. You may even have more than one ride-sharing app on your phone. However, there are all sorts of insurance loopholes and gaps of coverage when it comes to these services.
Gaps and Loopholes? Like what?
Well for starters, just for having your ride-sharing app on you are probably not covered by your personal insurance. So there’s that. And if you get in an accident while providing this service, your damages or losses may not be covered. Hence, the gaps and loopholes.
But I have auto insurance…
And that’s where it gets tricky. The service may provide some coverage, but there could be gaps that you’re responsible for paying the difference for. Deductibles are high, coverage is less, and payment on a claim is probably going to be delayed. Are you picking up the trend here?
I’m a good driver, I swear!
We’re sure you are. But think about it, two very likely things can happen. Just because you are a safe driver does not mean everyone else is. Another driver could cause the accident. And what happens if they don’t have any insurance or enough of it? You will need to have your own kick in here, and that won’t happen if you don’t have the right coverage. On the other hand, it may be that you cause the accident, well, accidently. Let’s be honest, when providing these services, drivers are prone to all kinds of distractions. They’re expected to locate passengers, follow the GPS, navigate unfamiliar roads, and monitor for the next customer. We would call that a perfect storm of distractions and an accident waiting to happen!
How can I stay protected?
Step one: If you do ride-share, make sure you talk to your independent agent first to ensure you have the right coverage. Step two: Don’t leave the app on when it’s not in use. This will help lessen the time you are at risk. Just two steps. You can do it!