If you drive for Uber or Lyft, you may not have car insurance coverage on your vehicle at all.
Car insurance companies that write personal insurance policies do not like it when the cars that they are covering are used for business purposes. They especially don’t like it when you are using your vehicle to transport people for money, like if you drive for Uber or Lyft. In fact, they dislike this so much that there is a clause in your car insurance contract that states that you will not have coverage if you are transporting people for money. This clause is why Uber and Lyft drivers sometimes have no insurance coverage when they are driving.
Confused? Here is how it works……
Before a driver turns on the app that they are available for passengers their personal car insurance policy covers their vehicle. After they pick up a passenger their coverage through Uber or Lyft then covers them. However, from the time they turn on the app to the time they actually pick up a passenger, there is no car insurance coverage on their vehicle. There is a gap in the coverage.
Insurance companies know about this and some are now introducing coverage that will cover your vehicle under your personal car insurance all the way up to the time that you actually pick up a passenger. This is a special endorsement that has to be added to your policy and not all insurance companies are offering it. To find out if your company is offering this new coverage, contact your car insurance agent.