If you driver for a ridesharing company, like Uber or Lyft, you are supposed to drive professionally and in a way that keeps your passengers (not to mention yourself) safe. However, there is no guarantee that an accident won’t occur, and if it does, a lot of different people might get hurt. Sometimes, you won’t bear the responsibility of paying for the accident if it wasn’t your fault. If you did cause the accident, however, then you might have to pay for the harm they caused others. Because you were driving for business, then your standard car insurance coverage might not automatically apply. Here’s what you need to do to ensure it does, nonetheless.
Driving for ride-sharing companies makes your personal car a commercial vehicle. Therefore, you’ll need to have the right car insurance to apply to it. Consider how to get covered.
What Happens If the Accident Isn’t My Fault?
Suppose that while driving to pick up a customer for a ride to the airport, you are passing through a green light. However, another intoxicated driver speeds through the red light at the opposite intersection, clips your vehicle and causes you to careen into the grass.
In this case, the accident almost certainly not your fault, since you were hit by a drunk driver who ran a red light. Therefore, in Texas, which is an at-fault state, the driver who caused the accident usually must take responsibility for the harm and property damage they do to others.
As a result, you might be able to file against that other driver’s liability insurance for compensation. The policy might pay for your medical costs, and the costs necessary to replace your vehicle or help you get a new one. Additionally, if you have a paying passenger in the car when the wreck occurs, the other driver’s policy might also compensate them.
What if I have to pay for damage?
There is no promise that the driver who caused the wreck will have adequate liability insurance to cover your losses. Or, if the accident was your fault, then you might have to use your policy to pay not only for your own damage, but also for the damage of others. Therefore, you might need your own coverage for the claim.
However, if the wreck occurs while you are driving for your ridesharing job, then your standard policy likely won’t cover you at all. Driving for business means you are operating a vehicle commercially, even if it’s your personal car. As a result, your personal policy likely won’t apply, and you will need enhanced coverage that would normally come from commercial auto insurance.
Because your rideshare job is a bit different than driving a vehicle owned by a business, you’ll need to adjust your car insurance to include the best of both commercial and personal car insurance. It’s not enough to rely on the insurance provided by your rideshare company. These policies often don’t provide the most-comprehensive protection individual drivers need.
The good news is, you can get a solution called ridesharing insurance. Rideshare policies are available in most states, and they expand your coverage to insure times when your personal policy won’t cover you. Therefore, when you aren’t driving for rideshares, your personal policy limits will apply. Once you start accepting rides, then your rideshare insurance policy will apply.
If you find that you cannot buy a ridesharing insurance policy, talk to your insurer about whether you can buy commercial auto insurance, which is standard coverage for commercial drivers. This might work as a suitable alternative to a rideshare insurance policy.
All in all, when you take a ridesharing job, talk to your insurer. They can help you decide the correct way to turn to insure your vehicle to the highest degree.
Remco Insurance (800) 282-2000
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