While driving for one of these companies can be a great way to make money, you need to make sure your insurance coverage will apply. The short answer is that if you have a personal automobile policy, it will not provide coverage for either Liability or Physical Damage. That’s because you are using your car for a “livery” service for money. It is no longer simply a personal use vehicle during those times.
So, if you have an accident or some other incident it is likely that your personal automobile policy will not respond.
While both Uber and Lyft offer insurance policies, they may only apply when the “fare” is actually in your car. On the way to and from that particular job, they may not cover you. It’s also possible that your personal policy will not cover you since you are in the process of using it for business and livery, which is excluded in your policy.
Even if you purchase coverage from the company that you are affiliated with, it may have limitations that are unacceptable. These companies are still evolving the insurance coverage that they offer, but you need to very carefully examine them to make sure you are comfortable with what is being offered.
Take a very close look at the coverage being offered. If it is confusing, as most insurance coverage is, ask us to help you understand what is offered.
In short, go into one of these arrangements very deliberately. The money is great but so are the risks.
If you have questions, call Burns & Cotter, Inc. and ask us to help.
Phone: (401) 421-0100 Fax: (401) 421-2376