Driversharing and Auto Insurance – What You Need to Know

Written by on 9/14/2015 10:00 AM . It has 4 Comments.

The idea of driving around in your car in your free time and picking up extra cash sounds pretty good. Thanks to companies like Uber and Lyft, you may even be able to turn it into a full-time job. You choose your hours, your location, and the rides. Sounds pretty great, doesn’t it?

Driving for a company like Uber or Lyft may sound like a great (and easy) way to earn money, but what happens if you get into an accident?

What are Uber and Lyft?

Companies like Uber and Lyft are officially known as transportation network companies (TNCs). The customer connects to the company and you as a driver through their mobile app. You give them a ride. Both you and the TNC get paid. You’re acting as livery – a driver with a passenger for a fee.

Customers and drivers are responding to the service. Riders like the ease of use – find the closest ride, pay from your phone, and get to where you’re going – plus the ability to choose and rate drivers. With an average of 20,000 new sign-ups a month, drivers love flexibility and the promise of relatively easy money.

Although it sounds great, no system or service is perfect.

What About Auto Insurance?

If you think your personal auto insurance will protect you while you’re working for a TNC like Uber, think again. Your auto insurance policy probably doesn’t even apply to the type of driving you’re doing. Worse, if caught driving for pay, you could even lose your coverage.

Most auto insurance policies exclude coverage for business activities – like driving people around town for money – in your personal vehicle. Your insurer may recommend you purchase commercial auto insurance, or in some states, provide you with the option of ridesharing insurance. This is still relatively new, and 90 percent of drivers don’t have the right coverage.

TNC Auto Liability Coverage Isn’t Perfect, Either

TNCs may offer a form of auto liability coverage while you work as one of their drivers, but coverage can change without notice and won’t cover everything. Typically, the policy only covers physical damage to your vehicle. Thanks to recent litigation against Uber, they have updated some of their coverage practices:

  • There are three periods in which Uber’s coverage applies.
    • Period 1 – The app is on, but you haven’t received any requests.
    • Period 2 – You’ve accepted a ride and you’re heading to your passenger.
    • Period 3 – The passenger is in your vehicle for the trip.
  • Once the passenger leaves, the coverage goes back to period one, assuming that you leave the app on.
  • There is no collision coverage during period one.
  • You may owe a deductible if you’re involved in an accident.

What Happens if You Get Into An Auto Accident?

Assuming you’re in the 90 percent of drivers without ridesharing insurance, several things happen once you get into an accident – and none of them are good.

  1. Your auto insurance will probably deny the claim. They could cancel your policy for one of two reasons:
    • Failure to disclose – most major insurers actually ask if you work for a TNC these days. Failure to tell the company never ends well.
    • Usage – working for Uber or Lyft drastically changes the average usage of your vehicle and exposes you to increased risk. If you didn’t update that information, you’re not using your vehicle for it’s “typical” use.
  2. You could be held financially responsible for any expenses above and beyond the limits of the company’s insurance policy. This could happen even if the company’s insurance liability picks up some of the costs. This happens most often when serious injury or even death occur.
  3. As an independent contractor, you’re not covered under workers compensation coverage for the company. Any injuries you sustain will be at your own expense or using your own insurance.

Before you decide to work for any TNC, even Uber or Lyft, talk to your insurance agent. Find out if ridesharing insurance is an option for you. Decide if you have the resources and coverage to handle potential accidents. It sounds pretty easy to jump in the car, open an app, and start driving, but you need to consider if the potential costs are worth the money you earn and your time.

Want to know more? Contact us at Charlotte Insurance and we’ll be happy to go over your auto insurance options with you.

Image courtesy of Flickr user Alper Çuğun.

Comments

Got something to say? Join the discussion »
  1. changhon62's avatar changhon62
    http://www.adidasnmdrunnerr1.us.com/ yeezy 750
    http://www.yeezyboost350shoes.us.com/ yeezy shoes
    http://www.longchampbag.us.com/ longchamp backpack
    http://www.adidasyeezy-350.us.com/ yeezy 750
    http://www.nikeairvapormaxflyknit.us.com/ vapormax
    http://www.nikeairmax-90.us.com/ air max thea
    http://www.hermesbirkin-handbags.us.com/ hermes handbags
    http://www.pandorajewelryscharms.us.com/ pandora jewelry official site
    http://www.salomonspeedcross3.us.com/ salomon shoes
    http://www.pandorajewelryrings.us.com/ pandora
    http://www.louboutinredbottoms.us.com/ louboutin shoes
    http://www.curry4-shoes.us.com/ stephen curry shoes
    http://www.fitflopsshoes.us.com/ fitflop sale
    http://www.airmax90shoes.us.com/ nike vapormax
    http://www.pandora-jewelrysale.us.com/ pandora
    http://www.kyrie-4.us.com/ nike kyrie
    http://www.fitflops-sale.us.com/ fitflop
    http://www.adidas-ultraboost.us.com/ adidas ultra boost uncaged
    http://www.birkenstocksandalssale.us.com/ birkenstock sale
    http://www.katespadepurses.us.com/ kate spade crossbody
    http://www.lebron15-shoes.us.com/ lebron shoes
    http://www.jordan11spacejams.us.com/ jordan 5
    http://www.kd10-shoes.us.com/ kd 5
    http://www.jordans11shoes.us.com/ jordan 10
    http://www.pumafentyrihannashoes.us.com/ puma suede
    Reply 4/27/2018 6:16 PM
  2. yanxia39's avatar yanxia39
    http://www.airmax90shoes.us.com/ nike air max 2016
    http://www.jordan11spacejams.us.com/ jordan 7
    http://www.pandorajewelryscharms.us.com/ pandora charms
    http://www.nikeairmax-90.us.com/ nike air max 2017
    http://www.jordans11shoes.us.com/ jordan space jams
    http://www.curry4-shoes.us.com/ kyrie irving shoes
    http://www.hermesbirkin-handbags.us.com/ hermes birkin bag
    http://www.fitflopsshoes.us.com/ fitflop sandals
    http://www.adidas-ultraboost.us.com/ adidas ultra boost
    http://www.katespadepurses.us.com/ kate spade laptop bag
    http://www.birkenstocksandalssale.us.com/ birkenstock clearance
    http://www.pandora-jewelrysale.us.com/ pandora jewelry official site
    http://www.yeezyboost350shoes.us.com/ yeezy boost 350
    http://www.longchampbag.us.com/ longchamp le pliage
    http://www.pumafentyrihannashoes.us.com/ puma rihanna
    http://www.lebron15-shoes.us.com/ lebron soldier
    http://www.adidasyeezy-350.us.com/ yeezy shoes
    http://www.fitflops-sale.us.com/ fit flops
    http://www.salomonspeedcross3.us.com/ salomon xa pro 3d
    http://www.pandorajewelryrings.us.com/ pandora necklace
    http://www.nikeairvapormaxflyknit.us.com/ nike flyknit
    http://www.adidasnmdrunnerr1.us.com/ adidas nmd
    http://www.kd10-shoes.us.com/ kyrie irving shoes
    http://www.louboutinredbottoms.us.com/ louboutin heels
    http://www.kyrie-4.us.com/ kyrie irving shoes
    Reply 5/13/2018 9:56 PM
  3. yaling45's avatar yaling45
    http://www.goyardbackpack.us.com/ goyard tote
    http://www.asicss.us.com/ asics outlet
    http://www.uggs-forwomen.us.com/ uggs for women
    http://www.adidasyeezys.org.uk/ yeezy shoes
    http://www.balenciaga--shoes.us.com/ balenciaga shoes men
    http://www.under-armour-shoes.us.com/ under armour outlet
    http://www.birkenstock--sandals.us.com/ birkenstock
    http://www.birkenstocksandalssale.us.com/ birkenstock shoes
    http://www.pandora-jewelrybracelet.us.com/ pandora jewelry
    http://www.kyrie-4.us.com/ kyire 3
    http://www.nike-airmax270.us.com/ air max 270
    http://www.chromehearts-jewelry.us.com/ chrome hearts bracelet
    http://www.salomon--shoes.us.com/ Salomon
    http://www.adidas-yeezy-shoes.us.com/ Yeezy
    http://www.air-max-97.us.com/ air max 97
    http://www.adidasyeezy-350.us.com/ yeezy boost 350
    http://www.coach--bags.us.com/ coach
    http://www.ultra--boost.us.com/ adidas originals ultra boost
    http://www.montblancs.us.com/ mont blanc
    http://www.airmax90shoes.us.com/ nike vapormax
    http://www.nike--vapormax.us.com/ nike air vapormax
    http://www.nikeairmax-95.us.com/ nike air max 95
    http://www.adidasoriginalsnmd.us.com/ adidas nmd
    http://www.stephen-curry-shoes.us.com/ curry 4
    http://www.pandora--jewelrys.us.com/ pandora bracelet
    http://www.airmax95.co.uk/ nike air max 90
    http://www.nike--shoes.co.uk/ nike air max
    http://www.hermes--belt.us.com/ hermes belt
    http://www.chromeheartsjewelrys.us.com/ chrome hearts
    http://www.pandoras-jewelrys.us.com/ pandora bracelet
    http://www.monclers.uk/ moncler jacket mens
    http://www.salomon-boots.us.com/ salomon xa pro 3d
    http://www.moncler--jacket.us.com/ moncler
    http://www.kd10-shoes.us.com/ kevin durant shoes
    http://www.nikekdshoes.us.com/ kd 10
    http://www.oakley--glasses.us.com/ oakley eyeglasses
    http://www.pandoraearrings.us.com/ pandora
    http://www.monclerjacket.org.uk/ moncler jacket womens
    http://www.kyrie-irving-shoes.us.com/ kyrie 4
    http://www.huaraches.us.com/ huarache
    http://www.chrome--hearts.us.com/ chrome hearts ring
    http://www.katespadebags.us.com/ kate spade bags
    http://www.prada--handbags.us.com/ prada handbags
    http://www.airmax-2018.us.com/ air max
    http://www.celines.us.com/ celine handbags
    http://www.jordanretro11-shoes.us.com/ jordan 11
    http://www.longchampbag.us.com/ longchamp le pliage
    http://www.pandora-jewelrysale.us.com/ pandora charms
    http://www.pandora--rings.us.com/ Pandora Jewelry
    http://www.katespadepurses.us.com/ kate spade purses
    http://www.supremeshirt.us.com/ supreme shirt
    http://www.goyardbag.us.com/ goyard wallet
    http://www.air-max-95.us.com/ air max 95 black
    http://www.monclerjacketmens.us.com/ moncler jacket womens
    http://www.adidas-ultraboost.us.com/ adidas ultra uncaged
    http://www.salomonspeedcross3.us.com/ salomon shoes
    http://www.christianlouboutinredbottoms.us.com/ red bottom shoes
    http://www.adidasoriginalsultraboost.us.com/ adidas ultra boost uncaged
    http://www.michael-kors-bags.us.com/ michael kors handbags
    http://www.ray--ban.us.com/ ray ban eyeglasses
    http://www.yeezyboost350v2.co.uk/ adidas yeezy
    http://www.monclerjacketwomens.us.com/ moncler
    http://www.nike-airmax-2018.us.com/ air max 90
    http://www.swarovskis.us.com/ swarovski jewelry
    http://www.vapormaxs.us.com/ vapormax
    http://www.lebron15-shoes.us.com/ lebron 15
    http://www.coachbags-outlet.us.com/ coach handbags
    http://www.ray--bansunglassess.us.com/ ray ban sunglasses
    http://www.nikelebron15.us.com/ lebron james shoes
    http://www.valentino--shoes.us.com/ red valentino
    http://www.true--religion.us.com/ true religion jeans for women
    http://www.polo-ralph-lauren.org.uk/ ralph lauren shirts
    http://www.louboutinredbottoms.us.com/ louboutin
    http://www.curry4-shoes.us.com/ curry shoes
    http://www.ferragamoshoess.us.com/ ferragamo shoes
    http://www.polo-ralphlauren-outlet.us.com/ polo
    http://www.pandorauk.us.com/ pandora jewelry
    http://www.pandorajewelryscharms.us.com/ pandora Charms
    http://www.mcms.us.com/ mcm bags
    http://www.burberry-bags.us.com/ burberry bags
    http://www.nikeairvapormaxflyknit.us.com/ nike air force 1
    http://www.pandoras-uk.co.uk/ pandora charms
    http://www.adidas--shoes.co.uk/ adidas trainers
    http://www.mbts.us.com/ mbt
    http://www.nikeair-max.co.uk/ nike shoes
    http://www.airjordan11spacejam.us.com/ jordan shoes
    http://www.ralphlaurenspoloshirts.us.com/ ralph lauren polo shirts
    http://www.swarovskisjewelry.us.com/ swarovski
    http://www.ugg--slippers.us.com/ ugg boots
    http://www.moncler-coat.us.com/ moncler coat
    http://www.burberrys.org.uk/ burberry purses
    http://www.nikeairmax97.co.uk/ nike air max
    http://www.nikeairmax270.org.uk/ nike air max 90
    http://www.adidasnmdrunnerr1.us.com/ adidas nmd r1
    http://www.ed-hardys.us.com/ ed hardy shirt
    http://www.fitflopsshoes.us.com/ fitflop shoes
    http://www.truereligion--jeans.us.com/ true religion jeans for women
    http://www.rayban--glasses.us.com/ ray ban sunglasses
    http://www.adidasnmd-womens.us.com/ adidas nmd
    http://www.mulberrys.org.uk/ mulberry bag
    http://www.longchampbackpack.us.com/ longchamp
    http://www.uggs--boots.us.com/ ugg slippers
    http://www.rayban-glasses.us.com/ ray ban sunglasses
    http://www.skecherss.us.com/ skechers boots
    http://www.cartier-bracelet.us.com/ cartier glasses
    http://www.nikeairmax-90.us.com/ nike air max 90
    http://www.northfacejacketoutlets.us.com/ north face outlet
    http://www.pandorajewelryrings.us.com/ pandora necklace
    http://www.jordan--11.us.com/ jordan 11
    http://www.bvlgaris.us.com/ bvlgari wallet
    http://www.nikeair-max90.co.uk/ nike air max 2018
    http://www.pumarihannafenty.us.com/ rihanna fenty puma
    http://www.james-hardenshoes.us.com/ harden vol 2
    http://www.jordans11shoes.us.com/ jordan shoes
    http://www.jordan11.co.uk/ jordan 11
    http://www.northface-jacket.us.com/ womens north face jacket
    http://www.prada--bags.us.com/ prada handbags
    http://www.asics--shoes.us.com/ asics womens shoes
    http://www.adidasnmds.co.uk/ nmd
    http://www.yeezyboost350shoes.us.com/ adidas yeezy
    http://www.barbours.org.uk/ barbour outlet
    http://www.skechersuk.co.uk/ skechers outlet
    http://www.jimmychooheels.us.com/ jimmy choo heels
    http://www.eccoshoesoutlets.us.com/ ecco boots
    http://www.nikeairmax-97.us.com/ air max 97 gold
    http://www.lacosteshirts.us.com/ lacoste
    http://www.fitflop--shoes.us.com/ fitflop uk
    http://www.fitflops-sale.us.com/ fitflop
    http://www.jordan11spacejams.us.com/ space jam 11
    http://www.skechers--shoes.us.com/ skechers outlet
    http://www.burberry--scarf.us.com/ burberry shirt
    http://www.adidas-yeezyboost350.us.com/ yeezy
    http://www.nike-huaraches.us.com/ huarache shoes
    http://www.barbourjackets.co.uk/ barbour outlet
    http://www.hermesbirkin-handbags.us.com/ Hermes Wallets
    http://www.balenciagas-sneakers.us.com/ balenciaga trainers
    http://www.air-max-270.us.com/ nike air max 270
    http://www.ralphlauren--polo.us.com/ ralph lauren shirts
    http://www.oakley--sunglassess.us.com/ oakley eyeglasses
    http://www.fitflop--sandals.us.com/ fitflop
    http://www.mulberry-handbags.us.com/ mulberry sale
    http://www.redbottom--shoes.us.com/ red bottom shoes
    http://www.pandorasjewelry.co.uk/ pandora uk
    http://www.salvatore-ferragamo.us.com/ salvatore
    http://www.air-max-90.us.com/ nike air max 90
    http://www.yeezyboost350--v2.us.com/ yeezy boost 350
    http://www.pandora-charmsjewelry.us.com/ pandora earrings
    http://www.michaelkors-handbagss.us.com/ michael kors handbags
    http://www.salomonshoes.co.uk/ salomon skis
    http://www.kevin-durant-shoes.us.com/ kd 10
    http://www.new--balance.us.com/ new balance running shoes women
    http://www.uggsformen.us.com/ uggs for women
    http://www.mcm--bags.us.com/ mcm bags
    http://www.airmax270.co.uk/ nike air max 270
    http://www.adidas-superstarshoes.us.com/ adidas originals superstar
    http://www.redbottoms-louboutin.us.com/ louboutin shoes
    http://www.katespade--outlet.us.com/ kate spade purses
    http://www.supreme--clothing.us.com/ supreme jacket
    Reply 8/25/2018 4:48 AM
  4. yaling45's avatar yaling45
    oakley prescription sunglasses
    pandora jewelry
    ferragamo
    moncler sale
    nike vapor max
    valentino sandals
    nike air max
    salomon shoes
    ugg slippers
    moncler
    adidas nmd
    ultra boost
    ray ban sunglasses
    air max
    pandora jewelry official site
    michael kors handbags
    under armour shoes
    nike kd
    stephen curry shoes
    swarovski jewelry
    mont blanc outlet
    Salomon
    true religion jeans
    salomon shoes
    nike air max 90
    moncler sale
    ray ban sunglasses
    pandora charms
    yeezy boost 350 v2
    nike air max 90
    uggs for men
    ralph lauren polo shirts
    longchamp
    yeezy boost 350
    ecco mens shoes
    cartier jewelry
    birkenstock
    Hermes Handbags
    pandora charms
    lacoste sale
    lebron 14
    fitflop sandals
    new balance running shoes women
    kate spade purses
    air max 95
    christian louboutin
    coach bags
    supreme clothing
    jordan shoes
    birkenstock sale
    balenciaga shoes men
    barbour coats
    yeezy boost
    nike air max 270
    air max 270
    pandora bracelet
    asics running shoes
    nike air max 95
    ray ban aviator sunglasses
    burberry purses
    stephen curry
    air vapormax
    nike air max 90
    fitflop sale
    nike vapormax
    prada wallet
    moncler,moncler jacket
    chrome hearts bracelet
    goyard bag
    mbt womens shoes
    swarovski jewelry
    pandora necklace
    adidas superstar shoes
    ugg boots
    celine handbags
    jordan 11
    hermes belt women
    ed hardy jeans
    pandora jewelry
    fitflop
    kate spade purses
    air max 97
    moncler coat
    jordan
    nike air max 90
    ralph lauren outlet
    salvatore
    skechers
    adidas yeezy
    Yeezy
    balenciaga shoes
    nike air vapormax
    fitflop sandals
    barbour coats
    pandora jewelry official site
    harden shoes
    nike air max
    supreme jacket
    adidas nmd
    adidas nmd r1
    true religion hoodie
    bvlgari sunglasses
    adidas ultra boost
    jordan retro 11
    huaraches
    burberry scarf
    chrome hearts bracelet
    mulberry bag
    nike kyire
    ralph lauren outlet
    skechers outlet
    kd 10
    cheap oakley sunglasses
    air max 97
    nike air huarache
    air jordan
    pandora charms
    prada handbags
    pandora jewelry
    mcm handbags
    michael kors
    chrome hearts
    goyard bag
    north face outlet
    nike air force 1
    adidas yeezy
    salomon speedcross 3
    fenty puma shoes
    ray ban wayfarer
    air max 95
    uggs on sale
    polo ralph lauren outlet
    kate spade handbags
    adidas nmd womens
    red bottoms
    pandora bracelet
    adidas outlet
    north face
    nike vapormax
    jordan retro
    mcm backpack
    moncler jacket
    adidas yeezy
    mulberry handbags
    kyrie irving shoes
    lebron shoes
    jimmy choo heels
    longchamp le pliage
    burberry outlet
    nike air max 95 mens
    nike kd
    Pandora Bracelet
    skechers uk
    asics mens running shoes
    coach outlet
    christian louboutin shoes
    louboutin shoes
    ultra boost
    Reply 10/18/2018 8:17 PM

Leave a Reply

 [Quick Submit with Ctrl+Enter]

Remember my details
Notify me of followup comments via e-mail