Auto InsuranceCar InsuranceCommercial Insurance

Driving for Uber? Get This Type of Insurance

By March 29, 2019 No Comments

Wondering what type of insurance Uber drivers need? And what about Lyft? If you choose to drive for the mustachioed company, do you need to have a separate insurance policy or will your personal auto insurance cover any accidents? Have you joined the gig economy via TaskRabbit or Instacart and are driving your personal vehicle to make deliveries or drive to job sites?

With more people working as freelancers and using their personal vehicles for work, understanding what your auto insurance covers can be confusing. Most Florida drivers are aware that they need to maintain two types of personal auto insurance through a Florida insurance agency: Personal Injury Protection (PIP) and Property Damage Liability (PDL). Florida drivers are required to maintain policies of $10,000 for each PIP and PDL, but that’s just the minimum. If you’re driving as a freelancer, is this auto insurance enough? Will Uber or Lyft’s insurance policies cover an accident while you’re on the clock? And what if you get into an accident on the way to pick that up? Who covers that?

Insurance can be confusing—at OIG, we’re here to demystify insurance and make sure you’re protected. Here’s what you need to know about Uber insurance and insurance for other gig economy jobs.

Uber Insurance & Lyft Insurance FAQs

Working for a rideshare company like Uber or Lyft can be a great way to make some money. Often, though, driver’s aren’t 100% certain on what is covered by the ridesharing company’s insurance and what they’re responsible for. Here are a few answers to questions we hear frequently.

My personal auto insurance will cover me while I’m working for Uber, right?

Unfortunately, driving for a ridesharing company may invalidate your personal insurance.  Check your policy to see if it excludes “driving-for-hire.” Technically, when you work for a ridesharing company, even though you’re a freelancer and not an employee, this is considered commercial driving. To be properly insured, you may need an easy endorsement to your personal policy or even a commercial auto insurance policy. At OIG, we offer both personal and commercial auto insurance products and can help you find the one best suited to your needs.

Does my ridesharing company’s insurance cover me when driving to pick up a client?

Most ridesharing companies have liability insurance in place that will cover you when you’re driving a client. However, depending on the company, it may not cover damage to your vehicle. Because of legal challenges Uber now has a low level of coverage in effect when you have the app on. When your app is off, they do not offer any insurance. That means you must rely on your own insurance, and if your insurance is invalidated because you’re driving for hire, well… that could be catastrophic.

Is my ridesharing company’s insurance policy enough?

Drivers who have gotten into accidents on the clock report high deductibles and penalties for using their ridesharing company’s insurance policy. Some have even used their personal insurance, filing claims with their own carriers rather than with Uber or Lyft—which could constitute insurance fraud. If you’re concerned about ridesharing insurance, it’s better to get your own policy to know that you’re covered. Ultimately, Uber or Lyft’s insurance policies serve to protect those companies—not the drivers who work for them. While they provide some measure of protection, it’s typically not enough and can leave drivers with hefty bills.

Where can I get ridesharing insurance or commercial auto insurance?

At OIG, we can help you determine what type of insurance you need and provide you with various options. As Florida auto insurance agents, we can help you get a great deal on a variety of insurance products, and can even help you with your personal auto insurance or other insurance needs. Ridesharing insurance isn’t expensive—you’ll definitely make up the cost—and the protection it can provide you is invaluable.

Gig Economy Insurance FAQS

Beyond ridesharing, there are plenty of gig economy jobs that require the use of your personal vehicle. Here are some questions we often get about these types of gigs.

Do I need insurance if I work for Instacart or Amazon Flex?

Whether you’re delivering groceries or driving to a site to fix some plumbing, auto insurance can help protect you and your vehicle. Instacart does not currently offer auto coverage to its delivery drivers—and working for hire can invalidate your insurance. Before making another trip to Publix for a client, call an insurance agent to make sure you are properly insured. If your personal auto insurance policies are not in effect when you’re working for Instacart or another drive for hire company, you may need a type of commercial auto insurance such as ridesharing insurance.

Amazon Flex and Doordash do offer commercial coverage to their drivers, but that doesn’t mean the insurance policy will be enough. Make sure to read any insurance materials a company offers before signing up to make deliveries. Ultimately, you will be the one with a damaged vehicle should there be an accident, not the company or the client.

Do I need insurance if I work for TaskRabbit?

TaskRabbit does not offer any insurance to its users. That means you are responsible for any damage that may occur during your “task.” Depending on the task, this can lead to large liability issues. If you’re delivering for TaskRabbit, you may be invalidating your personal auto insurance. And since the company currently has no insurance for its “taskers,” you may be held completely liable for any damage caused in case of an accident. The same goes for home repair tasks. If a client feels like your repair has somehow damaged their home, they may hold you responsible. If you intend to work for TaskRabbit, it’s in your best interest to seek out the proper insurance.

Make Sure You’re Protected with OIG

It can be hard to make heads or tails of insurance policies. That’s why we help our clients by offering a variety of insurance policies that protect their interests and meet their needs. If you’re a gig economy worker, we can help you reduce your risk with the right insurance products. Request a quote online now to get started!