Uber and Lyft Insurance

I was taking my little walk around Old Town and I saw the now familiar Lyft sticker in the window of a parked car. Lyft and Uber have been in the news a lot lately. They both recently went public and let’s just say the stocks have not exactly taken off the way the ride sharing service has. Side note, does anyone remember when you could tell a cab driver where you were going and they would just drive there? No navigation no maps? 
Are you a Uber or Lyft driver? Do you know how your insurance works if you are a driver for either service?
Here’s the breakdown of how insurance works with Uber and Lyft. There are three periods of coverage for your insurance. The first phase is your regular car insurance. And that covers you when you aren’t working. So, if you are driving to your friends house to hang out or you are going to the store to get something your regular auto insurance is going to cover you.
The second period is when you are now working for Uber or Lyft. You have just received a client via your app. You alert Uber or Lyft that you are on your way to pick up the customer. The insurance provided by Uber and Lyft is now covering you and your car.
But, what happens if you are logged in to your app and you don’t have a customer? Well, this is the point where you have no coverage. Most auto insurance companies will deny a claim if they find out you were on the job, even though you weren’t with a customer. The insurance companies consider this a commercial use of the vehicle. And in turn personal auto insurance companies will not cover business use. So, in fact you are now driving with no insurance.
What do you do to cover the area where you are logged into your Uber or Lyft app and not in route to pick up a passenger? Well, there are companies that offer endorsement for this period. Not all companies offer this endorsement so you need to call around. The other option is to buy a commercial insurance policy that covers you all the time. Those can get very expensive but they are another option.
It is important to make sure your insurance agent knows what kind of work you do so they can find the best and proper coverage for you. If you deliver pizza, or you work for Uber or Lyft, or if you are a pool guy with signs on your truck for your company let the agent know. Yes, it may cost extra to cover certain situations. But, at the end of the day you want to make sure you are truly being covered. Not just saving a few dollars by telling your agent that you aren’t working right now.
Call for a quote today. Add the endorsement if you drive for money. 951-395-0754.