How is My Car Insurance Affected When I Drive Uber?
By now, you must have heard of the ridesharing apps such as Uber and Lyft. These are apps that will allow you to share your car with some people, and they pay you to get them to their destination. Well, it is just like an old-fashioned taxi, but this time round you are not a taxi. With such a scenario, you will be working with a personal car insurance cover. Considering that carrying people for money is a commercial activity, then you might be violating the terms and conditions of your cover. So, what happens to your insurance when you start working as an Uber driver?
Before answering that question, we have to look at what is personal car insurance. Well, this is the type of insurance that covers your family, friends, and any other occupant in the vehicle who is not paying to get to their destination.
Each time you are driving for Uber, there is a limit to when your personal insurance cover comes in to pay for damages. When you transport people or belongings to get money, you are no longer using it for personal use. Being used as a commercial vehicle requires that you get yourself a commercial insurance policy.
How to Protect Yourself?
Well, Uber and Lyft all have some good news for their drivers. They no longer have to be worried about the damages when these companies offer an additional cover for them. Yes, both Uber and Lyft provide a cover for liabilities up to $1 million. As much as this is the case, you need to understand when these policies will cover the damages.
First, you have to be logged into the app and carrying a passenger. When these two are not met, then you are not doing any commercial activity, and your personal insurance cover is still in play. Sometimes these insurance terms can be confusing to drivers and passengers alike.
It is then best to involve a car insurance attorney to understand more about the cover anytime you get into an accident.