I have a question for you Mr. and Mrs. Uber driver. You are driving along the road and decide to work for Uber cause you’ve got some time to kill. Kudos to you for being so productive btw.
So there you are…waiting.
and waiting…
And then KABOOM! you get a ride. (Disclaimer: I don’t know the sound phones makes when you get a ride)
You’re on your way, spot the client, and pick them up.
So here’s my question:
When does your personal auto policy stop providing coverage and when does Uber begin to?
Uber, Insurance, and You
As a driver with a share in ride-sharing you should know when your coverage starts and when it ends.
To answer this we simply have to answer a very simple question. Are you using the car for business purposes?
Yes. So we turn to your average auto policy. I got my Mapfre auto policy from Ali here in the office.
(This is Ali)
Note what is says:
EXCLUSIONS
A. We do not provide Liability Coverage for any
“insured”:
5. For that “insured’s” liability arising out of the
ownership or operation of a vehicle while it is
being used:
a. To carry persons or property for
compensation or a fee;
-Mapfre Policy Jacket
It reads very clear here.
So when does it stop? The moment you turn on the app and say you’re available, working, your personal auto coverage stops. At this point you might covered by some coverage your ride-share program offers. Or, you have a specific endorsement in your personal auto coverage that extends it until you pick up a passenger. Once you start a ride most ride-share programs kick in with their own coverage and you’re personal auto coverage will most likely end for sure here. So Uber and Lyft’s policies are active as long as there’s a passenger in the car.
Don’t Risk Being Dropped
While some ride-sharing companies do provide excess liability insurance on top of what drivers have it doesn’t mean drivers are covered against all risks.
Drivers, you can be dropped by your personal auto insurance company if you use your car for business purposes. To avoid this simply be honest when looking around for insurance. If you don’t you can find your claims denied and your policy dropped for breach of contract. Fortunately there are hybrid policies that allow for ride-sharing so if you simply tell us your intentions we’ll work in making sure you’re properly covered. At CWI we work with companies that allow for this type of policy.
Be safe out there you entrepreneur you!
