Thinking about driving for Uber or Lyft?

Transportation network companies such as UBER & LYFT have become quite popular and certainly can be a convenient way to get around or even make extra money.  But what are the risks?  (You knew there would be risk – it’s an insurance Blog!)

In most cases, the Uber or Lyft car is a personal auto and is only used as a conveyance part of the time.  Most private auto insurance policies do not cover you when you are transporting someone else for pay.

If you are thinking about driving for Uber or Lyft, you should ask your auto insurance company a few questions:

 

 Will my policy exclude coverage while driving for Uber or Lyft?

  If my policy does cover me while driving (for Uber or Lyft), what coverage is provided?

In PA. the PUC (Public Utility Commission) currently requires Uber & Lyft to provide commercial coverage once the driver has turned the app on and begins looking through passengers through when a passenger is discharged, however, this coverage may not be all you need.

And you should ask Uber or Lyft a few questions too:

 What are my responsibilities and who should I contact in the event of an accident?

  Does the commercial policy provide comprehensive and collision coverage or just liability coverage in case someone is injured?

  What are the coverage limits in the commercial policy?

  What are the deductibles in the commercial policy, and who pays the deductible?

Coverage may have significantly different limits and deductibles from your personal policy. Make sure you know the details of the commercial policy and who is responsible for bearing the additional costs.

 

If you have a car loan or leased vehicle, you should also ask your lender or Lease Company if the Uber or Lyft commercial policy complies with the lender or lease company insurance requirements for the loan or lease agreement?   If the commercial policy does not comply, what happens?  It may be a violation of the lender or lease agreement.