Get Ride-Sharing Insurance
It seems like almost everyone has fallen in love with ride-sharing. And why not. Who wouldn’t want to earn some extra money working a few hours a week or more for Uber, Lytf, Curb or one of the growing numbers of companies that lets you use your car as a taxi of sorts. It’s a great idea for riders and drivers.
But before you get too far along on your new business venture, make sure you’ve got your insurance in order. After all, you wouldn’t want to be exposed to tens of thousands of dollars in liability costs just because you weren’t adequately covered.
Obviously if you’re thinking about getting involved as a ride-sharing driver you’ve already got a car, license and auto insurance. But your personal auto policy probably doesn’t extend to commercial activity like turning your car into a taxi.
This creates an enormous insurance liability gap for drivers. The bigger ride-sharing companies have covered this gap by providing insurance to their drivers while they are transporting paying passengers. But this coverage even has its limits because once your passengers get out, even if you’re still “working” and on the ride-sharing “clock,” your personal insurance may not kick in between fares.
Many states now also have gotten involved, requiring ride-sharing drivers to have extra coverage in place. New Jersey, for example, requires drivers to carry liability coverage in the amounts of at least $50,000 for death or bodily injury per person; $100,000 for death or bodily injury per incident; and $25,000 for property damage when they are working but not necessarily carrying a paying passenger. When a driver is carrying a passenger, New Jersey now demands at $1.5 million for death, bodily injury and property damage. A driver must also carry primary automobile insurance for medical payments benefits in an amount of at least $10,000 per person, per incident, which only applies to driver. Finally, coverage for uninsured and underinsured motorist coverage must be provided in an amount of at least $1,500,000.
Obviously, the insurance issues become even more complicated because coverage requirements vary by state and the ride-sharing company. Fortunately, a growing number of insurance carriers are now offering policies tailored to the ride-sharing market.
The bottom line: Ride-sharing may be a great way to earn money but you need to make sure your coverage is in order and you and your riders are protected. Need help? Give us a call at Muller and we’ll get you squared away.