The main reasons for getting Ride-Share Insurance
Ride-share drivers are at constant risk during their work hours; this is due to the nature of the ride-share business. Drivers are in their cars for many hours, whether parked or driving between rides and during rides, the fact that they are in their cars is already a risk. Add to this the basic coverage they get from Uber, and you will find that Uber ride-share drivers are not fully covered. Another issue is that normal insurance will not cover ride-share driving and that to become a licensed Uber driver you need to produce an insurance card with your name registered on the card.
Ride-share insurance explained
Ride-share friendly insurance (or just rideshare insurance) is an insurance policy that covers drivers working for ride-share companies such as Uber, Lyft, and Sidecar. The insurance policy is different, it takes into account the professional status of the driver during work hours, just like a taxi drivers insurance policy.
To understand how ride-share insurance works with Uber is to understand how Uber manages its miles, Uber has three periods, and these are defined as:
- Period 1: When the car is parked or being driven, empty and waiting for a call. (Is not covered by Uber)
- Period 2: From the moment the driver received a call until the car reaches the pickup point. (Is not covered by Uber)
- Period 3: Begins the moment the passenger enters the car until the passenger departs the car. (Is covered by Uber but with a $1,000 deductible and a $1 million liability and collision clause)
Ride-share friendly coverage
Since the Uber coverage is limited and with certain constraints, rideshare coverage will cover the driver for all periods and include a deductible waiver. The coverage for collision and liability is dependant on the driver’s insurance budget.
Standard insurance policies
If a driver takes out a standard insurance policy, he is not covered in any instance of ride-sharing. This means that if the driver is involved in an accident or collision, he is not covered and must take the brunt of all damages and financial upon himself.
The Uber insurance features
The user’s insurance policy doesn’t cover periods 1 and 2; we already mentioned this a few times. So if you don’t get coverage, remember that if anything happens during periods one and two, you will have to pay for all the repairs and maintenance fees. You will also cover the difference between the Uber coverage of $25,000 for property and $50,000 for personal as well as $100,000 for injuries and the excess that would be decided by the insurance companies or in court.
Rideshare Friendly Features
Three ride-share friendly policies are available, and they are:
1. Periods 1 and two clauses
2. Rideshare tailor-made policies
3. Commercial insurance coverage
Period 1 coverage
These policies are standard insurance coverage with additional clauses that cover periods 1 and 2 and rename themselves Ride-share friendly. Many companies are offering these additional clauses as well as extended offering period three coverage. We provide a list of these at the end of the article.
Rideshare tailor-made policies
Some drivers do not want a standard policy and go-to a personal agent or broker that will create a special ride-share policy suitable for their particular needs and expectations.
Some commercial rideshare policies are available. These commercial insurance packages are provided by Geico, Erie, and Progressive. The usefulness of a commercial package is that they make a perfect addition to the Uber coverage giving the driver double coverage will ensure they drive relaxed and sleep well at night.
State Requirements for Period 1
Certain states make period one coverage mandatory, so drivers will need to find some insurance coverage to add to Uber s basic policy.
It is best if you take out a comprehensive ride-share coverage plan. Even if it added to the expenses and reduced some of your income, it is worthwhile having. So that you do not need to deal with the hassle of periods 1 and two incidents and also have ample coverage to assure you of period three incidents.