The gig economy has seeped into every part of our lives. One of the most popular gig jobs that people do either for full-time work or for extra cash is ridesharing. By using personal vehicles for work, it creates an insurance dilemma. Automobile insurance is binary. When you are driving your personal vehicle on your personal time, your personal auto insurance policy is in effect. If driving a commercial vehicle, that vehicle’s commercial policy is in effect.
How Is Driving for a Rideshare Different?
Driving for rideshare isn’t particularly complicated. If you are in an accident while on the clock, then the insurance issued by the company that you’re driving for will cover you. If you are not on the clock, but on your personal time, your personal automobile insurance policy is in effect. However, when you have signed into the application and are waiting for a task or a ride, you may not be covered at all. Progressive rideshare insurance is there to cover that gap.
How Does Progressive Rideshare Insurance Work?
Progressive rideshare insurance covers you in places where a personal policy does not. For instance, you know that if the app is off and you are not waiting for a rideshare, that your personal policy is in effect. What you may not know is that when your app is on and you are waiting for a request, that the insurance for the company you’re driving for has only a small amount of liability coverage. When you have accepted a request and boarded your passengers, that is when the $1 million liability policy comes into effect. In the period in which the app is on and you are waiting for a ride request, insurance for both Uber and Lyft covers only $50,000 per person, $100,000 per incident, and $25,000 in property damage.
What Are My Options for Insurance?
It really depends on how often you drive. If you are driving for ridesharing service intermittently, then simply adding Progressive rideshare insurance to your personal policy might be the best bet. However, driving more frequently or driving full time may mean that a commercial policy is the best idea. When driving with a commercial policy, you are fully covered all the time that you are on the app. Rideshare insurance is not always available state to state, so in the event that insurance companies in your state do not offer rideshare insurance, a commercial policy will keep you securely covered.
Closer to Home
Miami and rideshares go together like peanut butter and jelly. They were just made for each other. If you are driving for a ridesharing service or otherwise using your vehicle for task sharing or other business purposes, you owe it to yourself to speak with an independent insurance agent. We can give you the big picture on your insurance, and get those gaps covered. Talk to your independent E and L insurance agent today and drive confidently all year long.