Driving for Hire and Car Insurance
Considering becoming a driver for hire throughLyft, Uber or Sidecar? Before you do, there are a few things you should know before signing on to be a driver for a ridesharing service.
These companies differ from traditional taxi services in that passengers do not hail a cab, but rather contact an independent driver using an app that they download to their smartphone.
Drivers for ridesharing services use their own vehicles and are required to have proper auto insurance. Ridesharing companies often provide some supplemental insurance coverage, but as the services are relatively new, the corporate policies and procedures are still changing and evolving (as are the laws that govern them in different states).
What You Need to Know Before Becoming a Driver for Hire
Policy Exclusions-- Check that your personal insurance covers you for this type of activity. Often, "driving for hire" is excluded from many standard personal (versus commercial) automobile policies.
Exact Coverage Amounts-- Review your coverage limits to determine if your coverage is adequate for the potential liability you are taking on by driving for these services.
Supplemental Coverage-- Find out what supplemental insurance is available from the ridesharing service you plan to drive for. Because their policies are constantly changing, it's a good idea to review them on a regular basis to avoid any insurance gaps.
Licensing Requirements-- Determine if your state requires you to have acommercial drivers' license. Failure to comply may result in prosecution and insurance claims you file could be denied.