Real-time ridesharing services like Uber or Lyft have become an increasingly popular way for quickly reaching your wanted destination. In fact, more and more people are choosing rideshare options over traditional forms of transportation such as a taxi or public transport.
And that’s not surprising.
It only takes a few taps on the mobile app to have a ride waiting for you in minutes. What’s more, all journeys are much safer for both the passenger and the driver – the whole trip is live tracked on a map, providing security and also making billing easier than ever before, as the fare is automatically calculated and charged using the customer’s preferred payment method.
Unsurprisingly, more people are opting to become rideshare drivers too – after a thorough inspection, you can start earning extra money while driving interesting people around the city.
However, every job has its own risks and being a rideshare driver isn’t an exception. Driving other people means that you’re not only responsible for your own safety, but for your passenger’s as well. That’s why knowing all the possible dangers and how to prevent them is a must.
Using your car for providing ridesharing services means that you are held to a higher standard of accountability, which can be costly if you don’t know how to protect yourself.
Luckily, there are ways to ensure that you are protected in case something goes wrong.
Read on, and we’ll reveal the three main reasons why every rideshare driver should consider investing in an insurance plan.
- You use your car for commercial purposes.
The minute you start using your car for transporting people for money, your personal auto insurance policy may stop working.
Even though many rideshare drivers use only personal auto insurance, in most cases commercial driving isn‘t covered. It means that in case of an accident, your insurer may not provide any coverage for vehicle damages and medical expenses.
To be completely sure what is included in your personal auto insurance, read a list of exclusions. If one of them involves using your car for business purposes, find a different type of policy that also covers commercial driving.
- You are on the road for longer periods of time.
A risk of an accident exists every time you sit down behind the wheel, but it grows bigger with an increase in the amount of time that you spend on the road.
Driving for long hours is exhausting and can make you less aware of what is happening on the road. Also, the reaction time slows down, which can reduce the ability to quickly you make decisions when a dangerous situation arises.
Finally, the truth is that simply having a passenger can sometimes be a distraction on its own – trying to keep up with a conversation can impact your awareness of the road as well as your driving performance.
- You are responsible for your own safety.
Most of the ridesharing companies cover all the insurance costs during the time you have an active order, but what happens when you wait for one?
The “gap” period exists from when you turn on your rideshare app but aren’t driving any customers yet. During this period, your personal auto insurance doesn‘t work anymore because you use your vehicle for commercial purposes but your rideshare company‘s insurance still isn‘t active too.
If an accident happens during this time period, no one will cover any of your bills – unfortunately, it‘s you who would have to cover all the expenses for all parties involved.
So, What Are Your Options?
Well, nowadays many insurance companies offer rideshare insurance options. It’s a mix between personal and commercial insurance packages and it can provide you the safety net when it’s most needed by filling in the so-called coverage gap period.
It’s important to study your options and find those that best suit your individual needs – you don’t want to risk getting into a situation that leaves you without coverage in case of an accident.
Luckily, there are many different rideshare insurance options, so if you do your research to find out what’s the best course of action for your individual situation, you will be all set to provide a good rideshare service while also making sure that you are protected.