Ridesharing has become incredibly popular over recent years. According to The New York Times, more passengers took Uber than yellow cabs for the first time ever in the summer of 2017.
Passengers are not the only ones benefitting from the expansion of companies like Uber and Lyft. People who opt to drive for these market leaders can make a significant amount of money, especially if they hit the road at strategic times.
Before you sign up for the app and clear your schedule, though, it’s important to consider all the financial ramifications of using your personal vehicle for business purposes. For example, even if you have adequate insurance coverage, it is unlikely that your provider will cover the damages should you get into a crash while transporting a passenger.
Of course, if you perform due diligence prior to picking up your first passenger, a collision does not have to impact your financial security. This might include reviewing the extent of any coverage provided by the ridesharing company and purchasing a supplemental policy to fill any gaps.
Unfortunately, not all ridesharing drivers have the foresight to review their insurance before accepting passengers. If you were hurt in a wreck with an uninsured or underinsured motorist, turn to Eells & Tronvold Law Offices, PLC.
A Cedar Rapids accident lawyer will evaluate your case to determine all potential avenues for pursuing compensation. Call 319-393-1020 to schedule a free consultation.
Will Personal Car Insurance Cover Accidents That Occur When You Are Driving for Uber or Lyft?
In general, personal car insurance does not cover incidents that occur while the policyholder is using the vehicle for business purposes. This applies to all work-related errands, and not just “driving-for-hire.”
Although companies like Uber and Lyft provide their users with supplemental coverage, it has limitations. For example, when Uber drivers are transporting passengers while actively using the app, they have coverage for:
- Their liability to a third party;
- Bodily injury caused by an uninsured, underinsured, or hit-and-run motorist; and
- Damage to their own vehicle.
Although this sounds like considerable protection, the collision and comprehensive policy that covers damage to their own vehicle is contingent upon their personal auto insurance. It only applies if the motorist has a current policy that includes collision coverage when not operating the vehicle for business purposes. Additionally, it has a $1,000 deductible, which may be more than some motorists can reasonably manage following a wreck.
As a result, it is wise for most Uber drivers to purchase supplemental insurance over which they have full control. For example, by obtaining their own business policy, they can choose a deductible that works for their particular financial situation.
Sadly, even if you take a proactive approach to preparing for all potential scenarios, you cannot rely on others to do the same. If you were involved in a crash with an Uber driver who failed to purchase adequate supplemental coverage, contact Eells & Tronvold Law Offices, PLC today.
Call 319-393-1020 to schedule a free case evaluation with an accident attorney in Cedar Rapids. You can learn more about car crash claims in Iowa by visiting usattorneys.com/car-accident/iowa.