With the growing popularity of ride-share (Uber, Lyft) and car-share (Car2Go) companies, it is important to know your potential insurance risks.
As a ‘ride share’ driver:
The moment your app is online, you are operating ‘for hire.’ This is an exclusion on most personal auto policies.
Ride-share companies do provide coverage for their drivers, but it can vary. For example, Uber provides $1M in liability coverage for their drivers once they have either accepted a ‘trip’ and/or when they have a passenger in the vehicle. However, they provide very limited coverage while the app is online and you do not have a route or passenger.
As a ‘ride-share’ passenger:
Most ride-share policies provide $1M in Commercial Liability and $1M in Uninsured/Underinsured Motorists coverage. According to Uber, their policy has “up to $1 million per incident for bodily injury or property damage to passengers.”
It is also likely that your own personal auto policy medical or personal injury coverages would apply.
When using a car-share service:
When you rent from a car-share like Car2Go, your rental fee includes their very minimal level of car insurance. Your personal auto policy coverage would likely also apply as it would be considered a rental car.
Information from this article was gathered from:
- Insurance for Ride Sharing with Uber
- Car2Go – What is the Insurance Coverage?
- Lyft – Insurance Policy
Information may vary based on your carrier, state and policy. Please contact your Cox Insurance team for more specific information.