5 Things To Know About Rideshare Insurance

13 May 2021
 Categories: Insurance, Blog

Side hustles seem to be becoming the main hustles for more and more people. If you are thinking about joining a rideshare app, you need to make sure you have the right insurance coverage to protect yourself, your vehicle, and your passengers.

1. Rideshare Insurance Is for All Transportation Apps

First, it is essential to understand that rideshare insurance is not just for apps where you are carrying another passenger to earn money. Rideshare insurance is for all transportation apps where you deliver something from one location to another, be that a person, groceries, or a food order. Rideshare insurance is an all-encompassing term for both rideshare apps and delivery apps.

2. Rideshare Insurance Fills the Gap 

Second, rideshare insurance doesn't replace the commercial insurance provided to you through the app you are working with. However, that commercial insurance is limited and can leave you with a gap in coverage between your commercial insurance policy and your personal insurance policy.

Rideshare insurance is designed to step in and fill in the gap between your personal insurance coverage and your corporate coverage. That way, if something happens to you, you can rest assured that you will have the insurance coverage you need.

3. Rideshare Insurance Allows You to Keep Your Personal Insurance

If you are using your vehicle for business purposes, you should be sharing that information with your insurance company. If you are using your personal vehicle for work, which is what ridesharing and delivery side-hustles are, and you have not declared that, you could lose your personal insurance.

By declaring the work, you are doing and getting a rideshare insurance add-on to your policy; you are helping to protect your personal insurance coverage.

4. Rideshare Insurance Is Affordable

Rideshare insurance is an affordable add-on to your regular insurance policy. With most insurance policies, it will only increase your insurance policy about the cost of a lunch or two, or a ride or two, each month. It is low-cost and worth adding to your insurance policy to ensure you are always protected.

5. Rideshare Insurance Is Commonplace

When rideshare insurance first came out, it used to harder to find. That is no longer the case. At this point in time, most of the major national insurance companies offer rideshare insurance add-ons, as do many regional and local insurance providers. As delivery and rideshare apps become more common, more insurance companies are working to serve this demographic of workers.

If you use an app to deliver people or things, you need to add rideshare insurance to your personal auto insurance policy to ensure you are always protected when you are on the road. Most insurance providers now offer this type of insurance add-on; talk to your provider to see if they offer this benefit and what it will cost you.