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Essential Insurance for Rideshare Drivers

Rideshare driving has grown massively over the last decade. It has become a cost-effective way to get a ride. It can save you parking money when going to the airport or serve as a responsible choice if you choose to go out and drink. Alternatively, rideshare is an excellent source of income for those disinclined toward non-shift work. You can drive on a schedule that works for you and work as much or as little as you want. If you choose this path, you should know that one of the unique challenges associated with driving for a rideshare company is choosing the right insurance. Below, our guide will explain why specific insurance is essential for rideshare drivers.

 

Essential Insurance for Rideshare Drivers

Driving for a rideshare company is different from driving for personal use. Traditional insurance is often not enough when you drive for Uber or Lyft. Understanding why distinct insurance is essential can protect you and your car. This is because driving the same car for personal use and commercial purposes can make things murky. Most personal auto insurance excludes coverage for commercial activities. Unfortunately, this means you may not be covered in the event you get into an accident while driving for a rideshare company. Insurance for rideshare drivers is essential to ensure you are protected.

Insurance companies tend to look at your auto activity in a few phases when driving for a rideshare service. The first phase includes when you turn on the app but have yet to accept a ride. During this phase, your personal auto insurance may not cover you. The second phase includes when you accept a ride and are heading to the passenger. During this phase, most rideshare companies provide liability insurance. The last phase occurs when you pick up the passenger. This phase often includes liability, collision, and comprehensive coverage by the rideshare company.

 

The Importance of Protecting Yourself

There are several phases of your rideshare shifts from the point of view of insurance companies. Certain phases leave you and your automobile vulnerable. These vulnerabilities can be costly if you are not aware of your insurance policies. Keep in mind that each personal auto policy is different, and each state may differ when it comes to what rideshare companies cover. To avoid confusion, be sure to consider the coverage types offered by both your personal and rideshare company insurance. Having this knowledge can save you a lot of time and money in the long run. It can also protect your future earnings, as a collision can impact your ability to drive. 

 

What To Look For In Rideshare Insurance

Each state is uniquely different. So, it is crucial to understand what you are required to do in your specific state. There are general guidelines that are likely applicable in each state. Liability coverage is necessary in all phases of the rideshare drive. Additional coverage that is highly beneficial includes uninsured motorist coverage. This is beneficial if you get involved in an accident with someone who does not have insurance or who is underinsured. Comprehensive and collision coverage is also advisable. It covers damage to your automobile in the event of an accident, theft, and some other incidents. The following factors are important to consider when choosing an insurance service in Los Angeles

 

Overall Cost

Rideshare insurance may be more expensive than traditional car insurance. Compare prices to ensure the total cost fits within your budget.

 

Deductibles

One area of insurance that leaves many confused is deductibles. Check your deductible amount to ensure you understand what will come out of your pocket for any accidents. Insurance deductibles can vary greatly depending on the policy.

 

Coverage Limits

Check the coverage limits that your state requires. Ensure that the policy you choose meets the minimum requirements.

 

Insurance for Rideshare Drivers

If you are engaged in rideshare driving, contact the Safecal team. They offer a wide variety of policies to cover your needs. Contact their team today for more information! 

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What we do?
Safecal Insurance Services is a fire & casualty insurance broker licensed in the state of California. Safecal Insurance Services was founded in beautiful Pasadena, California. We specialize in providing low cost coverage in all lines of personal and commercial insurance.
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