- Jackson Wise
Uber's Big. Red. Flag.
So many people nowadays use uber, lyft, doordash, etc as a nice little side hustle, and some people even do it full time, But there's a huge issue that most drivers don't know about.
And this applies to all drivers whether you're driving people, fast food, or groceries.
Once the app is open, you're on the clock
And once you're on the clock
your personal insurance won't cover you if anything goes wrong.
There are 3 major things to note here
TNCs provide very minimal insurance for their drivers. Usually the most they'll give you for a totaled car is $25,000. And that is ONLY for the other car-no money is given towards your car's damages. They're REALLY looking out for their drivers.
Their coverage comes with a very high deductible. This means you'll be paying about $2,500 every time you need to use Lyft's insurance. That's like 75 hours of driving just for the deductible.
If you want more than this minimal coverage you have 2 options. The first is you can add a ridesharing endorsement. This uses you personal insurance while the app is open, and while you are still waiting for a client, but not any other time. Sometimes this endorsement also pays the $2,500 deductible...sometimes. The second option is to buy a commercial car insurance policy for yourself. This is the best option for those who want some real protection.
So. If you drive for a ridesharing company, please be aware of this. We don't want you to be blindsided and lose your car.