With the rise of rideshare driving as a popular way to earn extra income, more and more people in Philadelphia and surrounding areas are signing up as Uber and Lyft drivers. However, many drivers are unaware of critical details regarding insurance coverage while working for these platforms, potentially leaving themselves at risk in the event of an accident.
Rideshare Insurance Gaps You Should Know
When driving for Uber or Lyft, your personal auto insurance typically does not cover you while you’re “on the clock.” From the moment you go online on the app to the time you finish a ride, your household auto insurance is inactive, and you rely instead on the coverage provided by the rideshare company.
However, this coverage is limited. Uber and Lyft offer only minimal coverage options, which may not fully protect you in the event of an accident. Here’s what their basic coverage includes:
– Medical Coverage: Up to $5,000 for medical bills if you’re injured while driving on the app.
– Liability Coverage: Coverage for passengers and other parties in case an accident is determined to be the rideshare driver’s fault.
The Hidden Risks of Uninsured and Underinsured Motorists
One of the biggest coverage gaps for rideshare drivers is the lack of uninsured or underinsured motorist protection. In Philadelphia, where more than 30% of drivers are uninsured, this can create a significant risk if you’re in an accident with an uninsured or underinsured driver. Without additional protection, you could be left with little to no compensation for medical expenses or vehicle repairs.
Protecting Yourself as a Rideshare Driver
If you’re driving for Uber or Lyft, review your insurance policy carefully to understand what’s covered and what isn’t. Supplementing your coverage with a rideshare insurance policy or other additional insurance can protect you against uninsured drivers and ensure you’re covered beyond the minimum policies provided by Uber and Lyft.
Our team at Kats Jamison and Associates offers free insurance policy reviews, so you can ensure you’re fully protected. Don’t leave yourself vulnerable to costly gaps in coverage. Contact us today to make sure your rideshare journey is as safe as possible.
