Rideshare services such as Uber and Lyft have allowed more people to earn a living while driving their own cars. The use of your personal auto calls into question the need for commercial auto insurance protection. You might need it during times you use a personal vehicle for business purposes. If you work with one or more rideshare companies, what auto insurance protection do you need? How can it protect both you and your passengers from financial loss?

The Reason for Rideshare Insurance 

Your personal auto insurance may not provide adequate coverage for the  risks of working for a rideshare. This could be problematic for you if you have a wreck, especially while carrying clients. A lack of protection puts your personal finances at risk if injuries or property damage. Worse, if a loss were to happen, you may run the risk of losing your personal auto insurance coverage if you failed to disclose that you drove for a rideshare.

Limited Rideshare Auto Insurance Protection 

Your rideshare company might offer you a degree of insurance. However, the coverage might provide very little coverage, and this might vary depending on what part of your work you are performing. Drivers who are off the clock usually do not have protection from the company's insurance. 

Once you turn on the app, you might have a degree of limited liability coverage. Often, this will reflect what your state requires in liability coverage. For both Lyft and Uber, the limits are 50/100/25, which is: 

$50,000 per person protection for bodily injury 

$100,000 per accident protection for bodily injury 

$25,000 per accident protection involving property damage

Extra coverage, like comprehensive and collision, and underinsured/uninsured motorist auto insurance coverage become available when en route to pick up passengers or when your passengers are in the car. Keep in mind, the limits provided by your rideshare company might still not provide adequate coverage. It's up to you to determine if you want to expand coverage.

Alternative to Rideshare Car Insurance 

Instead of purchasing the car insurance provided by a rideshare company, you might have other options. See if your current auto insurance will allow you to buy a rider or endorsement for your current policy. This will allow your policy to apply appropriately when you are driving for a rideshare.

Driving your personal auto is a way to earn additional income for your household. Protecting your asset – your auto – requires you to have the correct amount of car insurance. You don't plan to have an accident or property damage while driving for a rideshare company. However, you can plan to have proper auto insurance coverage to protect your auto and your passengers if the worst happens.