Brookhurst Insurance provides workers compensation insurance to all types of businesses across the United States. We are located in Encino, California and are available to serve all of your business’s general liability needs.
Back in 2014, Uber and Lyft introduce expanded liability insurance for their independent drivers, providing cover for their riders to the tune of up to $1 million if injured when commuting in a vehicle using their service. Any civilian drivers involved in a crash with an Uber or Lyft vehicle would have to follow the standard claims process.
But things are not that straightforward when dealing with insurance, especially for a rideshare driver. There are three tiers that these ride hailing services use to determine liability:
Period 1. When the Uber app is “on” and the driver is waiting for a request
Neither Uber nor Lyft offer collision coverage during this period, but they provide limited liability coverage to a maximum of $50,000 for bodily injury and a total of $100,000 per accident.
Period 2. The driver is en route to pick up a passenger - app is “on”
The hailing service providers offer both collision and liability coverage during this period. The deductible for Uber for collision insurance is $1,000, while that for Lyft is $2,500.
Period 3. There is a passenger in the vehicle
The coverage is the same for both companies as above.
You should keep in mind that Uber’s and Lyft’s insurance coverage is only activated when the driver’s personal motor vehicle insurance fails to cover the damages. Unfortunately, many auto insurers often fight the charges, and end up with the ride sharing drivers losing their personal policy.
The Insurance Challenge for Uber Drivers
Considering that your personal insurance is unlikely to offer compensation if they discover that you are working with Uber or Lyft, it is important that you find the right rideshare insurance that applies to your new business.
The alternative to rideshare policies is commercial insurance, but it is very expensive for Uber drivers with most providers asking for $3,000 to $5,000 per year. Rideshare insurance, on the other hand, is quite affordable at $100 to $200 per month.
But ride sharing insurance is not available to all Uber drivers across the country, and those in most states only have access to one insurance option.
Considering that commercial vehicle claims cost an average of $45,000, you can’t risk operating as an Uber without the necessary auto insurance policy.
Where Brookhurst Comes In
With a wealth of experience in business insurance, Brookhurst insurance brokers can help you find the best insurance package available to ride hailing drivers in your state.
Generally, rideshare insurance is readily available in most states with a high concentration or ride hailing drivers. Our brokers can help you find the best rideshare personal auto insurance policy that offers period 1 coverage in your state. This will supplement Uber’s or Lyft’s insurance cover, keeping you at ease when on the road.
If rideshare insurance is not available in your state, we will help you get the best and most affordable commercial auto insurance policy to cover motor vehicle damage and liability expenses for crashes that occur during your hailing operations.
Get In Touch With Us
Please contact Brookhurst insurance agents to help you find the right insurance package for your budget and needs as an Uber driver.