Commercial vs. Rideshare Insurance: What’s the Difference?
Insurance is very important for anyone who makes money with or does work using a vehicle. Without proper coverage, you put yourself and your business in financial peril if anything ever goes wrong. That’s why you need to pick the right insurance for your business model. Commercial and rideshare insurance are two popular types of insurance for work vehicles, and you should know the difference between them.
What They Cover
These two types of insurance are very similar in regard to the plans they offer and what they cover. Any accident that involves your work vehicle is likely under these plans, and so is the driver. However, they aren’t interchangeable, even though they cover similar things.
When They Cover
The big difference between these plans is how long they cover you and under what circumstances. Commercial insurance works for vehicles explicitly for work, with little to no personal use. They cover vehicles completely. Rideshare insurance only covers the vehicle when you’re with a passenger or actively working to pick up someone.
This is a big difference for people who work as drivers in a rideshare organization, as they only need the coverage for a short time. This is why rideshare insurance is significantly cheaper than commercial vehicle insurance plans with the same coverage. This plan is perfect for rideshare drivers who only use it with customers.
The main thing to remember is that each insurance type suits a specific type of person. Companies want to use specific vehicles as their work vehicles, which need the constant coverage of commercial insurance. Individuals who drive for rideshare companies will benefit from rideshare insurance, as they only need it for a short time every day.
Understanding the small differences between rideshare and commercial insurance will help you pick the right one for you. It will provide the coverage you need for your company and help you in case of an accident on the job.