Should You Get Commercial Insurance for Ridesharing?

Should You Get Commercial Insurance for Ridesharing?

If you want to become a driver for a ridesharing app or company, you need to take some steps before picking up your first customer. A big step you need to take is getting insurance, as you need to cover yourself for your physical health and financial stability. While you should have personal auto insurance, this article will explain why you should also get commercial insurance before you start ridesharing.

Personal Auto Insurance

Personal auto insurance is a necessity for anyone who owns and operates their own vehicle. This insurance can help cover you from various incidents and accidents. However, it’s not the only kind of insurance out there, and it has many restrictions and limitations that make it improper for ridesharing insurance.

Commercial Vehicle Issues

The big issue with personal insurance is that any vehicle you use to drive others counts as a commercial vehicle while you’re working. This means personal insurance won’t cover any accidents that happen on the job. As long as your app is on, your vehicle counts as a commercial vehicle and needs commercial insurance.

How Commercial Insurance Works

In instances of ridesharing, commercial insurance will partially cover you as long as the app is on. The insurance doesn’t cover you fully until you receive a ride request and drive to pick the person up. As long as you’re on an active request or have a customer in your vehicle, your work vehicle insurance should cover you.

What It Covers

At its base, commercial insurance is liability insurance that helps cover medical payments for injuries to others if you get in an accident. This is a huge deal, as medical costs can be immense, and you’ll be on the hook to pay them if you’re at fault for the accident. This is why you need commercial insurance for ridesharing.

While commercial auto insurance can be a bit expensive, it can prevent you from paying thousands more in the event something does happen when you’re driving. Commercial insurance covers you while working and helps you make a better profit from driving others.