Auto Insurance Options for Rideshare Drivers

Insurance for Ride Shares in San Diego, CA

In October of 2016, a traffic accident involving an Uber driver in Milwaukee brought into focus the issue of adequate insurance for drivers who provide ridesharing and personal transportation services. The driver explained that the accident was her first moving violation, and that no one was hurt. However, she ended up with about $4,000 worth of damage because she found out her own auto insurance coverage stopped the moment she tapped her smartphone screen to indicate her availability to Uber.

In the end, Uber partially covered the insurance gap at the time of the accident by paying for the damages caused to the other vehicle, but there is an important lesson to learn from this case. For San Diego drivers who work for services such as Lyft and Uber, ridesharing requires specific coverage that is not typically provided by personal auto insurance in San Diego.

The determination of adequate coverage should ideally be made by a professional insurance agent, broker, and representative, but the driver should start off by inquiring with the ridesharing service about the coverage they provide. In some cases, Lyft and Uber may agree to provide coverage when a passenger is in the car, but not when the driver is going to a pick-up location or is waiting on riders to call.

It is important to note insurance regulation is in the purview of each state, which means California policies are designed with compliance in mind. In general, ridesharing drivers should look into higher coverage limits and comprehensive coverage that goes into effect the moment they indicate their availability. The idea is for drivers and passengers to be covered as much as possible while providing the service.

Whether you are a rideshare driver and want to know more about your options for coverage or want to cover your personal vehicle and need cheap auto insurance, San Diego residents can rely on the insurance experts at American Tri-Star. Give us a call today at 619-272-2100 and one of our friendly agents would be happy to assist you.