According to the most recent surveys and calculations, there are around 1.4 million people living and working over the entire continent of North America as Lyft drivers. Drivers who want to drive for Lyft must have the appropriate insurance coverage.
When it comes to liability, comprehensive, and collision insurance for Lyft drivers, there are coverage gaps that must be addressed. Accidents that occur while picking up or transporting passengers may leave you with higher out-of-pocket expenses.
The following information on Lyft’s affordable auto insurance and how to ensure that you are fully covered is provided.
Ride-sharing and insurance
It is common practice for insurers to divide the duration of a trip involving a rideshare driver into three distinct coverage periods:
Period 1: The app is running. a ride request has been sent to you
Period 2: A passenger has been assigned to you. You’ve arrived at the pick-up location.
Period 3: The passenger has boarded the vehicle. When you drop the passenger off, this period ends.
Lyft’s cheap car insurance in georgia covers different periods of your journey. When the app is running, your policy is in effect. Driving for Lyft requires special low-cost auto insurance, so it’s important to know what your insurer will pay for in the event of an accident and whether or not you will be held liable.
what Lyft’s insurance policy includes
During the first period, Lyft provides the least amount of service. There is no additional cost to drivers if they already have comprehensive collision coverage through their insurance during Periods 2 and 3.
Lyft’s insurance policies are summarised here:
Comprehensive and collision coverage are not available in Period 1 due to low liability limits.
Damages to persons and property are covered up to $100,000 per incident by Lyft’s general liability insurance. Insurance experts recommend $100,000 per person, $300,000 for each incident and $100,000 for property damage. This coverage is significantly less than this.
Liability insurance protects you in an accident involving another driver or passenger. Any damage to your vehicle or medical expenses is entirely your responsibility.
When you already have comprehensive and collision insurance on your policy during periods 2 and 3 of your policy, Lyft will supply you with a supplemental insurance plan during these periods.
To protect you and others, Lyft provides $1 million in third-party liability insurance, bodily injury and property damage liability coverage for uninsured or underinsured motorists, and optional comprehensive and collision insurance up to the underlying cost of your vehicle. Lyft’s insurance doesn’t cover any expenses related to an accident or injury until you’ve paid a deductible of $2,500 under the latter plan.
There are coverage gaps in the policy of Lyft, but relying on your insurance isn’t the best option either.
Is my own auto insurance coverage going to cover my Lyft rides?
Auto insurance policies for individuals are designed solely for the owner’s private vehicle use in the event of an accident. A clause in every personal insurance policy explicitly excludes commercial activities from the coverage. You must purchase additional insurance coverage once you begin driving for a ride-sharing service.
The personal policy will cover the driver’s activities, while the commercial policy will cover the driver’s ride-sharing services.
If you do not try to hide your status as a rideshare driver from your insurance company, you will not put yourself or others at risk.
Unless you notify your regular insurance provider that a rideshare company employs you, your auto insurance might become invalid. In an accident, you would be held liable for all damages.
Additionally, you may be able to obtain the additional insurance coverage you require from this company. Rideshare drivers can purchase a commercial policy or add a rideshare endorsement to their existing one when getting other insurance coverage.
Adding a rideshare endorsement to your policy will raise your insurance premium, but it’s much less expensive than a commercial policy, which could cost you thousands of dollars a year.
A commercial policy for Lyft insurance must be obtained once a person decides to provide ride-sharing services to the public. Their insurance provider must know they will be giving ride-sharing services once they have their commercial insurance policy. The ride-sharing endorsement will be added to their current policy by their insurance company at this time.
Conclusion
Inquire about ride-sharing coverage from your current insurance provider, or get a commercial vehicle policy quote to fill in the gaps between Lyft’s and your insurance. Compare the prices of the commercial and ride-sharing plans offered by your insurer to determine which one meets your needs and budget the most effectively.
