Ridesharing: Are You Covered?

abelins | March 18, 2016



With Uber, Lyft, and other ridesharing services, many individuals are able to conveniently get rides with the use of an app on their phone.

However, who is covered and for what becomes fuzzy. Our staff at abel insurance will help clarify auto insurance for ridesharing services and offer tips to stay safe.


Ride-Sharing Drivers

Let’s pretend you’re a driver for a ridesharing service.

You may have received a letter recently from your insurance company. However, you don’t read the letter because it looks long and boring, so you toss it in the garbage.

Later that night, you’re driving two passengers across town and you’re hit by an SUV. Your passengers are hurt and your car is damaged.

Unfortunately, that important letter explained that your personal auto policy excludes public livery usage. This includes using your car as a Transportation Networking Companies (TNC). A TNC is a company that provides transportation by smart phone using their personal vehicle to transfer passengers. This includes ridesharing, pizza delivery, newspaper delivery, and more.

You’re not covered.

Your personal auto insurance does not cover you to use your vehicle for commercial purposes. In certain states, two ridesharing services, Lyft and Uber, do offer their drivers Rideshare Auto Insurance Coverage. Wisconsin is one of those states.

You can also purchase commercial auto insurance through your insurer and then you’re covered.

Please contact your insurance agent for more information!


Ridesharing Passengers

You and your friend call for a rideshare to get across town. The car pulls up and you and your friend jump in.

Unfortunately, the car gets in a fender bender. You and your friend suffer minor injuries. You think on your way to the hospital am I covered?

In short, if you have personal auto and/or health insurance, these will probably help cover the cost of damages and health care. Your Med Pay from your auto insurance will kick in and help cover your medical expenses. Don’t wait until you’re on the way to the hospital to figure out if you’re covered.


How You Can Protect Yourself

  • Check what the terms and conditions say when you’re signing up to be a passenger. You should read it and understand it.
  • Know how to use a ridesharing service safely
  • Understand your insurance coverage


Ridesharing Service

Overall, ridesharing services are easy to use, inexpensive, and convenient when visiting a new city.  We encourage caution when using these services to stay safe and educate yourself before using a ridesharing service to ensure you’re not stuck without coverage.


Have fun with it and take chances, but be aware!


Please contact us at abel insurance if you have any questions.

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