With new industries allowing people to rideshare in their vehicles, new laws and insurance standards are constantly evolving. If you plan to drive as a freelance contractor, you need to look into your insurance options because you may not be covered under your current policy.
Of course, Uber provides some coverage for periods of your drive time, but there are gaps in the coverage that could leave you responsible in the event of an accident.
If you’re interested in learning more about insurance for Uber drivers, then you’ve come to the right place. Here, we’re discussing some things you should know before you sign up to drive for the service. Keep reading to learn more.
To define what Uber does is referred to as ride-sharing. This is a service that competes with taxis and black car services. Instead, passengers find a ride via an app on their smartphone that arranges for a pickup.
That’s where you come in. The vehicle is driven by a private contractor that meets certain eligibility requirements. Insurance for Uber is one of those eligibility requirements.
In order to sign up as an Uber driver, you must provide proof of insurance. But, you need to make sure that your policy actually covers ride-sharing or it could be voided completely.
It’s important to check with your policy and your agent before assuming that you’re covered to perform ride-sharing duties. If your policy doesn’t cover it, you may need to switch insurance companies and expect to pay higher premiums.
If your insurance company finds out that you’re ride-sharing and didn’t notify them, you could be dropped. This would mean paying higher premiums with an insurance company that will accept you as a high-risk driver. You’re considered high-risk when you’re dropped from a policy.
Uber insurance essentially works when the app is on. This means that you have designated coverage for times when you’re waiting for new customers and when you actually have them in your vehicle. All other times, you need to be sure your regular policy is covering your trips.
It’s important to be cautious of your policy terms and conditions going into a contract with Uber so that you’ll know what discussion to have with your insurance company. You should contact your insurance company as soon as you plan to drive for Uber so that you can be sure you’re fully covered on your first trip.
Insurance for Uber drivers can be tricky and confusing so it’s important to ask as many questions as you can to be sure you understand your policy fully. Don’t ever assume that something is covered. Always confirm each detail carefully and concisely so that you also know what you’re paying for.
If you plan to drive for Uber and you’re looking for an insurance policy you can count on, feel free to contact us. You are not required to hold a commercial driver’s license to drive for Uber in North Carolina.
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