When we think about the world of ridesharing we often think about the benefits such as being our own boss, meeting new people and making a living thanks to our love of driving, right?
On the flip side, insurance is one of the last things on our mind. We don’t want to have to worry about what-if situations and would much rather focus on enjoying the road.
That said, in California, insurance for ridesharing is a crucial component of keeping you and your passengers safe. Likewise, you can’t truly make a living as a rideshare driver until you have your insurance sorted out.
Why Insurance is So Important
For starters, let’s break down why rideshare drivers need to concern themselves with insurance in the first place.
Despite popular belief, in California, your personal insurance policy typically does not cover your rideshare activities. In other words, as soon as you’re driving under the umbrella of Uber, your coverage completely changes. Most people don’t realize this and it could lead them to some troubling situations as a result.
Also, bear in mind that ridesharing in and of itself lends itself to potential accidents and mishaps on the road. Between potential distracted driving and the unpredictability of others on the road, you can’t assume that you’re immune to accidents.
Location is Everything
Insurance is totally different across state lines. There could be a massive difference between rideshare insurance options in California versus other states such as New York or Ohio, for example: until you do your homework, you’re essentially in the dark. When researching insurance, make it a point to look at state-specific policies.
Remember also that insurance rates vary depending on whether or not you’re located in an urban or rural area. Given that Uber drivers typically thrive in more populated areas, expect your rate to reflect busier streets and more potential for accidents. Think about it: the more often that you’re on the road, the more potential there is for you to need to activate your policy.
You shouldn’t let these sorts of revelations get you down, though. After all, you must have auto insurance regardless of if you’re a rideshare driver or not: the better your policy and coverage, the less you have to worry.
Getting a Good Deal
The price tag is oftentimes a huge determining factor for car insurance. While we would love to have all of our bases covered in terms of our policies, doing so is easier said than done if you’re on a tight budget. That said, some crucial tips for finding the best deals include the following:
- Looking at providers that provide incentives and discounts for people with clean driving records or bundled insurance policies
- Skipping collision coverage if your car is below its market value, considering that the insurance payout wouldn’t be worthwhile in that situation
- Explore smaller insurers locally behind the big names: you may be surprised at what they offer in terms of price
The Fine Details of your Policy
Oftentimes, trying to figure out your auto policy is like trying to read a book in a foreign language. Endless jargon and long forms can be exhausting, so knowing exactly what details to ask about is a major plus.
For example, you need to figure out whether or not your policy covers damages related to weather or other “act of God” insurance events. Furthermore, do you know what happens if you’re caught in an accident and the other driver is uninsured? Most importantly, you need to ensure that your passengers are covered as part of your policy.
In California, rideshare coverage is ideal versus commercial insurance because it’s exponentially cheaper; however, you need to double-check that you won’t’ be blindsided by any surprises in case of an accident.
Don’t let yourself be overwhelmed by insurance if you’re a new rideshare driver. While there’s certainly plenty to mull over, making the right choice ultimately means shopping around and assessing what you need based on your location and budget. Once you’ve sorted out your insurance, you’ll be well on your way to scoring new passengers with peace of mind.
Kidal Delonix is a contributor to Mr. Hoffman's blog. The views and opinions are entirely his/her own and may not reflect Mr Hoffman's views.
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