Rideshare Insurance for Today’s Gig Economy

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Jake Wintczak

email: jakew@primeis.com

rideshare insurance

Rideshare Insurance for Today’s Gig Economy

Rideshare apps seem like an easy way to pick up extra money in today’s gig economy. Many of your clients are sure to have jumped on this trend. Looking at Uber alone, an average of 50,000 new drivers each month operate in 700 cities and 63 countries, completing an average total of 18 million trips per day to serve over 99 million active users. Around four million drivers are using this particular app. Lyft has 1.4 million, Grab has 2.6 million, and DiDi drivers rank at 21 million and counting. But do they all have rideshare insurance?

While ride-sharing is certainly a popular and often lucrative endeavor, your clients should not be under the impression that they can simply hop in their vehicle and expect their personal auto insurance to protect them while driving for a rideshare. Even though Uber, for example, offers some insurance coverage to its drivers, you will serve your clients well by explaining the ins and outs of rideshare insurance and why they might want to augment anything their company provides.

The Pitfalls of Company-Based Rideshare Insurance

Let’s take a look at what Uber offers. While its drivers are on a trip, they are covered by a $1 million insurance policy in terms of third-party liability. It takes precedence over personal auto insurance. They also have a $1 million uninsured/underinsured motorist injury policy that protects drivers if a motorist with inadequate coverage injures someone in the rideshare vehicle.

Here is where things are not so good: Uber’s collision and comprehensive coverage is contingent. Its drivers need to have personal coverage to have the company’s policy kick in. And, while they offer insurance between trips, it may not be sufficient nor the right kind for your client. If you dig further into ride-sharing, for example, commercial-licensed ride-sharing like UberBLACK, UberSUV, and UberTAXI require commercial insurance policies.

Many personal auto insurance policies don’t cover drivers while they’re traveling to pick up a rider or driving with a rider on board. And the coverage offered by rideshare companies comes with a high deductible.

Too many rideshare drivers assume that the company has their back, providing all the coverage they need. The truth is that there are often coverage gaps, out-of-pocket payments for incidents, and the risk of losing personal auto coverage if an accident or incident happens while working as a rideshare driver.

What if your client is involved in an accident while waiting for a rideshare job? Their personal auto policy and their rideshare company’s coverage might not pay for all of the resulting costs.

Helping Your Clients Access Rideshare Insurance

Your clients who drive for rideshare companies are on the road longer than many other drivers, responsible for the safety of their passengers, and use their vehicles for commercial purposes. The risk of a lawsuit is high when you put all of these factors together. To be protected, your clients should have rideshare insurance that extends beyond their personal coverage and that of their rideshare company.

Working with Prime Insurance Company, we can help you access rideshare insurance or commercial auto insurance for your clients, so they can work safely and securely, knowing that their personal coverage and their financial stability are not at risk. It’s easy to apply for rideshare insurance through Prime. Even if an insurer turned down your client in the past, we specialize in situations like these. If it’s possible to secure coverage, we’ll do it.

Your clients also benefit from the skill and expertise of our risk management team. Comprising industry professionals who know the details of even niche industries like ride-sharing, they will help your clients assess, reduce, and in many cases, mitigate the risk that comes with their work, by suggesting changes and offering advice.

If a claim does arise, your client’s rideshare insurance is invaluable. Our team will be available 24/7, working to quickly and fairly resolve claims for our insureds. We stay in close contact and communicate transparently so that you and your client know what’s happening and what to expect.

Learn more about our product lines by emailing quotes@primeis.com, call us at 800-257-5590 or go to our website at primeis.com. For more about us, follow us on Facebook, YouTube, LinkedIn, and Instagram, or read our blog.

Rick J. Lindsey
Rick Lindsey

President, CEO and Chairman