Auto Insurance is a concern for those who choose to drive with ridesharing companies such as Uber and Lyft. The fact that you are transporting around other people, insurance companies are likely to consider the vehicle commercial and thus require an upgrade with increased payments on insurance. A driver may essentially be forced to upgrade as they are not going to want to pay out of pocket in case of an accident, where the auto insurance company likely doesn’t cover passengers in a business operation context.
- Being a rideshare driver may seem lucrative and interesting, but something that must be taken into account is the type of auto insurance it requires.
- Due to the nature of the job, Uber and Lyft rideshare cars are considered commercial vehicles, which requires a different type of auto insurance.
- Without purchasing the proper insurance for rideshare drivers, drivers can end up paying enormous costs in case of an accident.
“It must be interesting meeting new people all day and cruising around town.”