7 Reasons Rideshare Drivers Need Commercial Automobile Insurance

Young woman rideshare driver with customer in backseat

What if simply doing your job could end up ruining your whole life? 

This is something that rideshare drivers face every day unless they have good commercial automobile insurance. There are serious risks of accidents and injuries each moment that you are on the clock, and all it takes is a single careless moment to lead to a life-changing rideshare accident. 

If you’re a rideshare driver, then you need the protection of commercial coverage. Not convinced? Keep reading to discover the top seven reasons rideshare drivers need commercial automobile insurance. 

1. Better Protection if You Injure Someone 

Obviously, the biggest danger to delivering passengers to their destination each day is that you might inadvertently injure someone. Rideshare accidents could easily result in the injury of one of your passengers or even pedestrians on the road. 

In the event of such an accident, it’s highly likely that the injured parties would take legal action. Should that happen, your existing rideshare car insurance may not be sufficient to cover your legal fees (more on this later). With commercial coverage, you have the added liability protection that you need to stay safe. 

2. Enhanced Liability Protection for Property Damage 

While most rideshare drivers are (understandably) most worried about injuring passengers or pedestrians, it’s important not to underestimate the threat of accidental property damage. After all, your job involves driving on the road all day, so it’s very easy to accidentally cause a fender bender while driving. 

If you should happen to crash into a very expensive car, then even a minor accident may result in many thousands of dollars in damage. This damage could be too much for your employer’s commercial rideshare insurance and will almost certainly be too much for you to pay out of pocket. When you have the added cushion of your own commercial automobile insurance, you don’t have to worry about a single accident landing you in major debt that could haunt you for the rest of your life. 

3. Your Personal Insurance Won’t Protect You 

If you’re new to being a rideshare driver, you may think that your existing automobile insurance may be enough to protect you in the event of an accident. However, individual coverage is usually not enough for insuring rideshare vehicles. And if you’re working for a company like Lyft or Uber Eats, you may also be required to take out both a collision and comprehensive policy on your vehicle if you want to use your own coverage. 

Obviously, that can get very expensive over time. If you have commercial coverage, you may be able to rely on this to more comprehensively protect your vehicle. Ultimately, it’s a win/win: you get more robust protection on the business side of things without having to take out more personal coverage than you may actually need. 

4. It’s More Affordable Than You Think 

One reason that some rideshare drivers hold off on getting commercial auto insurance is that they worry that it will be overly expensive. While your exact premium may vary based on a number of factors, the average cost of this coverage is only $147 per month. 

Depending on your budget, this may still seem like a high amount. However, keep in mind that the average cost of automobile liability settlements is $23,900. By getting commercial coverage, you can help protect yourself from a nasty lawsuit that could change your life forever. 

Image of a man's hand holding a phone with a rideshare app on the screen

5. Your Rideshare Coverage Is Insufficient 

Perhaps the main reason that rideshare drivers feel like they can skip commercial coverage is that they are counting on the insurance provided by their employer. If this sounds like you, then you should know that your rideshare coverage may be insufficient in the event of a major accident. 

For one thing, the amount of coverage offered by your employer may not be equal to the amount of personal or property damage that you accidentally cause. More alarmingly, employers like Uber have strict rules regarding exactly when liability coverage does or doesn’t kick in, so you may think you have enough protection only to discover at the worst possible time that you’re not covered at all! 

6. Medical Payments Will Be Covered 

As we have noted, rideshare passengers are far more likely to take you to court if they get injured in your car. But what if you had a simple way of reducing those odds and potentially saving yourself from getting saddled with a huge, post-lawsuit debt? 

One of the best things about commercial automobile insurance is that it will pay for your medical bills and those of your passengers in the event anyone is injured. That makes for one less bill that you have to worry about after an accident. In many cases, your ability to pay for the medical costs of injured passengers will keep them from turning around and suing you. 

7. Every New Passenger Is a Risk 

The average person may not think that being a rideshare driver is all that dangerous. However, you know better than this; the truth is that every new passenger is a risk. Any one of a million different variables could cause a simple ride to turn into a catastrophic accident at a moment’s notice. 

While you can’t predict the future, you can do your best to protect yourself from these risks. By supplementing your existing rideshare car insurance with commercial coverage from a great carrier, you can make sure that any accidents you have won’t rob you of a great future. 

Get the Best Commercial Car Insurance for Rideshare Drivers Today! 

Now you know why rideshare drivers would benefit from commercial automobile insurance. But do you know who you can trust to keep you safe out on the road? 

InsureOne offers rideshare drivers the protection they need when they need it the most. If you’re interested in such security, we’re always ready for you to get a quote online. Alternatively, you can pick up the phone and give us a quick call at 800-836-2240. Finally, feel free to come into one of our nearby offices at your earliest convenience!