It’s been a while since Lyft has established its business, and now, they have become the direct competitor of Uber in giving rides and food delivery services.
As per the safety plan of riders, you are obliged to have special Lyft insurance before you get the job as a Lyft driver.
What’s the auto insurance policy?
The auto insurance policy states the coverage of work-related sustained injuries while driving as a Lyft driver.
Typically, this is a black and white situation, so don’t kid yourself that hiding information from your insurance company regarding the incident you went through would mean that you won’t be billed for the premium costs.
There are tons of factors that come to play when it comes to these expenses, and the following are some of them:
- History of driving
- Credit report
- Educational attainment
- Garage zip code
- Loss history
- Type of vehicle you’re driving
- Commercial or personal use
When will I need a commercial use for insurance coverage?
This policy will be in authority if you provide ridesharing, courier delivery, food deliveries, and cargo delivery services.
With ridesharing, you’ll have the responsibility to drive an individual from point A to their desired designation in exchange for money. While in food deliveries, you would be tasked by a company to deliver the goods, such as meal kits, beverages, entrees, and groceries, to the paying customers.
On the other hand, cargo dealerships require a person to handle cargo delivered by land, sea, or air. As a result, it is often considered complex insurance because it doesn’t have standard coverage. Instead, it varies based on the commodities and the chosen freight system for delivery.
Let’s not forget that courier deliveries also exist and are popular due to the emergence of Amazon and other e-commerce companies. So, it’s a safety precaution for couriers to be insured if they encounter an accident while individual, heavy, or bulk parcels to various recipients.
What is covered in ridesharing?
Ridesharing insurances cover you as you wait for a ride request, and once you accept the said request and are on your way to pick up the person who scheduled the ride. Along with when you’ve already picked them up and are driving to their point B.
It’s worth noting that your personal auto insurance also works regardless if you’re online or not in your Lyft application and continue to do so in the drop of the passenger as long as you’re logged in or currently waiting to be matched with another potential commuter.
In case the car drove forward and hit another vehicle when you weren’t in the driver’s seat, then you could rest assured that this could be taken care of.
Can Lyft give you insurance on your behalf?
The answer is “yes,” which is called third-party liability so that motorists who had a bodily injury or collision incident could be covered. At the same time, your current auto insurance policy could offer you a rideshare endorsement that’ll include additional coverage in your policy.
However, it would help if you discuss the matter with your insurance agent firsthand to weigh your options.
