Do Ride-Share Drivers Need to Adjust Insurance for Commercial Driving?

If you’re driving for a ride-share service like Uber or Lyft in Texas, it’s important to understand how your personal auto insurance may not fully protect you while you’re working. Many drivers assume their standard policy is enough, but there are often significant gaps when it comes to commercial driving.

Understanding Insurance Gaps for Ride-Share Drivers

Personal auto insurance is designed for everyday driving and not for transporting passengers for a fee. Most personal policies specifically exclude coverage when your vehicle is being used for commercial purposes, such as ride-sharing. This means if you’re in an accident while waiting for a ride request, en route to pick up a passenger, or actively transporting someone, your claim may be denied.

While companies like Uber and Lyft may provide some insurance, their coverage often only applies during specific periods of your driving activity. For example:

• When the app is off, only your personal policy applies.
• When the app is on and you’re waiting for a ride, limited company coverage may apply, but it’s often not enough.
• When you’ve accepted a ride or have a passenger, company coverage is typically more robust, but there may still be deductibles and limitations.

How to Supplement Your Coverage

To fill these gaps, ride-share drivers can consider:

• Ride-share endorsements: Some insurers offer add-ons to your personal policy that extend coverage during ride-share activities.
• Commercial auto insurance: This type of policy is designed for vehicles used for business and can provide broader protection.

It’s important to review what your ride-share employer provides so you understand where you may need extra coverage.

How Our Team Can Help

At Erick Dodge Insurance Agency Inc, we work with Texas ride-share drivers to identify coverage gaps and recommend solutions tailored to your needs. Our team can help you compare ride-share endorsements, commercial auto policies, and explain how each option fits your driving habits.

Contact us today to discuss your ride-share insurance needs.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.