Ride-share services can be an option that allows individuals to supplement their incomes or even work full-time. However, this type of work will carry its own risks and liabilities. Managing these liabilities will require drivers to invest in having sufficient insurance.
Myth: Standard Auto Insurance Coverage Is Sufficient For Ride-Share Drivers
A common mistake that many people can make when using ride-share or other gig services that require the use of their car can be assuming that their standard auto insurance will be sufficient. In reality, these policies will typically specifically state that they are only for your personal use of the vehicle. For those that will be using their vehicles for commercial reasons, there are separate specialized policies that will cover the unique needs of these drivers. For example, commercial drivers are often legally required to carry significantly more insurance coverage.
Myth: Ride-Share Driver Insurance Will Be Extremely Costly
While it is necessary to get an insurance policy that will provide you with the necessary coverage to safely drive, individuals will often greatly overestimate the costs that will be involved with these policies. In reality, many modern insurance providers can sell additional coverage that can allow individuals to use their vehicles for commercial uses while still keeping the overall costs relatively low. Additionally, you may want to choose a policy that will allow you the flexibility that you need if you decide to stop driving for the service for a period of time.
Myth: There Are No Risks To Carrying The Legal Minimum
Individuals who are shopping for insurance policies will often choose to only carry the legally required minimum amount that their area demands. However, this can come with its own set of risks. In the event of an accident, the legal minimum may not cover all of the damages and medical costs that are needed for any victims. In this situation, you will be forced to pay the damages that exceed your insurance coverage, which could prove to be extremely costly. Opting for the insurance coverage that offers the greatest amount of coverage that your budget can afford is an important step for reducing the liabilities that come with this work. More precisely, individuals may want to greatly increase their medical coverage as this can be one of the most expensive damages that can result from an automobile accident as even otherwise minor accidents can leave injuries that need ongoing or otherwise expensive treatments to correct.
Contact a local Lyft driver insurance company, such as Clover Insurance, to learn more.