What insurance do you need to drive for Lyft/Uber?

[JimmyJohns]

I've been thinking about driving for Lyft/Uber in WNY, since I have an 09 civic.

I've come across a few posts and horror stories about people getting into accidents, and their insurance telling them to pound salt since they're using their vehicle for ridesharing.

As far as I know, Uber/Lyft offer insurance for their drivers, but IIRC the deductibles are stupid high, I'm also not sure if this is an extra cost or automatically included.


I hope someone can chime in on this, I'd love to make a little extra money, but not at the risk of not being covered if something bad happens.

 

[dishdude]

There's a huge amount of liability carrying passengers around, IMO the pay they offer doesn't make it worthwhile.

Amazon offers a similar program but delivering packages, not sure if they offer it in your area but to me it makes a lot more sense than carrying passengers.

 

[JayhawkRoy]

I would talk to my own insurance company first.

Way back 25 yrs ago, my son wanted to do pizza delivery. The answers I got from my insurance company, combined with wishy-washy answers from his prospective pizza employer led us to find his part time employment elsewhere. Things may have changed today, but I think an accident becomes a nightmare for you if it is a significant one.

 

[Wolf359]

You do realize it's just a "little" money right? I think they say it's more like $15/hour or less if you're not busy. You do make more than that, but after factoring in insurance, wear and tear on the car, and gas, that's about the effective rate.

 

[wdn]

In many parts of the country Uber and Lyft are already saturated with drivers. I have read most drivers quit in less than a year. And of course all the liability is on you, and so is wear and tear on your car, and the fuel cost. Not saying don't do it but I would go into this with your eyes open.

 

[oil_film_movies]

JimmyJohns, Lyft has a $2,500 deductible on their collision & comprehensive, and coverage is only in that phase of driving as the "primary" insurance (primary means NOT your personal insurance) while you have a passenger in the car. And, you are required to have collision & comprehensive on your personal insurance if you want Lyft to "cover" you while a passenger is in the car. ... There is a million bucks in liability insurance while you have a rider in the car, for times when people get hurt (i.e., you run over a pedestrian while you have a rider in the car, etc.) ..... For other phases of driving, like going to pick up a rider, or trolling around waiting for the Lyft app to get a ride request, its your personal insurance that covers you for the most part.

Most insurance companies don't want any part of the "rideshare" game. I think Allstate will charge you something extra and allow it. If they find out you are working for Lyft and you don't have the extra coverage, they will likely drop you, and future insurance companies will know why they dropped you too....

https://therideshareguy.com/could-lyft-drivers-be-on-the-hook-for-a-2500-deductible/
https://www.insurance.com/auto-insurance/lyft-insurance.html

In short, its a mess. Its Lyft's and Uber's way of making a billion dollars while putting a lot of physical risk and potential financial harm on those who might clear a little over minimum wage.

 

[04SE]

Originally Posted By: JayhawkRoy
I would talk to my own insurance company first.

Way back 25 yrs ago, my son wanted to do pizza delivery. The answers I got from my insurance company, combined with wishy-washy answers from his prospective pizza employer led us to find his part time employment elsewhere. Things may have changed today, but I think an accident becomes a nightmare for you if it is a significant one.


There was an accident here in the past decade where the food company offered a guaranteed delivery time frame. Well, you guessed it. Delivery driver hit/killed someone. Aftermath was a nightmare. Company originally claimed that the driver was a contractor. Then they recanted stating he was an employee but he assumed all liability for driving despite their guaranteed timeliness and clear encouragement to make timely deliveries. Driver's insurance pointed at the company and the company's insurance pointed at the driver. I don't know if the deceased's family ever got anything or not.

 

[Mr Nice]

Get a part-time retail job and do not transport passengers for a few bucks per hour.

 

[Wolf359]

Originally Posted By: 04SE
Originally Posted By: JayhawkRoy
I would talk to my own insurance company first.

Way back 25 yrs ago, my son wanted to do pizza delivery. The answers I got from my insurance company, combined with wishy-washy answers from his prospective pizza employer led us to find his part time employment elsewhere. Things may have changed today, but I think an accident becomes a nightmare for you if it is a significant one.


There was an accident here in the past decade where the food company offered a guaranteed delivery time frame. Well, you guessed it. Delivery driver hit/killed someone. Aftermath was a nightmare. Company originally claimed that the driver was a contractor. Then they recanted stating he was an employee but he assumed all liability for driving despite their guaranteed timeliness and clear encouragement to make timely deliveries. Driver's insurance pointed at the company and the company's insurance pointed at the driver. I don't know if the deceased's family ever got anything or not.



That was Domino's. They kinda had to stop doing that because of that.

 

[Hall]

The cheapest option is to not tell your insurance company. IF something happens while you're "working", the passengers are your "friends". I wouldn't do this but it's an option....

 

[fdcg27]

There's really no such thing as ridesharing. It's really driving for hire.
Can you legally do this without proper licensure of yourself and your vehicle?
After an accident would be a bad time to find out.
Will your car insurance cover you for this type of commercial use?
Probably not and once again, this would be a bad thing to learn after an accident.
One of the dirty little secrets of this whole business model is that you as a driver/contractor accept all of the costs and all of the liability involved in transporting people for hire.

 

[demarpaint]

If I were ever inclined to do it I'd make [censored] sure I'm covered before taking on a passenger. I know insurance companies ask people that were involved in an accident if they were driving for Uber or Lyft. I'd want to see in writing who is covering me, my insurance or their's. Then check the fine print if any. I'm not about to lose a house and/or my life's savings to make a few extra $$ carting people around.

As Mr. Nice said get a part time retail job. IMO driving for either one of them isn't worth the risk or possible headache.

 

[ragtoplvr]

Originally Posted By: hallstevenson
The cheapest option is to not tell your insurance company. IF something happens while you're "working", the passengers are your "friends". I wouldn't do this but it's an option....


Felony insurance fraud. Serious business. Do NOT go there.

Rod

 

[mjk]

Good friend of mine just parted ways with Lyft, after a 5 year stint. Of the 2, Lyft seems to be the better option.

That being said, I'd have to be near destitute to drive dbags around. Trust me, your 'livelihood' depends on the ratings your passengers give you. All it takes are a few [censored] to lower your rating, and it will have an adverse affect on income.

 

[Mackelroy]

I saw an article recently. the reason turn over is so High (ubber/lyft), is its really closer to minimum wage, after all is said and done.


When you have a lot of job turn over, there's always a reason. Turn over of good jobs is normally much slower.

 

[CKN]

Yep^^^^^^^^^^^^McDonalds here pay between $11.00 and $12.00 an hour. Your better off flipping burgers.

 

[Snagglefoot]

Originally Posted By: dishdude
There's a huge amount of liability carrying passengers around, IMO the pay they offer doesn't make it worthwhile.

Amazon offers a similar program but delivering packages, not sure if they offer it in your area but to me it makes a lot more sense than carrying passengers.



At least the packages don’t leave puke on your back seat.

 

[Leo99]

Originally Posted By: Wolf359
Originally Posted By: 04SE
Originally Posted By: JayhawkRoy
I would talk to my own insurance company first.

Way back 25 yrs ago, my son wanted to do pizza delivery. The answers I got from my insurance company, combined with wishy-washy answers from his prospective pizza employer led us to find his part time employment elsewhere. Things may have changed today, but I think an accident becomes a nightmare for you if it is a significant one.


There was an accident here in the past decade where the food company offered a guaranteed delivery time frame. Well, you guessed it. Delivery driver hit/killed someone. Aftermath was a nightmare. Company originally claimed that the driver was a contractor. Then they recanted stating he was an employee but he assumed all liability for driving despite their guaranteed timeliness and clear encouragement to make timely deliveries. Driver's insurance pointed at the company and the company's insurance pointed at the driver. I don't know if the deceased's family ever got anything or not.



That was Domino's. They kinda had to stop doing that because of that.


When I drove for Domino's we had the 30 minute guarantee. Most people were cool but I had a few encounters. People would shut the lights out so you couldn't find their house, people threatened me once and called me "pizza boy" and the pizza went back to the store and they were told if they wanted it free, they had to come and get it. Even got into a tug of war with a pizza box with some college kids. The pizza was in the box but flew out and knocked their bong over. Fun times.

My auto insurance is very explicit and says no coverage if you're driving rideshare such as Uber or Lyft.

 

[Bandito440]

I don’t believe transporting passengers isn’t a “real job”, but that’s another conversation.

Some states allow you to purchase a rider; some require a full commercial policy. You’ll have to contact your insurance company or state’s DMV to inquire.

 

[Wolf359]

Originally Posted By: Snagglefoot
Originally Posted By: dishdude
There's a huge amount of liability carrying passengers around, IMO the pay they offer doesn't make it worthwhile.

Amazon offers a similar program but delivering packages, not sure if they offer it in your area but to me it makes a lot more sense than carrying passengers.



At least the packages don’t leave puke on your back seat.

There's other bodily fluids besides puke...

Originally Posted By: Leo99
People would shut the lights out so you couldn't find their house, people threatened me once and called me "pizza boy" and the pizza went back to the store and they were told if they wanted it free, they had to come and get it.


Well at least they didn't call you monkey boy.