08 Aug 2016

Insurance With LYFT and Uber

Many people assume that they are insured by Lyft and Uber, or that their personal car insurance will cover them in the event of an accident while they are driving. In reality, the insurance provided by rideshare companies like Lyft and Uber is not what it seems, and the lack of information provided about this coverage leaves many drivers in the dark.

While you are driving with either of these companies, the coverage is dependent on a couple of variables. Basically, your status is broken up into three separate categories, which we will refer to as period 1, period 2 and period 3.

Period 1: You are driving around with the Uber or Lyft app open, but have not yet been matched with a passenger. During this period you have contingent liability coverage with Uber and Lyft. Contingent liability coverage means that if you are in a collision, you will first have to make a claim with your personal insurance provider, and only if that claim is denied will the insurance from Uber and Lyft kick in. When it does kick in, it is only liability insurance, you will not be given collision or comprehensive coverage. The limits of this of contingent coverage are 50/100/25, which will not be enough to cover you for a bad accident.

This is problematic because driving for a rideshare company is considered a commercial activity, and no personal insurance policy will cover you for this type of activity. Personal insurance policies will deny most claims placed during period 1, and lately they have been investigating many of these claims. Furthermore, they are likely to cancel your insurance policy after such a claim is made. This leaves drivers in a vulnerable position, as Lyft and Uber cover liabilities to the extent of their policy limits, but all vehicle repairs would come out of the pocket of the driver.

Period 2: When you have been matched with a rider and are on your way to pick them up. During this period you are covered by the $1 million liability policy that is offered by Lyft and Uber. There is also a contingent collision and comprehensive policy offered by Uber and Lyft during this period, but the process for filing under this coverage remains the same. You have to first file the claim with your own insurer, which could result in policy cancellation, and only then will Uber and Lyft step up. There is also a deductible under collision and comprehensive policies for both of these companies. For Uber you must pay a $1000 deductible, and for Lyft you must pay a $2500 deductible.

Period 3: When you have picked up the passenger, the entire period of time that the passenger is in the car until drop off. Coverage provided by Lyft and Uber is identicle to their coverage under period 2.

You should never drive for Lyft or Uber without your own personal coverage, as their policy is contingent upon you having this coverage. There are some insurance companies offering a rideshare insurance policy for drivers. Policies differ from state to state, but are not much more expensive than your average policy. Such a policy is strongly recommended for anyone looking to mitigate the risks of driving with Lyft and Uber.

 

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08 Aug 2016

Cheaper Insurance In Arizona Because of RideSharing

Nothing in your car insurance policy in Phoenix, AZ is going to jump out at you and tell you how to make those premiums go down. But something that does jump out at you are those fluorescent flyers you’ve probably seen at your job-Rideshare Wanted. Have you ever considered replying to one of those flyers? It may seem like an inconvenience to ride with someone else to work. After all, everyone knows that getting a little me time in the car is one of the pleasures of driving-listening to your own music, having time to think, sipping your coffee and trying to wake up for work. Would you be willing to give a little bit of that up, though, if you knew it could save you a considerable amount of money on gas, car insurance, and car repairs?

With gas prices so unpredictable in Phoenix, AZ, many people are finding that rideshare can save them cash because of using less gas. It also saves wear and tear on your car, allowing you to avoid doing costly repairs and maintenance on your vehicle so often. In the meantime, rideshare can offer you the chance for valuable networking with coworkers. At a time when jobs are scarce, the more contacts you make within your organization now the better off you can be later on. What if something happens and your car needs to be in the shop? Now you already know someone who can give you a ride, someone you are familiar enough with to ask at the last minute. What if you’re sick one day but need to get something to the office? Now your new friend could help you out.

In Phoenix, Arizona many people choose to live in quiet, newer housing developments that are located in the beautiful desert areas on the outer edges of town. This is completely understandable given the current housing market, where houses in these outlying areas have become even more affordable than ever and a family can truly live in luxury at a low price. However, the drive to work from so far away can cause stress on both your mind and your pocketbook. Even if you don’t live extremely far away from work, traffic during rush hour can still cause a person to waste gas and put “city miles” on the car-lots of stop and go, causing unnecessary wear and tear.

Did you know that in addition to all the above reasons people in Phoenix, Arizona are trying to share rides to work, you can also save money on your car insurance? Less miles driven per year often means lower rates. Check it out for yourself by getting a quote, and find out how you can save. Next time you are at work, why not create your own flyer. Instead of typing the words, “Rideshare Needed”, why not try “Who wants to save some money with me?”

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