My name is Eric Bowman, and if you have questions about insurance, this is the blog you need to read. I was always confused when I had to purchase insurance. I would either end up paying for insurance I didn't need or I wouldn't buy the right policy. I finally decided that I was going to learn all I could about insurance policies so that I would understand exactly what I was buying. Now, I am completely satisfied with my insurance and the coverage is just what I need. I realized that there are others who are probably just as confused as I was, so I am writing this blog to help others get the best insurance for their needs and budget. I hope that my blog gives you the information you need to make the right choices when purchasing insurance.
Did you know that the coverage provided by the Lyft auto insurance changes depending on the ride-sharing period? Knowing how Lyft driver insurance works is critical to avoid leaving gaps in your coverage. Continue reading to familiarize yourself with Lyft driver insurance.
What Is Lyft Driver Insurance?
Lyft driver insurance is a ride-sharing policy. A ride-sharing policy is a unique product covering part-time and full-time drivers who use apps to provide transportation services. Essentially, insurers provide ride-sharing coverage as an add-on to existing auto insurance policies. Ride-sharing policies cater to car repairs and passenger injuries after an accident. Notably, the policies are cheaper compared to commercial auto insurance.
What Does Lyft Driver Insurance Cover?
The coverage you receive under Lyft driver insurance falls under the following three ride-sharing periods:
Period One: App is Off
The first scenario is the duration when your app is off and you are not waiting for a ride request. During this period, Lyft driver insurance does not provide any coverage. Thus, you are protected by your personal auto insurance policy and its terms.
Period Two: App is On, Waiting for Request
The second ride-sharing period covers the duration when you put on the app and wait for a request. In this period, Lyft driver insurance provides liability coverage. If an accident occurs, the insurance will pay for bodily injury and property damage. Notably, liability insurance does not cover your injuries and damages to your vehicle. Instead, it pays for liability costs to other parties when you are the at-fault driver in an accident.
Period Three: During Pick-up or the Ride
Lyft driver insurance offers full coverage if an accident occurs when you are on the way to pick up or drop off a passenger. It also includes uninsured and underinsured motorist bodily injury coverage based on state limits. Besides, Lyft insurance may offer first-party coverages, including medical payment and personal injury protection if you are injured in the accident. Lastly, the insurance provides contingent collision and comprehensive coverage up to the car's actual cash value, but with a deductible.
If you are a Lyft driver, it is essential to know how a Lyft driver insurance policy works in the event of an accident. An experienced insurance agent will guide you on the ins and outs of the insurance policy and help out with claims processing in case of an accident. Without proper coverage, you may find yourself liable to pay for repairs and medical expenses out of pocket.
For more information, reach out to a company such as Clover Insurance.