Latorre Insurance is a licensed independent insurance brokerage serving North and South Carolina, with offices in Charlotte, Greensboro, and Raleigh.
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Lately, it seems like we are in the year of the side hustle.
For those unfamiliar with the term side hustle, it refers to the jobs you work on the side, in addition to your full-time job. They’re incredibly popular among millennials, but all generations are adopting second jobs for financial reasons, as well as to expand their portfolio of experience.
As you might have guessed, a favored side hustle these days seems to be working for ride-sharing companies like UberX and Lyft. A common question agents like us hear from customers considering working for these companies is: What type of insurance do UberX and Lyft drivers need?
Ride-sharing companies do require that their drivers show proof of auto insurance before they’re hired. Our agents can help point you in the direction of the best policy for you.
If you work for a ride-sharing company, the most important thing to know is that you are considered an independent contractor. Not an employee. From an insurance standpoint, this means that your car is classified as personal, which means that your vehicle is covered under your own auto insurance policy.
So the bad news is that damages to your car will be covered under your personal policy, and not under a policy provided by the company. The good news is that these companies will usually offer some form of supplementary protection, which can include liability, collision and personal injury protection when you’re on the clock.
This supplementary protection can be used to pay for losses that aren’t covered under your personal policy. Unfortunately, this supplemental protection isn’t always enough and is typically limited to very specific events (for instance, liability might only be covered when a passenger is in the car).
In many cases, the supplementary coverage from the ride-sharing company just isn’t enough. This is why most insurance agents will recommend that get the most coverage you can afford before becoming a driver. In fact, there are personal auto insurance policies available in North Carolina that will benefit Uber and Lyft drivers the most!
Want to talk more about the type of insurance you need to become a ride-sharing driver? Contact us today!