Do I need special insurance if I ride Uber or Lyft? Florida law states that all persons who engage in any commercial activity with their vehicle must purchase commercial insurance. That’s why ride-sharing companies like Uber and Lyft typically protect drivers who use their platform with a commercial insurance policy tied to the driver’s app. The curious thing about this coverage is that it goes through four stages.
State 0: The Uber/Lyft app is turned off and the car is covered by your private insurance.
State 1: The Uber/Lyft app is on and the driver is waiting to be contacted by the customer. The Uber/Lyft company partially covers the vehicle.
State 2: The application is on, and the driver has contacted the client and is traveling to the indicated location. The Uber/Lyft company will provide more coverage.
State 3: The application is on, and the passenger is inside the car. The company’s commercial insurance provides full coverage until the passenger leaves the car and the driver returns to status 0 or 1.
However, the Uber driver can choose to expand the policy with his insurer, including special rideshare coverage that guarantees greater protection and avoids insufficient coverage.
It is also good to review the current auto insurance contract since some insurance companies exclude those motorists who drive for commercial purposes. If someone lies about it, the company could cancel the contract and even sue you for insurance fraud.
In short, if you are going to dedicate yourself to doing Uber/Lyft, it is best to contact your insurance agent and analyze all the implications that this decision may have on your auto coverage. Do I need special insurance if I ride Uber or Lyft?
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