Before looking into tips about the proper ridesharing insurance, let's first establish what is carpooling and ridesharing.
Companies like Uber and Lyft brought confusion in the mind of everyone because of their incorrect use of the word ridesharing to define their services. In reality, those are simply taxi-like services with a good technology, but it surely has nothing to do with ridesharing.
This type of transport is defined by two simple rules. The first one is that the driver offers a ride that he intends to do for a personal purpose. Whether it is for a daily commute to work or for a long distance trip to visit family in another city, the driver wants to go from A to B. Second, ridesharing and carpooling is not about making money, but sharing the cost of the ride (fuel, insurance, fixed fees related to the car, etc).
Quite often, members using Ridesharing.com as drivers come to us with this simple question: Should I have a specific insurance coverage to carpool and rideshare with my car? There is surely no easy answer to this question. You should always check with your current insurance to make sure it will be enough in the event of an accident.
The first thing to look up is your liability coverage. Increasing the number of regular passengers in your vehicle can increase the likelihood of an injury and liability claim in the event of a collision. For this reason it can be a good idea to go for higher liability coverage to protect yourself and your passengers.
In doubt, give a call to your insurance broker to discuss this aspect of your coverage.
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