Buckle Team

learn@buckleup.com

10.16.2019

How Rideshare Insurance Works

The Buckle Difference

As a rideshare driver, you probably think you’re covered by your current insurance plan, but you likely don’t have the coverage you need. When you work as a rideshare driver, you’re an independent contractor and not an employee of the rideshare company. This means liability for accidents or damages while conducting rideshare activities are your responsibility. The transportation network companies (TNC), like Uber and Lyft, do not protect your interests in the event of an accident, injury or damage. You must secure the right insurance coverage to protect you, your property and your passengers. Otherwise, you will be responsible for the financial and legal obligations caused by an accident.

Auto Insurance Options for Rideshare Drivers

Personal auto insurance does not cover your rideshare business activities. In fact, personal insurance policies specifically exclude coverage when using your vehicle for commercial purposes. You must acquire special insurance coverage specifically for commercial use or rideshare operations to protect your interests and stay legally compliant.

Personal Insurance

Personal auto insurance only provides coverage for the personal use of your vehicle. The policy doesn’t cover any commercial use, like when conducting rideshare activities. In fact, you risk cancellation of your personal policy if you don’t have the proper commercial coverage and your insurance company finds out you are using your vehicle for a rideshare business. They often only find out in the event of an accident. It is then too late for you to find the right coverage to mitigate your risks and avoid costly results. 

 

With auto insurance from traditional companies, their standard coverage only covers for personal use. When you’re conducting rideshare commercial driving and an accident happens, you will have to foot that bill for repairs to your vehicle, even if you’re not at fault. If you only have personal insurance coverage, you are at risk as a rideshare driver. 

 

Commercial Insurance

Commercial auto insurance coverage is one option for drivers in the rideshare business. Rideshare drivers with commercial coverage have the necessary protections in the case of an accident, injury or damage. However, commercial auto insurance comes with high rates that most rideshare drivers simply can’t afford. This is not a viable insurance option for the new gig marketplace, like with the rideshare industry. Commercial insurance coverage works best for traditional commercial business use, like with home service providers and large-scale delivery companies. 

 

Rideshare Endorsement Insurance

In response to the demand for rideshare drivers, many traditional insurance companies now offer an endorsement option specific to rideshare drivers. This option is less expensive than commercial auto insurance but offers less protection. The insurance premium is still higher than for personal auto insurance. 

 

Rideshare driving differs from other types of commercial vehicle use in the eyes of the insurance company. Most insurance companies break down coverage depending on the specific activity of the driver. For a parked driver waiting for a ping from a rider, the coverage is different than when the driver transports a rider. In other words, if someone hits you while parked and waiting on a ping, your coverage may not provide the protection you need. Also, endorsement insurance is not available from all companies or in all states. Endorsement insurance is still not a solid solution for rideshare drivers.

 

TNC Insurance

The two most popular TNCs do offer limited insurance coverage. However, like with endorsement insurance plans, coverage is dependent on the phase of the rideshare activity. For example, if you are waiting on a rider versus en route to pick up the rider versus driving the rider, the coverage differs. You might not receive the compensation you need in the event of an accident. On top of that, TNC insurance comes with a deductible of up to $2,500.

 

The insurance coverage offered by TNCs only goes into effect after you’ve submitted the claim to your primary insurance company. If you only have a personal auto insurance policy and not a commercial or endorsement policy, you risk denial of the claim. Plus, the insurance company will likely cancel the policy for a violation of using your vehicle for commercial use without the right insurance coverage. In other words, the TNC insurance only benefits you if you have more than just personal auto insurance coverage, like with a commercial or endorsement policy.

Understanding Your Risks and Rates

The current paradigm of auto insurance quoting factors in a host of considerations, including credit score, age, gender, driving history, marital status and more. Some of these factors are important when underwriting risks for auto insurance policies. However, some elements introduce bias that weighs disproportionately in the quoting process.

 

To make matters worse, rideshare driver rates from traditional insurance companies use the same risk criteria for personal policies and commercial or endorsement policies. But, insurance premiums cost more for commercial or endorsement coverage. 

 

You face a big risk if you don’t have the right insurance coverage for a rideshare business. In fact, the biggest gap in rideshare insurance is when you’re driving to pick up a pax. Neither your TNC or personal policy provides coverage. If you’re at fault in an accident, all that damage comes out of your pocket. Plus, if you have an accident, you face potential lawsuits if you have the wrong insurance coverage. Even with coverage from the TNC, injured parties may sue you for the difference in the insurance payout and expenses from damage or injury. Not only will you face the costs for your own injuries and vehicle damage, but you’re ultimately responsible for passengers and others impacted by an accident. It’s not worth the risk. Instead, look for the best solution to protect you as a rideshare driver. 

 

Even with companies that offer rideshare endorsement coverage, they don’t consider the diversity of rideshare drivers. Instead of weighing risks accurately, they stick to the old model of heavily weighing credit scores to access driver risks. However, many rideshare drivers don’t fit the traditional model and may have compromised credit scores. Yet, these rideshare drivers don’t have a higher risk for insurance coverage.

 

At Buckle, we have found that rideshare drivers treat their vehicles better because they are a revenue-generating asset and need a vehicle to make money. Driver performance gives us the star rating from riders, which is an indicator of how others perceive how the rideshare driver treats their vehicle. We believe rideshare driver performance is an important factor in writing policies that are commercial, personal, and affordable. 

 

The Buckle Difference

Buckle offers rideshare drivers an affordable auto insurance solution that meets the specific needs for your rideshare business and your life. We’re here to offer the protection you need at a price you can afford. We handle everything with one easy solution. A Buckle policy covers for both personal and commercial use of your vehicle at a price lower than the competition. We’re talking about total coverage at better prices just for rideshare drivers!

 

Driver ratings play a significant role in determining Buckle insurance rates. Driver performance data, also known as the star rating in many of the rideshare apps like Uber and Lyft, is the factor we look for to better underwrite rideshare driver insurance policies. Driver performance is a better indicator of risk than credit score, gender or age when writing a policy for rideshare drivers. 

 

Rideshare driving helped launch the gig economy. Because of the innovative nature of rideshare driving, traditional insurance companies haven’t caught up. That’s why Buckle is the best solution for rideshare drivers. Buckle insures rideshare drivers at incredibly low rates. You can get total coverage in a single policy at a lower rate than you’re paying now. Contact Buckle to lower your risks and start saving today.

 

About Buckle

We’re Buckle, and we insure rideshare drivers. We believe better drivers should pay lower prices on auto insurance. We understand the right way to evaluate rideshare drivers by thinking outside of the box. Unlike traditional companies, we figured out that our transitioning economy needs flexible insurance options.

 

Buckle is an auto insurance company built specifically for rideshare drivers. We use information from the rideshare app to offer you total coverage at better prices than the competition. The better you drive the more you save. We’re the first to take a full-spectrum look at how you conduct your business when determining the best coverage options for rideshare drivers. We’re here to create viable options for the gig economy to thrive through new insurance solutions.

 

Total coverage and lower prices all through a single policy - That’s what Buckle offers. We’re not giving it to you, you’ve earned it! Are you ready to see how your driver performance can affect your auto insurance rates? Get a quote today!

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