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The Deal: The Keys to Understanding Rideshare Auto Insurance

Buckle Team
March 31, 2020

How do you know if you have the coverage you need as a rideshare driver? It isn’t easy! Every penny you spend on rideshare operational costs cuts into your income. That includes auto insurance. You want the best coverage for the lowest price, with no gaps in coverage. Yet, skimping on auto insurance may cost you more in the long run if you don’t have the right coverage when an accident or theft occurs.

At Buckle, we aim to make rideshare auto insurance easy to understand. We offer one policy for both your personal and rideshare use so you don’t have to wonder if or when you’re covered.

What Coverage Do Rideshare Drivers Need?

As a rideshare driver, you’re required to carry auto insurance by the rideshare companies like Uber and Lyft. The insurance coverage offered by these companies only includes limited coverage, and you must pay a deductible ranging from $1,000 to $2,500 for each claim.

Most traditional insurance companies do not allow your personal auto insurance policy to cover rideshare driving. This means if you do not inform your insurance company that you are a rideshare driver and then file a claim as a rideshare driver, your insurance policy may deny the claim and cancel your coverage.

To remain insured, you must acquire rideshare insurance coverage. Some insurance companies offer an endorsement plan for rideshare drivers. This is an add-on to your personal insurance policy. The endorsement usually includes restrictions for coverage based on your current rideshare activity. For example, the coverage is different when parked and waiting to book a rider and when actively driving a rider to their destination. This means you may have gaps in your coverage based on vehicle use at any given moment.

A commercial policy is another option for rideshare drivers. While commercial auto insurance policies provide all the coverage you’ll need, they cost a fortune. This isn’t a viable option for most rideshare drivers.

This is where Buckle comes in. We saw the dilemma rideshare drivers faced trying to find the right insurance coverage required by both the law and rideshare companies. We believe this new innovative gig economy needs innovative solutions. We designed Buckle exclusively for rideshare drivers. Our policies include coverage for both personal and rideshare driving use of your vehicle at one low price.

How to Compare Rideshare Auto Insurance Policies

1 – Consider the Coverage

When comparing auto insurance policies always consider the specific coverage offered. As we reviewed above, not all rideshare coverage offers the protection you need. Identify the gaps that may leave you financially responsible, like if an accident occurs while parked and waiting for a rider. Look for a policy that provides consistent coverage. The biggest potential gap is in Period 1, when you are waiting for a passenger with your app on.

2 – Determine the Deductible

The lower your deductible, the higher your insurance premium. While lower monthly premium payments sound appealing, you don’t want to be unable to repair your vehicle because you can’t cover the cost of the deductible. As a rideshare driver, your car is your business. Find the coverage that gets you back on the road and working.

3 – Understand the Premium

Some traditional insurance companies quote competitive prices for rideshare insurance. However, the rideshare endorsement may not include the premium amount for your personal auto insurance policy. You can’t have a rideshare endorsement policy without a personal policy from the same company. An endorsement is not a stand alone policy. An endorsement adds, changes, removes or excludes coverage within the policy or premium. Endorsements change the terms of an issued policy. Ensure the quote you see includes all the coverage you need. Buckle makes premiums easy by combining your coverage into one policy at one price.

How Are Rideshare Driver Auto Insurance Premiums Determined?

For traditional insurance companies, many factors go into setting your premium. Credit scores often heavily influence insurance rates. Also, driving history, age, type of vehicle, specific coverage and more are considered.

At Buckle, we understand that rideshare drivers differ from other drivers. Your income depends on how well you drive and the level of service you offer. This means the rider ratings in the rideshare app reflect your risk as a driver. Therefore, we weigh your ratings as a major determinant of your premium. The better the ratings, the lower the rate.

How to Save On Rideshare Auto Insurance

As we discussed, many factors determine your auto insurance premium. However, the choices you make influence your rate. First, the type of coverage you select and your deductible influence your premiums. At Buckle, we offer multiple coverage options. You determine the right insurance for your budget.

Also, good driving helps lower your rates. Improving your driver ratings is the best way to save on auto insurance with Buckle. This isn’t the case with traditional insurance companies where your credit score may greatly influence your rate.

Also, safe driving helps save you money. With any insurance company traffic tickets and accidents influence insurance premiums. When you drive better, you save.

Another way to save is by paying your auto insurance full term instead of monthly. Most auto insurance companies tack on a processing fee for monthly payments to cover the additional administrative work. Plus, with full term payments, you won’t have to worry about late fees or lost coverage. In the end, you save more.

Buckle Makes Rideshare Auto Insurance Easy

At Buckle, we aim to make auto insurance easy to understand for rideshare drivers. Our goal is for you to have the coverage you need at a price you can afford. We make this possible by only offering auto insurance for rideshare drivers.

We’re interested in developing a relationship with rideshare drivers based on trust and integrity. We want you to understand your coverage while making the process simple to obtain and use your insurance.

Start saving today with Buckle. Request a quote to see how your top driver ratings produce lower auto insurance rates.

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