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Understanding Payment Differences for Rideshare Auto Insurance Policies

March 31, 2020

As a rideshare driver, your auto insurance payments are part of your business expenses. This means that you make less money if you pay too much for rideshare auto insurance.

At Buckle, we aim to simplify auto insurance coverage for rideshare drivers. Unlike most other coverage options where rideshare insurance is an add-on expense, we provide coverage for all your driving needs in one easy policy.

What is an Auto Insurance Premium?

An auto insurance premium is the total amount of money you pay per policy term (6 months) for auto insurance coverage. Each company calculates their premiums based on a specific set of criteria they use to determine driver risks. Each company’s calculation differs, which means your rate will vary with each quote you request from different insurance companies.

What most insurers look at to determine what you pay:

  • Credit score
  • Accident history
  • Age
  • Vehicle type and year
  • Vehicle usage
  • Driving experience
  • Annual mileage
  • Claim history
  • Type of insurance coverage selected

At Buckle, we use some of these criteria, like the type of coverage you select, to set premiums. However, we see risks differently than normal auto insurance companies. We understand that there are barriers to a fair price when a credit score is the primary indicator of insurance rates.

Instead, we look at what matters most for rideshare drivers. Driving is your business, which means the ratings from the rideshare app offers a more reliable indicator of risk than credit score. That’s why we link to your rideshare app to determine your insurance rates.

Full Term Payments Versus Installment Payments

Some people choose to pay their full insurance premium up front for the six months. However, not everyone has the budget to pay a large amount up front. Therefore, most auto insurance companies allow for installment payments.

Installment options vary by insurance company, but we keep it simple with a monthly installment plan unless you decide to pay in full up front.

Keep in mind that a processing fee for installment payments may apply. This means you pay more in total over the course of the year to have your payments broken out. This is because it is more work for your auto insurance company to process the payments each month versus once per policy period.

Each person has different needs as to what is best for paying their bills. If you pay in full up front for each policy period, then you don’t need to worry about making a payment each month and you can avoid the extra processing fees.  Some people plan payment of their insurance bill around when they receive a tax refund or holiday bonus. If you pay in full up front or if you pay in advance on an installment plan, you don’t have to worry about late fees or gaps in your coverage due to missed payments. Choose the right payment plan for your comfort and budget.

Why Do I Need a Down Payment for Insurance Coverage?

For your insurance coverage to start, you must make your first premium payment. Insurance companies require a minimum down payment to start your coverage. Even if you go through all the steps to switch insurance providers, your policy does not start until you make that first payment.

The down payment enables us to protect you on day one from the time you complete the application and make payment. That means if you have an accident, even on your first day of coverage, your insurance company must review the claim for potential payment. This means your insurance company needs your financial commitment before coverage starts. This is called the "consideration" portion of the contract. In exchange for the insured's premium, we will promise to pay all valid claims.

Most auto insurance companies don’t require full payment of the term premium to begin your coverage. A down payment is an affordable and easy way to start your policy and get the protection you need without the burden of a full term’s premium.

Selecting the Right Auto Insurance for Your Rideshare Coverage

Understanding what you pay for personal auto insurance is complicated enough. When you add in the need for rideshare coverage, the confusion increases. Premiums vary for the different types of rideshare insurance. For example, personal insurance does not provide coverage for commercial use, except some companies sell high-priced riders for a limited amount of commercial driving, and the traditional commercial auto insurance providers charge high premiums for rideshare driving (typically under their limo and taxi programs).

Buckle makes rideshare auto insurance coverage easy to understand. Our quote includes all the coverage you need for both personal and rideshare driving. We only offer auto insurance to rideshare drivers, which helps keep our rates low. We take the complexity out of auto insurance coverage so that you can focus on your job as a rideshare driver.

Get a Free Quote Today!

Don’t take our word for it. Compare rates for rideshare auto insurance coverage. We offer an easy quote process online for your convenience. There’s zero commitment to sign up when you request a quote. However, we feel confident that when you see our low rates, you’ll want to join the many other rideshare drivers that trust Buckle for their coverage.

Our mission is to support rideshare drivers with an innovative auto insurance solution. 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 new gig economy needs flexible insurance options.

Buckle is an auto insurance company built specifically for rideshare drivers. We use your driver ratings to set your insurance rates. The better you drive the more you save. With Buckle, you get total coverage at a lower price in a single policy! Are you ready to take the confusion out of rideshare auto insurance rates? Get a quote today!

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