The reason your personal car insurance doesn't cover you is an age-old exclusion for hauling others for a fee. This has always been excluded. It's just been in the spotlight again because of ride-sharing services like Uber and Lyft and their mobile phone technology.
This issue became very real in 2013 when an Uber driver hit and killed a 6-year-old girl in San Francisco. The driver had only the state minimum auto liability limits of $30,000. The family sued both the driver and Uber. Uber does offer secondary coverage, but the driver must have a primary auto insurance policy in place.
There are a number of insurance companies now offering specific auto insurance coverage for ride sharing risks.
Here are a few tips for rideshare drivers
- Purchase a separate policy with at least a $1,000,000 limit.
- Read any and all agreements so you know what your responsibilities are.
- Keep your vehicle in good working condition.
- Talk to your insurer before signing up and keep things on the up and up.