Sheri dipped her toe in the sharing economy a couple of weeks ago when she downloaded the Uber app to her phone and arranged for a ride home from work while the car was in the shop. Since it was a non-peak time, the rate was incredibly affordable and it could not have been easier to arrange. We were both excited by her positive experience and the options it provides. I’m also excited to report Texas car insurance companies are finally providing affordable policies for Uber and Lyft drivers, as well as their passengers.
Several companies offer this coverage through their personal car insurance policies. This coverage may be in the form of an optional endorsement to their standard policy or expanded policy language stating this coverage is now included. Currently, only a few car insurance companies offer this coverage, however, I believe most of the major Texas carriers will provide this coverage within the next 12 months.
Prior to these policies being released, network drivers were either:
- Driving under their personal car insurance policies which excluded coverage for commercial uses of a personal vehicle (this was usually the case and may still be with some companies)
- A few actually procured commercial limo or taxi policies (these usually cost much more than traditional personal car insurance policies) but provided complete coverage
Network drivers now have better coverage at a more competitive rate with these new offerings. This means, drivers now have coverage for property damage and liability when driving for their network partner.
- Accident claims won’t be denied because the vehicle is being used for commercial purposes
- Liability for injury to a passenger will be extended if the driver is involved in an accident
The keys for network drivers are to confirm their car insurance company covers their vehicle and passenger if involved in an accident. If your company doesn’t provide this coverage, talk with one that does. In addition, I recommend drivers have higher limits to better protect them if something does go wrong.
Texas minimum requirements for network drivers is 50/100/50. This is slightly more coverage than our state minimum liability limits of 30/60/25, however, I’d recommend a minimum of 100/300/100 or higher (for more on limits see https://wiseinsurancegroup.com/how-much-car-insurance-do-you-need-2/). Keep in mind most black car limo and cab drivers carry $1 million in liability coverage as required by state law.
This is great news for Texas’ Uber, Lyft, and other network drivers, as well as their passengers. I’m thrilled this coverage is available and that I have the opportunity to offer affordable solutions for network drivers. What I’d also like to see is a similar offer from home insurance companies for clients who rent their homes out using HomeWay, FlipKey, Wimdu, and HouseTrip, but for now, I’ll celebrate what I have.
Let me know if I can assist you with your network driving or standard car insurance coverage. If you have a question, comment, or experience you’d like to share, please post it on my Google +, Facebook, or LinkedIn pages. I’d love to hear from you!