Rideshare companies like Uber and Lyft give many people an easy way to earn extra money, but the use of a personal vehicle for work purposes could end up costing these people more than they realize.
Personal auto insurance policies cover personal use vehicles, and the discovery of work-related use could lead to denied insurance claims in the event of an injury or accident.
Liabilities of operations
Regardless of what rideshare company you drive for, you face liabilities with bodily injury and property damage from the routine task of driving. These are the same liabilities you face when driving to the store or to the bank, yet the commercial aspect of rideshare services increases the liabilities to include passengers or third-party bystanders. This renders your car a commercial vehicle and the coverages given by your personal policy become invalid.
Consequences of claim denial
The things you would normally count on your insurance to address after a car accident become your personal problem when the insurance denies a claim. Your car may damage the personal property of someone else if you swerve off the road or misjudge a distance. Accidents that lead to bodily injury with your passengers could potentially rack up thousands of dollars in medical bills. A denied insurance claim makes these situations your personal financial responsibility.
Though your rideshare company may carry a small amount of liability coverage on your behalf, this will not adequately address your full liabilities. Questions of being at fault or the concerns of other parties involved can make it more difficult to achieve any accident compensation for yourself or those injured.