If Lyft is operating in your city and you’ve ever thought about becoming a driver for them, you may be wondering a few things as you fill out your application: how much will I get paid, how many days a week must I work, do I have to put that pink mustache onmy car? And while all of these questions are valuable (even your mustache inquiries), you should really be wondering what kind of insurance coverage you as a driver need in the event of a rideshare accident. Will this convenient income opportunity become an inconvenient battle with an insurance provider?
Lyft classifies their vehicles as personal because they don’t consider their drivers to be employees, but rather independent contractors. Despite lawsuit efforts to achieve employee status, Lyft drivers have only received an increase in benefits to their contracts. And so, individual drivers must make a decision regarding their auto insurance coverage while keeping in mind that Lyft offers supplementary coverage while in use of their mobile app. This supplementary coverage will pay for losses not covered by the driver’s personal policy.To review this coverage, check out this table.
In a few states throughout the U.S., some insurance providers are giving customers the option to buy tailored rideshare policies. Unlike personal insurance policies, which run the risk of your insurance provider denying a claim or even dropping you as a customer if they discover you’ve been hiring out of your car, a rideshare policy would cover both you and your passengers’ medical and damage expenses in the event of an accident. Use the chart below to see if your state is included and if so, which providers cover Uber, Lyft, or any ride hailing service.
|Discount Type||Discount %|
|Good Credit Discount||84%|
|Good Driver Discount||26%|
|Passive Restraint Discount||40%|
|Seat Belt Use Discount||15%|
|Multiple Policy Discount||25%|
|Roadside Assistance Discount||10%|