Update 5/16/2014: Über has a sliding scale from no coverage to modest personal coverage (50/100/25) to excellent commercial coverage ($1m liability, $1m uninsured/underinsured, $1,000 comp/collision deductible). These coverages depend on whether the user has the app engaged or not and are no guarantees of coverage.
We all need insurance for our personal vehicles. Some of us need insurance for our business vehicles. We all need to make sure our insurance has uninsured and underinsured (UM/UIM) coverage for if our friends are riding with us. That UM/UIM coverage is a topic for a different post, though.
For those of you who are unfamiliar with these programs or even ridesharing in general, here’s a brief overview:
Ridesharing is an alternative form of fare transportation: drivers with vehicles and records which meet certain criteria register with a program that allows them to accept paying passengers. Über and Lyft users log into their respective app, find a driver with a favorable bio, select that driver, and then meet up.
Some of you who are familiar with insurance are already seeing the major red flag here, but many of you probably don’t see it at all. If you earn money for driving your vehicle, it must be insured as a business vehicle.
If you get into a wreck while driving someone for a fare, even if the total of all of those fares will not qualify for reporting on your taxes, your claim will either be denied or you will be charged for the difference in premium between personal and business rates.
There are some distinct advantages to registering your vehicle for business use
- It allows you to use your car to make money
- It often gives you options for higher limits of auto insurance
- It can put your passengers at ease that everything has been thought of
Endorsing your car insurance with your vehicle for business use in Arizona doesn’t add much cost onto your policy, and it can protect you should something unpredictable happen while driving. If you have any questions about how to do this or what it is, call us today at 520.269.9986 or write to us at email@example.com.