Are you considering joining a ride-sharing program like UBER, Lyft, or pizza delivery? We highly recommend that you consult with your auto insurance provider before signing on the dotted line to utilize your own vehicle.
Personal auto insurance only covers your vehicles when they are in personal use. If you are using your vehicle for business purposes, including a ride-sharing program such as UBER or Lyft, you may need to purchase a commercial auto insurance policy. Personal auto insurance policies typically have a list of exclusions which may include “driving for hire”.
Even though you are an independent contractor when driving for a ride-sharing service, some states may require you to have a commercial driver’s license and a commercial insurance policy. Without the proper coverage, some states may prosecute drivers for not having a commercial driver’s license when working for a ride-sharing company. We recommend you check with your states DMV for the actual requirements on commercial driver licenses for ride-sharing.