Working as an independent contractor for Uber and Lyft can be rewarding. The extra income can go a long way in a families discretionary income. There are major insurance implications that needs to be addressed and understood before accepting the role as an independent contractor (driver) for Uber and Lyft.
First your personal auto insurance policy may not provide coverage for any accidents that may have incurred. As a result of using your personal vehicle for business purposes. Personal auto insurance policies need to be converted to commercial auto insurance policies.
Second the limits of liability is not enough to cover a major accident. Currently Uber provides coverage up to $1 million dollars if you are transporting passengers and up to $50,000 before you arrive a customer pick up location.
An example, you are driving to the customer pick up location and you are involved in a car accident where there is substantial property damage and bodily injury, and you were found negligent. The damage is estimated at $300,000. The vehicle was used for business purposes it does not fit within the classification of a personal auto, the Uber policy may pay up to $50,000. Who will pay the remaining $250,000?
At this point your personal auto insurance may cancel you Nevada personal automobile insurance because the vehicle is being used outside of the classification of a personal auto.
In Nevada there are very few insurance carriers who will issue commercial auto insurance coverage to provide liver or ride sharing insurance coverage. Speak with your local agent or broker today about ride sharing commercial auto insurance coverage.
Read more at H.A.L.O. Attorneys