Simply by using an application on your smartphone, people in need of a ride can arrange for an Uber car to pick them up, often not having to wait very long for their ride. Not only has this made Uber an affordable option for people in need of a ride, but it has also become a popular side job for its drivers, especially since most drivers are local drivers and use their own vehicles, which also saves them money.

However, this leaves many people wondering how auto insurance works when using your own car to run an Uber business.

When you drive for Uber, or other similar companies, it is important to know that auto insurance policies are typically only written for personal coverage, which means that your vehicle will include an exclusion when driving for hire. This may require you to purchase a supplemental commercial insurance policy in order to ensure you have the proper coverage.

Also, Uber does provide some coverage for drivers, as well as liability coverage that protects your passengers and others. So, while the Uber app is on, you, the driver, will be protected. For your passengers, the Uber liability insurance will cover them from the moment they step into your vehicle, up until they get out.

While service companies, such as Uber, typically have huge liability policies that will cover claims that your personal auto insurance would not cover, however, the you should know that these policies may not cover damage to your car, making it likely that you will also need a solid personal auto insurance policy.

Before making the decision to work for a business like Uber, and transporting passengers, be sure to review your auto insurance policy with your insurance agent to better understand what your insurance needs will be for your business.

Contact Brazelton Insurance Group for more information or questions about your insurance needs today.