{"id":7375,"date":"2022-04-08T17:00:52","date_gmt":"2022-04-08T17:00:52","guid":{"rendered":"https:\/\/veloxinsurance.com\/?p=7375"},"modified":"2023-10-31T21:34:51","modified_gmt":"2023-10-31T21:34:51","slug":"commercial-insurance-for-rideshare-drivers","status":"publish","type":"post","link":"https:\/\/veloxinsurance.com\/blog\/commercial-insurance-for-rideshare-drivers\/","title":{"rendered":"Do Rideshare Drivers in Georgia Need Commercial Car Insurance?"},"content":{"rendered":"\n<p>Yes, they do. Whether you work for a rideshare company on the side or as your main job, you may have wondered if there is <a href=\"https:\/\/veloxinsurance.com\/commercial-auto\/\" target=\"_blank\" rel=\"noreferrer noopener\">commercial auto insurance<\/a> for rideshare drivers, and if so, do you need it?&nbsp;<\/p>\n\n\n\n<p>This article will go through the basics of commercial car insurance for rideshare drivers, including what commercial auto insurance is, how rideshare companies insure their drivers, and whether commercial insurance is a good idea for rideshare drivers.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-ridesharing\">What Is Ridesharing?&nbsp;<\/h2>\n\n\n\n<p>Ridesharing is a business model where passengers can directly request rides from drivers working for a particular rideshare company, also known as a transportation network company (TNC). Usually, passengers and drivers communicate through an app where both passengers and drivers can manage payments, rate each other, and track each other\u2019s locations. Two of the most well-known rideshare companies in North America are Uber and Lyft.&nbsp;<\/p>\n\n\n\n<p>Unlike traditional taxi and livery services, rideshare drivers don\u2019t need a special license and own their own vehicles. And while Georgia rideshare drivers do need to meet certain vehicle requirements and pass a criminal background check, they don\u2019t need the intense certifications of taxi and limousine drivers.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-does-my-personal-auto-insurance-policy-cover-ridesharing-in-georgia\">Does My Personal Auto Insurance Policy Cover Ridesharing in Georgia?&nbsp;<\/h2>\n\n\n\n<p>No. Your personal insurance policy only covers <a href=\"https:\/\/veloxinsurance.com\/what-is-the-difference-between-commercial-and-personal-auto-insurance\/\" target=\"_blank\" rel=\"noreferrer noopener\">personal use<\/a> of your car. Here, \u201cpersonal use\u201d means that your car isn\u2019t being used for hire or for business. Examples of non-personal use include:&nbsp;<\/p>\n\n\n\n<ul>\n<li>Transporting people for a fee (such as through Uber and Lyft)&nbsp;<\/li>\n\n\n\n<li>Transporting goods for a fee (including Uber Eats, DoorDash, and similar services)&nbsp;<\/li>\n\n\n\n<li>Hauling significant tools and equipment to conduct your work (including TaskRabbit, Thumbtack, and similar services)&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>If you use your own car for any of these activities, then you\u2019ll need commercial insurance to ensure that you\u2019re properly protected.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><picture><source srcset=\"https:\/\/veloxinsurance.com\/blog\/wp-content\/uploads\/sites\/3\/2023\/08\/shutterstock_2077111024-1.webp 730w,https:\/\/veloxinsurance.com\/blog\/wp-content\/uploads\/sites\/3\/2023\/08\/shutterstock_2077111024-1-300x171.webp 300w,https:\/\/veloxinsurance.com\/blog\/wp-content\/uploads\/sites\/3\/2023\/08\/shutterstock_2077111024-1-281x160.webp 281w,https:\/\/veloxinsurance.com\/blog\/wp-content\/uploads\/sites\/3\/2023\/08\/shutterstock_2077111024-1-563x320.webp 563w,https:\/\/veloxinsurance.com\/blog\/wp-content\/uploads\/sites\/3\/2023\/08\/shutterstock_2077111024-1-246x140.webp 246w\" sizes=\"(max-width: 730px) 100vw, 730px\" type=\"image\/webp\"><img src=\"https:\/\/veloxinsurance.com\/blog\/wp-content\/uploads\/sites\/3\/2023\/08\/shutterstock_2077111024-1.webp\" height=\"415\" width=\"730\" srcset=\"https:\/\/veloxinsurance.com\/blog\/wp-content\/uploads\/sites\/3\/2023\/08\/shutterstock_2077111024-1.webp 730w, https:\/\/veloxinsurance.com\/blog\/wp-content\/uploads\/sites\/3\/2023\/08\/shutterstock_2077111024-1-300x171.webp 300w, https:\/\/veloxinsurance.com\/blog\/wp-content\/uploads\/sites\/3\/2023\/08\/shutterstock_2077111024-1-281x160.webp 281w, https:\/\/veloxinsurance.com\/blog\/wp-content\/uploads\/sites\/3\/2023\/08\/shutterstock_2077111024-1-563x320.webp 563w, https:\/\/veloxinsurance.com\/blog\/wp-content\/uploads\/sites\/3\/2023\/08\/shutterstock_2077111024-1-246x140.webp 246w\" sizes=\"(max-width: 730px) 100vw, 730px\" class=\"wp-image-8776 sp-no-webp\" alt=\"Male rideshare driver standing out front of car.\"decoding=\"async\" loading=\"lazy\"  > <\/picture><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-do-rideshare-companies-insure-their-drivers\">Do Rideshare Companies Insure Their Drivers?&nbsp;<\/h2>\n\n\n\n<p>Uber, Lyft, and other reputable rideshare companies provide some insurance coverage while you\u2019re logged into the app and accepting passengers. Here is how Uber and Lyft structure their insurance coverage in Georgia:&nbsp;<\/p>\n\n\n\n<ul>\n<li><strong>Offline or the driver app is off<\/strong>&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul>\n<li>No coverage&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul>\n<li><strong>Available or waiting for a ride request<\/strong>&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul>\n<li>$50,000 in bodily injury liability (per person)&nbsp;<\/li>\n\n\n\n<li>$100,000 in bodily injury liability (per accident)&nbsp;<\/li>\n\n\n\n<li>$25,000 in property damage liability&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul>\n<li><strong>During trips and on your way to pick up passengers<\/strong>&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul>\n<li>$1,000,000 in third-party liability&nbsp;<\/li>\n\n\n\n<li><a href=\"https:\/\/veloxinsurance.com\/why-do-you-need-underinsured-and-uninsured-motorist-insurance\/\" target=\"_blank\" rel=\"noreferrer noopener\">Uninsured\/underinsured<\/a> motorist coverage and\/or first-party injury coverage (PIP\/MedPay)&nbsp;<\/li>\n\n\n\n<li>Collision and comprehensive coverage up to the value of your car ($2,500 deductible)&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>Keep in mind that rideshare companies and your auto insurance company may have different views of what it means to be \u201con duty\u201d as a rideshare driver. For example, if you\u2019re driving from your home to the airport to start picking up passengers, your trip to the airport won\u2019t be insured by the rideshare company until you sign into the app. At the same time, your auto insurance may not cover you while you\u2019re on your way to the job. This leaves you and your car in a legal gray area if you\u2019re involved in an accident on your way to the airport. This is where commercial insurance for rideshare drivers can help.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-why-do-rideshare-drivers-need-commercial-vehicle-insurance\">Why Do Rideshare Drivers Need Commercial Vehicle Insurance?&nbsp;<\/h2>\n\n\n\n<p>While rideshare companies offer insurance for on-duty drivers, coverage is limited to certain amounts and certain situations. Consider these scenarios:&nbsp;<\/p>\n\n\n\n<ul>\n<li>You\u2019re driving to a particular part of town where you know you can get good business. Since you don\u2019t want to start accepting rides until you get there, you stay signed out of your rideshare app during the trip.&nbsp;<\/li>\n\n\n\n<li>You\u2019re in the middle of a ride when you drive into an area with no cellular signal, or your phone runs out of battery. From the rideshare company\u2019s perspective, you\u2019re not signed into the app and therefore aren\u2019t covered by the company\u2019s insurance.&nbsp;<\/li>\n\n\n\n<li>While on duty, you\u2019re at fault for an accident that exceeds what your rideshare company covers.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>In all three cases, you\u2019re in an insurance gray zone. On the one hand, you\u2019re involved in <a href=\"https:\/\/veloxinsurance.com\/what-types-of-cars-need-commercial-auto-insurance\/\" target=\"_blank\" rel=\"noreferrer noopener\">business activities<\/a> that your personal auto insurance company won\u2019t cover. On the other hand, the rideshare company\u2019s insurance won\u2019t protect you either. If you\u2019re involved in an accident, you can suddenly find yourself on the hook for hundreds or even thousands of dollars. And if either insurance policy does not cover you, you can even be charged for driving without insurance in Georgia, which means steep fines and a suspended license for up to six months. You may even be required to file an SR-22 certificate of financial responsibility before getting your <a href=\"https:\/\/dds.georgia.gov\/no-proof-insurance-multiple\" target=\"_blank\" rel=\"noreferrer noopener\">license back<\/a>.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-does-commercial-car-insurance-in-georgia-for-rideshare-drivers-have-better-coverage\">Does Commercial Car Insurance in Georgia for Rideshare Drivers Have Better Coverage?&nbsp;<\/h2>\n\n\n\n<p>A big advantage of commercial insurance for rideshare drivers is that it can provide better coverage for your car, especially when it comes to <a href=\"https:\/\/veloxinsurance.com\/comprehensive-vs-collision-auto-insurance\/\" target=\"_blank\" rel=\"noreferrer noopener\">collision and comprehensive<\/a> coverage.&nbsp;<\/p>\n\n\n\n<p>While Uber\u2019s and Lyft&#8217;s insurance includes collision and comprehensive coverage, it\u2019s quite limited, even when you\u2019re actively transporting passengers. First, the deductible for this coverage is $2,500. Remember that an insurance deductible is an amount you need to pay towards repairing your car before the insurance company starts contributing. So, if you\u2019re involved in an accident that causes $3,000 in damages to your car, the insurance company used by Uber and Lyft will only reimburse you for $500 \u2014 you would need to pay the remaining $2,500 yourself.&nbsp;<\/p>\n\n\n\n<p>With your own commercial insurance for rideshare drivers, you\u2019re free to change your deductible based on your needs and financial situation.&nbsp;<\/p>\n\n\n\n<p>Another disadvantage of rideshare company insurance is that it doesn\u2019t include rental car reimbursement. This means that if your car needs to be repaired for a few days, you\u2019ll need to pay for your own alternative transportation. Not only is this a hardship if you don\u2019t live near public transportation, but it\u2019s also a major income hit for rideshare drivers.&nbsp;<\/p>\n\n\n\n<p>On the other hand, commercial insurance for rideshare drivers can provide much more meaningful coverage, including rental car reimbursement and towing services.&nbsp;<\/p>\n\n\n\r\n<div class=\"c-section\" id=\"get-callout-block_de45f21b3e7dd60df2487eeb2761da73\">\r\n        <div class=\"c-get-callout\">\r\n                            <h2 class=\"c-section__title c-section__title--blue\">Get Out of the Gray Area in Georgia with Commercial Auto Insurance for Rideshare Drivers <\/h2>\r\n                                        <div class=\"o-component s-cms-content s-cms-content--center\">\r\n                    <p>As a rideshare driver, you\u2019re constantly toeing the line between personal and professional use of your car. And if you\u2019re involved in an accident, you might easily find that neither your personal auto insurance nor the rideshare company\u2019s insurance is willing to cover <span class=\"white-space\">you \u2014 leaving<\/span> you to pay the damages. That\u2019s why so many people in Georgia turn to Velox Insurance for affordable commercial car insurance for rideshare drivers. All it takes is a few minutes for an online quote for\u00a0<button class=\"js-quote-modal-button\"><span>commercial auto insurance<\/span><\/button>, a quick phone call to\u00a0<a href=\"tel:1-770-293-0623\">770-293-0623<\/a>\u00a0or you can visit one of\u00a0<a href=\"https:\/\/locations.veloxinsurance.com\/\">our offices<\/a>\u00a0in person.<\/p>\n                    \r\n                <\/div>\r\n                                                            <ul class=\"o-component o-list-bare c-get-callout__list\">\r\n                                                                                                                            <li class=\"o-list-bare__item c-get-callout__item\">\r\n                                <button class=\"c-get-callout__link js-quote-modal-button\" aria-expanded=\"false\" aria-controls=\"modalQuote\">\r\n                                    <img decoding=\"async\" class=\"c-get-callout__img\" loading=\"lazy\" src=\"https:\/\/veloxinsurance.com\/blog\/wp-content\/uploads\/sites\/3\/2023\/06\/Group-625427.svg\" alt=\"Computer screen.\" width=\"80\" height=\"80\" aria-hidden=\"true\">\r\n                                        <div class=\"c-get-callout__text\">Quote online<\/div>\r\n                                    <\/button>\r\n                            <\/li>\r\n                                                                                                                                                        <li class=\"o-list-bare__item c-get-callout__item\">\r\n                                <a class=\"c-get-callout__link\" href=\"tel:1-855-468-3569\">\r\n                                    <img decoding=\"async\" class=\"c-get-callout__img\" loading=\"lazy\" src=\"https:\/\/veloxinsurance.com\/blog\/wp-content\/uploads\/sites\/3\/2023\/06\/Group-625577.svg\" alt=\"Hand holding a phone.\" width=\"80\" height=\"80\" aria-hidden=\"true\">\r\n                                    <div class=\"c-get-callout__text\">Over the phone<\/div>\r\n                                <\/a>\r\n                            <\/li>\r\n                                                                                                                                                            <li class=\"o-list-bare__item c-get-callout__item\">\r\n                                <a class=\"c-get-callout__link\" href=\"https:\/\/locations.veloxinsurance.com\/\">\r\n                                    <img decoding=\"async\" class=\"c-get-callout__img\" loading=\"lazy\" src=\"https:\/\/veloxinsurance.com\/blog\/wp-content\/uploads\/sites\/3\/2023\/06\/Group-625579.svg\" alt=\"Two hands approaching.\" width=\"80\" height=\"80\" aria-hidden=\"true\">\r\n                                    <div class=\"c-get-callout__text\">Visit us<\/div>\r\n                                <\/a>\r\n                            <\/li>\r\n                                                                                                    <\/ul>\r\n                                    <\/div>\r\n<\/div>\r\n","protected":false},"excerpt":{"rendered":"<p>Yes, they do. Whether you work for a rideshare company on the side or as your main job, you may have wondered if there is commercial auto insurance for rideshare drivers, and if so, do you need it?&nbsp; This article will go through the basics of commercial car insurance for rideshare drivers, including what commercial [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":8625,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[45],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/veloxinsurance.com\/blog\/wp-json\/wp\/v2\/posts\/7375"}],"collection":[{"href":"https:\/\/veloxinsurance.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/veloxinsurance.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/veloxinsurance.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/veloxinsurance.com\/blog\/wp-json\/wp\/v2\/comments?post=7375"}],"version-history":[{"count":6,"href":"https:\/\/veloxinsurance.com\/blog\/wp-json\/wp\/v2\/posts\/7375\/revisions"}],"predecessor-version":[{"id":9924,"href":"https:\/\/veloxinsurance.com\/blog\/wp-json\/wp\/v2\/posts\/7375\/revisions\/9924"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/veloxinsurance.com\/blog\/wp-json\/wp\/v2\/media\/8625"}],"wp:attachment":[{"href":"https:\/\/veloxinsurance.com\/blog\/wp-json\/wp\/v2\/media?parent=7375"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/veloxinsurance.com\/blog\/wp-json\/wp\/v2\/categories?post=7375"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/veloxinsurance.com\/blog\/wp-json\/wp\/v2\/tags?post=7375"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}