Independent Contractor Insurance Options

My Decisions

I chose Geico for my rideshare insurance provider.  In Illinois, Geico was a great option for me and my fiance, who is also an Uber driver- sometimes.  The process was easy and reasonably priced for us.  I DO NOT recommend skipping an upgrade to a commercial policy.  Many drivers in forums and such say that they do not bother to inform their insurance and they are willing to take that chance.  In my humble opinion, it’s just not wise.

I can understand if you want to get your feet wet in the business a little bit before adding to your policy, but beyond the first month, just do it.  I once drove a woman who worked for Farmer’s Insurance I believe it was; she said in Illinois it’s just a 10% add.  In fact, when we switched to commercial, we paid less… of course, Geico was happy to get us back after we left them to go to the General a few months prior and we both have excellent driving records.

The General does NOT have any rideshare options (back in August 2016 when we called for inquiry) and we didn’t realize that we didn’t have roadside assistance on our policy when we signed on.  Let me tell you the thing that made me want to leave the General was that we couldn’t add a roadside plan to our policy until the duration of our current policy ended… ridiculous.  The price was nice, but roadside is an important feature to me.

You Need Additional Coverage

Your personal insurance is for personal driving.  As a chauffeur; which is essentially what you become when you work for a rideshare company, you are driving commercially. Personal insurance is not intended to cover driving for commercial purposes either, such as delivery as an independent contractor.  While working app-based jobs like Instacart or Door Dash, you may face the same problems.  So, it’s a good idea to call and ask your insurance provider about those as well.

Rideshare companies have huge policies to cover you while you are on your way to a passenger and while a passenger is in your car.  But, your accident occours while online prior to ride request, your insurance company may fight it.   Sure, you can deny it, but just in case you didn’t know, that would be FRAUD and it is illegal.  Most likely they will still pay out for your claim, but they will drop you like a hot potato.  And your rates will increase.  And you may face charges, landing you with heavy fines, possibly jail time, and a record.

What Rideshare Companies Cover

Gosh, it’s something like a fat Million Dollar Policy… with a $2,500 deductible.  Uber and Lyft in most cases are going to ask you to file the claim first through your auto insurer.  Your insurance will likely deny claims during pick up or transport.  Then pass you back to the rideshare company anyway.  Seriously, it’s just a slowdown.  If you were not heading to or on board with a passenger, the rideshare companies still ask to be notified, even though they aren’t going to do anything at that point.

I highly recommend this crowd-sourced database compiled by The Rideshare Guy.  Not to toot his horn for him or send you away, but he’s done a great job at the legwork already and this is not a “rideshare blog”.  While you’re at it, you should join the Maximum Ridesharing Profits Community HERE.


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