Rideshare insurance in McAllen:

Everything You Need to Know

Last Updated: January 14, 2022

Rideshare insurance in McAllen is a type of personal auto insurance that covers drivers using their vehicle as a source of income. It’s also known as “ridesharing coverage” or “driving for hire.” These policies typically cover both the driver and passengers in the event of an accident. In this blog, we will give you everything you need to know about McAllen rideshare insurance, so keep reading!

What is Rideshare Insurance in McAllen?

Rideshare insurance is a type of personal auto insurance that covers drivers using their vehicle as a source of income. This can include driving for Uber, Lyft, or other ridesharing services.

According to AllState, This form of insurance can assist bridge the gap between your vehicle’s commercial and personal uses. As well as protect you from large out-of-pocket expenses.

Though rideshare drivers are not obliged by law to obtain additional coverage. They can do so for further protection against incidents that cause damage or injury to themselves or others.

How Does Rideshare Insurance Work?

Suppose you’re involved in an accident while ridesharing; your regular personal auto insurance will cover the damage to your car and any other vehicles involved in the accident. But that’s not all! It will also provide you with medical expenses for passengers, property damages for pedestrians or other cars on the road, and legal costs if customers face injuries or lawsuits.

 

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Divided Coverage Period of Rideshare Insurance in McAllen

Period 0/Offline: This is the time when you’re not driving for Uber or Lyft, and your car insurance policy is in effect. Furthermore, the driver isn’t using the rideshare app. For example, when you’re not working, you go to the grocery store, pick up your kids from school, and do other activities.

Period 1: You have your ridesharing app open, but you have yet to accept a ride. Although you are theoretically working, you are not yet on the clock. This causes a gap in your insurance coverage, putting you and your vehicle at risk financially if something goes wrong.

Period 2: You’ve turned on your ridesharing app and accepted a ride request, but you haven’t yet picked up your passenger. Even though the insurance covers you during this period, rideshare companies usually only give limited liability coverage.

Period 3: You pick a passenger through the rideshare app. You return to period one status after dropping off your customer. And you are unlikely to qualify for either your insurance or your employer-provided coverage.

Is Ridesharing Covered by my Personal Auto Insurance?

Though rideshare drivers are not obliged by law to obtain additional coverage, they can do so for further protection against incidents that cause damage or injury to themselves or others. However, if you’re a victim in an accident while driving your car and someone wants to blame the incident on Uber/Lyft’s insurance policy, there is a chance your auto insurance will not cover the damage.

Rideshare journeys are usually not covered by personal auto insurance. That’s because your car insurance company has calculated the cost of your policy based on the assumption that you’ll be driving yourself, relatives, and friends. Furthermore,  that you won’t be earning money from private excursions or putting a lot of miles on your car.

As a result, a rideshare driver’s auto policy is unlikely to provide coverage while on a ridesharing journey.

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How much does Rideshare Insurance in McAllen Cost?

The cost of rideshare insurance policies varies depending on the company you choose, your driving history, and other factors. On average, though, expect to pay about $15-$20 per month for coverage.

Rideshare insurance is generally less expensive than commercial insurance. However, it varies enormously from company to company and state to state. Some providers, such as USAA, claim that you may add ridesharing coverage to your insurance for as little as $6 per month, while others, such as State Farm, pay up to 20% of your annual payment.

Top Five Companies Rideshare Insurance in McAllen

Though there are many rideshare insurance companies out there, we’ve compiled a list of the top five providers in the country.

  • Allstate
  • Geico
  • USAA
  • State Farm
  • Liberty Mutual Insurance Company

As you can see, there are many options for rideshare insurance, so it’s essential to do your research and find the policy that best suits your needs.

Conclusion

We hope you learned what you needed to know about ridesharing insurance in McAllen. The information in this blog is equally applicable to other cities throughout Texas. If you want to get FREE quotes and learn more about ridesharing insurance, go to car insurance companies and fill out the form.

Frequently Asked Questions

Q. What if my state does not provide ridesharing insurance?

Consider getting a commercial insurance coverage if ridesharing insurance isn’t available in your state. Commercial insurance is more expensive, but they should provide the coverage you need to keep your finances safe.

Q. Is it necessary for me to inform my auto insurance company that I am an Uber or Lyft driver?

Assume you want your auto insurance coverage to cover you from the beginning to the finish of your workday. In that scenario, you should notify your auto insurance provider that you are a rideshare driver so that you can acquire additional endorsements or a separate policy if needed.

Q. Is it necessary for me to get additional rideshare insurance if I already have personal and employer-provided coverage?

Even with personal insurance and employer-provided insurance, as a rideshare driver, you may be exposed during certain sections of your job. Rideshare insurance fills in the gaps between those two policies, ensuring your safety even while you’re not transporting passengers.

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