Uber & Lyft recently started offering rides again in some parts of Alaska. As more people consider driving, either part time or full time, our office is receiving a lot of questions about how a personal auto policy and driving for Uber & Lyft works.
Your auto policy does not cover you for using your car to transport people, food or items for a charge. This means if you are using your vehicle, and charging a fee, for delivery or transportation then you need to talk with your insurance agent.
When you turn on your App & you’re ready to start working, your personal auto policy stops covering you, turn off the App and you have insurance again. You may say “but the company I’m driving for gives me insurance” and this is true – kinda…
The insurance provided by the company typically only covers you once you have agreed to transport – so once you pick up a person or once you are in route for delivery. But what about all that time you’re driving around just waiting for a notice that someone has hired you?
Insurance companies have been working to develop a solution to this problem. In other States, you can add a special coverage to your auto policy that will make sure you don’t have a problem and these options are coming soon to some insurance companies in Alaska.
The coverage will allow you to have insurance as soon as you turn on the App and become available to pick up & drop off. Give your insurance agent a call to talk about your options – before you turn on that App and get behind your wheel!