Considering Participating In A Rideshare Program? Contact Your Insurance Agent First!

The recent populRideshareation growth in Austin has caused a bottleneck on our roadways. As city leaders try to solve our transportation infrastructure issues, residents are researching ways to ease their traffic nightmares.

One of the quickly-expanding options used in other metropolitan areas is rideshare. Rideshare programs allow subscribers to connect with drivers in their area via a mobile app to arrange to be driven to a specific location for a fee. The challenge for these types of programs is whether a Personal Auto insurance policy will provide coverage should there be an accident.

Personal Auto policies specifically exclude losses that occur in a vehicle that is for hire. For hire can mean the exchange of money, gifts, or donations. This means that the Personal Auto policy will not provide coverage if you use your vehicle in a rideshare program. Some rideshare companies are now offering their own insurance policies in response to the Personal Auto insurance exclusion, so you may have coverage options if you choose to participate in such a program.

It is always advisable to contact your insurance agent before entering into any rideshare agreements. Consulting with your insurance agent early in the process can help you anticipate any coverage gaps.

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