Everything has changed now that the whole world is living with the spread of coronavirus, or COVID-19. Car insurance is no exception. And, since a significant number of people have relied on jobs in the rideshare industry for many years now, this segment of the auto insurance industry has been deeply affected. Let’s take a look at the current situation with coronavirus and rideshare insurance.
What is Rideshare Insurance?
The two major rideshare companies, Lyft and Uber, supplement the personal auto insurance of their drivers. Generally, how it works is that when a driver becomes an active driver on the app, the company’s auto insurance coverage begins. There are different phases of this additional coverage, including when a passenger enters and exits the vehicle and when the driver logs off of ridesharing mode.
So, are there any changes to this insurance due to coronavirus? As of this writing, there are not. However, if you are a driver you may still feel like you need some extra coverage during this unprecedented time. It is worth checking around for other options.
State Insurance Laws
You can check with your own state’s department of insurance to see what actions are being taken where you live and work. Some states are helping to ease the financial burden placed on so many during the COVID-19 outbreak. These measures may include state-mandated short-term breaks on premiums and grace periods to catch up on premium payments.
What About Insurance Companies?
Many insurance companies took fairly quick action once the COVID-19 outbreak really took hold. Many wanted to help their customers, rather than lose them. And because there are now fewer cars on the road and drivers are driving way fewer miles, it makes sense that the amount of risk carried by auto insurance companies has gone down. This means that many insurers are passing on savings to their customers.
Should I Change my Rideshare Coverage?
A good rule of thumb is to review your car insurance coverage annually. This is especially true for rideshare drivers and even more true now due to COVID-19. You may be able to lower your costs by increasing your deductibles or decreasing your coverage limits.
If you are no longer driving for Lyft or Uber you may be able to temporarily pause your rideshare coverage also. If you are still rideshare driving, there are other ways to cut costs, such as showing your insurance carrier your decreased mileage for a premium adjustment. Driving fewer miles means you should see some savings.
So, what is the best way to find out if you are overpaying for auto and rideshare insurance? Shop around! You can use the InsuranceWins fast and easy form to start comparing your options. If you’re driving miles have decreased or you are no longer driving for a rideshare (or delivery) company, you can find savings that may help you through the worst impacts of the COVID-19 outbreak.