Okay. One of the most common questions people ask is, “Do I need insurance?” The answer is no. Should I have insurance? The answer is yes.
Now, what do I mean by that? Obviously, you need insurance to drive. You cannot be accepted with Uber or Lyft if you do not have insurance. But the question is, do I need something specific called Rideshare Insurance or an endorsement?
Let me break it down. Are you covered with Uber and Lyft with their insurance policies? Yes, you are, but only at certain periods. So let’s break it down.
Let’s take it from the beginning. Offline. Offline is you’re just driving around with the family and friends, you’re on your basic State Farm or whatever insurance, Allstate insurance.
That is whatever. Okay. That says if you don’t even exist as a driver. Now, Period One is where it’s tricky. Period One is when you are waiting around in a parking lot or driving around and you do not have a passenger and your apps are on and you are looking for a passenger.
This is where you will not be covered by most insurance companies and Uber and Lyft will not cover for you, okay, for the most part.
Now, where they do cover, is en route, so you get pinged and you’re picking up this X person and whoever at one location. While you’re en route, you’re now covered by Uber and Lyft, insurance immediately kicks in.
And when you get the person in the car and they’re in your car, this is called Period Three. Now, you’re covered by their insurance, and the insurances change depending on the Period Two or Three, there’s more coverage.
Okay, and you can look at the different details on that. I’ll give you guys a link for that. Now, the tricky thing is, should you drive around in Period One or sit around without that rideshare endorsement.
So, rideshare endorsements are insurance companies that are already covering you regularly, and they’re saying, “Hey, we know you’re doing rideshare, we will cover you for that available Period One.”
Now, the tricky thing is a lot of insurance companies are not open to it yet. Some are and more are jumping on. They’re just unfamiliar. This is a new territory for them.
Again, this is a new industry and they’re not sure. And so some insurance companies, if they know that you’re doing rideshare, they will drop you. So you need to look into that, do some research.
Will your insurance company drop you? The other thing you have to factor in is, what is your risk-reward tolerance? If you’re driving only a few hours a week, is this period one worth getting an additional $15, $10, $7 to $20 a month extra on your insurance so that you can be covered with this?
That’s up to you. I’m doing it, but maybe you don’t need to, maybe you’re a type of person that you only wait in parking lots.
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Now, many of us dangerously are driving around during Period One waiting for a hail. So, you’re looking at your phone constantly, which is dangerous and you may need to stop.
And so if you’re that person, you definitely need that insurance on Period One. Now, so this is a tricky thing and it really comes down to risk tolerance and what you are willing to live with. But the thing is it’s always changing because this industry is growing and it’s new.
Instead of being super dated by this video the moment I publish it, I want to show you guys this one web page. So right here, guys. You guys know I really appreciate Harry. I’ve really learned a lot from him, you will learn a lot from him. I used to go to his website all the time, bookmark it, go to it often.
This is the most helpful resource I can point you to. Rideshare insurance actually is for Uber and Lyft because they’re constantly updating. He has his own tab and there’s an Uber accident lawyer that he will recommend.
So if you read through this, it’ll break down the different…these are different other articles, why do I need it and so forth. And it’ll also break down different states and their specific laws.
Now, this is a little dated, it won’t show all the different insurance providers, like Geico or whoever but it’s a really good start to go. So to sum up, you don’t need it, but you probably should use it.
If you’re super careful and you don’t drive a lot…again, the more you drive, the more opportunity you have to make a mistake or get hit. And again, you may say, “This is why I’m a really careful driver.”
But other people aren’t. And so maybe they hit you and you couldn’t do anything about it. So you have to weigh that out. And you also need to look in and do some research.
Will your insurance company will drop you or not? So for me, the extra $10 bucks I’m spending a month is worth not worrying about that. All right, so that’s insurance in a nutshell.
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