By Victoria Ostrosky
San Francisco was an amazing city! The cool, moist fog that rolled in from the Bay during the night was soon burned off by the sun, and the winding and hilly streets had been a welcome change from Rebecca’s normal day in her small town back in the Florida Panhandle.
As a 10-year local of San Francisco, her friend Laura had encouraged Rebecca to utilize Uber during her stay, and it was quite the new experience. The driver who picked her up was prompt and friendly, and his car was clean. Rebecca, being a curious person, asked James, her Uber driver, how ride-sharing worked.
“Well,” answered James, “Uber had to run a background check on me, and my car had to meet certain requirements too. And then I had to get insurance.”
Rebecca kept thinking about how interesting it all was and wondered now, three years later, if her auto policy would cover her if she decided to be an Uber driver or provide food delivery during COVID-19. There were many opportunities to make some extra money right now.
So, she called her friend and agent, Audrey.
“Hey, Audrey, I have a question for you,” said Rebecca.
Audrey smiled, knowing that whenever Rebecca called it was going to be an interesting conversation. “OK, shoot! What’s on your mind today?”
“You know all about Uber, right? And what about food delivery like Grubhub, DoorDash and GoPuff?” Rebecca asked.
“Yes, I do,” answered Audrey. “And I bet you’re wondering whether your auto policy would cover you, right?”
“Ha, ha! You know me pretty well, don’t you?” laughed Rebecca.
Audrey explained that there were basically two types of insurance policies needed for ride-sharing such as Uber or Lyft. When you come on board with Uber, one of the requirements is that you obtain insurance with them with high liability limits and high deductibles. But that policy only covers you while you have a paying passenger in your car.
You will also need a ride-sharing endorsement on your personal auto policy for those times that you don’t have a paying passenger in your car. On a similar subject, when it comes to food and medicine delivery, some auto carriers are currently making allowances during the pandemic, extending or modifying policy terms to give coverage for temporary delivery use. This may affect your premium, but the key is to let your agent know so you have the correct risk reflected on your policy in the event of a claim.
When it comes to your personal auto policy, we recommend carrying Bodily Injury limits of no less than 100/300, since this is your asset protector, with matching Uninsured/Underinsured Motorist limits, stacked. PIP (Personal Injury Protection) is mandated by Florida statute. Medical Payments are optional but recommended as well since it covers not just you, but passengers in your car. If you want physical damage coverage on your vehicle, you’ll need Comprehensive and Collision. Carriers offer other options such as rental, road-side assistance, diminishing deductibles and credits to lower your premium.
Audrey ended the conversation with some sage advice. She mentioned that sometimes people try to ‘skate’ on insurance and might think they don’t have to tell their personal auto insurance agent that they are now ride-sharing or delivering food or medicine. Not informing their agent, and not having the correct coverage can result in a denied claim, or worse.
“It’s always best to play by the rules when it comes to insurance,” cautioned Audrey.
Insurance Zone, owned by Joe and Lea Capers, is a full service commercial and personal lines insurance agency serving Destin, Miramar Beach, Niceville, Freeport, Santa Rosa Beach (30A) and Inlet Beach. Visit their Video Library on www.ins-zone.com and watch several informative videos including ‘Auto Insurance Made Easy,’ or call 850.424.6979. Victoria Ostrosky, author of this article, is a Personal Lines and Life Agent/CSR with IZ.
