If you have been contemplating a new job as a rideshare driver, whether full-time or part-time, you could be assuming that the last thing you need to budget for is additional car insurance, as this will be automatically be provided by the rideshare company.

Certainly, the company you work for is required to provide insurance both for you as the driver and the passengers you will be transporting in the vehicle. Nonetheless, this does not mean that the auto insurance limit will be sufficient. In fact, you may be surprised to learn that the coverage amount provided when you have a passenger in your vehicle will be vastly different when you are alone in the car, with the latter being significantly lower.

To make sure you are protected at all times, you must purchase commercial car insurance to supplement what is provided by the rideshare company that you work for. 

Why do rideshare drivers require commercial car insurance? 

A typical presumption that some rideshare drivers make when it comes to purchasing car insurance is that their pre-existing personal auto insurance will suffice, but this is untrue. The reality of the matter is that once you start using your vehicle to provide ridesharing services, your vehicle is now deemed a commercial car. As a result, multiple exclusions would limit the effectiveness of personal car insurance.

To make sure that you are not putting yourself at risk, it is in your best interests to consider commercial car insurance. Take note, though, that using your vehicle to provide ridesharing service does not automatically cancel out your personal car insurance. Instead, your personal car insurance will only be relevant when you are using your car for personal needs — for example, running errands, picking your kids from school, and so on. 

Which policies should you include in your commercial car insurance coverage? 

As stated earlier, the policy limits that are prized by the rideshare company's car insurance can be quite low, more so when you are alone in the car. Therefore, to keep your out-of-pocket expenses as minimal as possible, you should hire an auto insurance agent that will not only review the company's policy but will also help you determine which types of coverage would be essential when you take out commercial car insurance. Comprehensive car insurance is always the best policy to consider since it will protect you from physical damage to your car and reimburse you for medical costs while also providing you with roadside assistance when you need it.