Your car insurance can be an important safety net if you are ever in an accident. However, one driver in
Texasrecently learned that car insurance policies can be more complicated than simply paying to repair any damages.
Drivers who use their vehicle for
rideshare services like Uberhave to pay attention to what their policy does and does not cover.
KHOU, a woman working as a contractor recently had an accident while making a delivery. She ended up with a $3,000 repair bill, and she will have to pay it on her own due to a car insurance mistake.
Details of the accident
Terrina Sheppard was working as a courier for Texas hospitals in a contractor role. Like many drivers working for Lyft, Uber, DoorDash, and other rideshare and delivery services, Sheppard was using her personal vehicle.
While driving for work, Sheppard found herself caught in a storm, and her vehicle hydroplaned. Her vehicle collided with the guardrail, and she had significant damage to her car's front and rear. Sheppard was thankfully okay, but her vehicle required about $3,000 in repairs.
Unfortunately for Sheppard, things did not get easier after her accident. While she expected her insurance would cover the damages, her claim was denied.
Why was her car insurance claim denied?
Sheppard's insurer denied her claim because of a car insurance mistake, and it might be quite a common mistake too. Even though Sheppard works as a courier, her car insurance was only intended for personal driving.
Insurance providers need to know if a vehicle is being driven for a job, and if they are, a driver may need business insurance. Uber and Lyft drivers
may need rideshare insuranceto cover their driving.
Because she is a contractor, Sheppard did not think that she needed to have business insurance on her policy. Other rideshare and delivery drivers have encountered similar problems in the past.
Avoid making a mistake with your car insurance if you use your car for work
This is just one of many examples of why you should always be
honest with your insurance provider.
There are consequences for not providing factual information when signing up for car insurance. However, there can also be consequences for forgetting to give insurers important details.
If you are driving for a rideshare service or doing other contract driving work like Terrina Sheppard, it is important to tell your provider about your work. You can then add business insurance to your coverage.
Business insurance typically will add about $200 a year to your insurance fees, but it is completely worth it. If Sheppard had known that she needed this, then her claim may not have been rejected.
Working as a gig driver offers a lot of benefits both for those who do it full-time and those who use it as a side gig. Driving on your own schedule and being able to work with the car you already have can make it a convenient and profitable option.
However, if you are going to drive for Lyft, DoorDash, Uber, or any other service, be aware that business insurance may be necessary. Business insurance can increase the cost of your insurance, but there are ways to find cheaper plans.
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Signing up for Jerry takes only 45 seconds, and it is as easy as answering a few questions. Once you sign up, Jerry can help you find cheap car insurance.