Finding the right insurance for Uber and Lyft drivers can be a challenge. I got my start driving for ride-sharing services, Uber and Lyft in March 2015. My vehicle is a Toyota Prius V and I usually drive in the Los Angeles area but I start my drive early from Fontana, a city in San Bernardino county about 45 miles away from L.A.
With my Uber and Lyft apps both in drive-mode, I head out on my way to Los Angeles via the 210 West freeway hoping to get a passenger to get me started. All was fine until a discussion with a passenger enlightened me with a problem with my insurance coverage. The passenger works as a paralegal in Pasadena, CA and he told me that during times I am in driving-mode, while driving and without any ride request, then, I am in danger because my auto insurance would not cover me in case of an accident.
My initial auto insurance was with Ameriprise through my Costco membership. In the beginning, I did not disclose that I am using my vehicle for Uber and Lyft simply because I thought that I would be okay. However, ignorance of the law would not excuse me and I want peace of mind while earning extra income with Uber and Lyft.
The monthly premium I paid Ameriprise was $95 dollars per month. I am concerned that having the right insurance for ride-sharing would cause my auto insurance cost to rise significantly like to $150 or more per month. In July I conducted a research and started calling auto insurance providers to compare rates.
Metromile.com is the first auto insurance company that I contacted to get a quote. Metromile's service is different from traditional auto insurance because they would have a fixed monthly base rate and will add a per mile cost depending on how much you drive. They quoted me around $22.63 per 31 days Base rate and 2.4 cents per mile. I usually drive 200 miles a day and up to 6,000 miles a month for Uber and Lyft.
This amounts to $144 per month (6000 x .024), then, add $22.63 totals to $166.63.
The beauty of the Metromile.com auto insurance service is LOW monthly base rate and if you drive a lot just for Uber and Lyft, then you can easily find the right balance. If you do not drive as much and you Uber and Lyft just the weekends, then the Metromile insurance would be a good fit!
Let us say you drive just a 100 miles a day for 30 days, then you would be paying less than a $100 hundred dollars per month. The downside to Metromile's insurance is if you drive a lot for your own personal use like traveling and out-of-town driving. Imagine, if you'd drive for personal reasons from Los Angeles to San Francisco which is a 400 mile one-way drive then you will have to pay about $20 dollars for that trip.
By knowing the amount of miles you drive for Uber and Lyft plus the miles you intend to drive will help you figure out if Metromile auto insurance is the right choice for you!
In my case, going with Metromile would cost me about $166.63 per month because I drive for Uber and Lyft a lot. Add to that my driving habits in which I enjoy driving for my personal pleasure and relaxation. I visit friends and family all over California and have the intention to drive cross-country to Virginia making Metromile a not so feasible choice, at least not for now.
If you think Metromile.com is the right choice for you, please make sure that you get Comprehensive Insurance if your vehicle is still under financing.
The next insurance company that I got in touch with is Farmers Insurance after reading online that they started to provide auto insurance for ride share drivers. There a lots of Farmers Insurance local agents around where I live in Fontana, CA so I decided to call.
I spoke with Vianey Bobadilla, a local Farmers Insurance agent in Fontana, CA. She explained to me that Farmers now provides insurance for rideshare drivers and it covers Uber and Lyft and other rideshare companies across the board.
My Farmers Auto Insurance for Ride Share quote is a monthly payment of just $110 per month with an initial first month payment of $173, a total of $698. In comparison to Ameriprise, the Farmers Auto Insurance for Ridesharing would cost me $128 dollars more. Of course, it would give me peace of mind with the coverage I need while I am on the road driving with my Uber and Lyft apps in drive-mode.
Compared to Metromile $166 per month (based on my driving miles of 6,000 miles per month), then I would be saving $298 with Farmers Insurance. Finally, I made my decision and switched to Farmers Auto Insurance with Ridesharing as the most practical cost-effective insurance based on the miles I would drive each month.
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