Some people in my neighborhood are offering on our Facebook group to provide rides to the airport for a fee. They’re not alone. More and more people are offering rides for hire.
But some friendly advice: Check your auto insurance if you’re thinking about joining them to earn a little extra money. I have a spoiler alert for you, unless you have a commercial auto policy, there’s no coverage.
The minute you accept payment for a ride, you are technically a taxi or livery service. In many ways, you are far better off by driving for Uber or Lyft. Uber and Lyft cover your vehicle and passengers while they’re in your car.
Every personal auto insurance policy that I’ve seen excludes coverage when you’re providing such service. And that can leave you personally liable for injuries suffered by your riders and the damages to your car or someone else’s.
So, before you decide to earn a little bit of extra money on the side, make sure you know how your insurance would or wouldn’t cover you if you’re in an accident while providing a for-hire ride. That little bit of extra spending money could end up costing you hundreds of thousands of dollars or more.
In short, accepting money for rides, even something as harmless as charging “gas money,” can leave you paying for tens of thousands of dollars in damages and more.
Questions about whether you’re covered when providing paid-for rides in your car? Give me a call at 303.922.1002.
