If you use your personal vehicle to drive for a rideshare company, such as Uber or Lyft, or to make deliveries for Instacart, Walmart, or even a local restaurant, you should take the time to review your liability insurance policy because you may find that you are not covered in the event of an accident. In fact, as attorney Paul Reed of Reed & Reed points out in a recent episode of Lawyer Podcast, most insurance policies specifically exclude coverage under such circumstances.
Florida’s No-Fault Insurance Law
If you are a resident of Florida, you likely know that Florida is a “no-fault” insurance state, meaning that if you operate a motor vehicle within the state, you are required by law to carry a minimum of $10,000 in Personal Injury Protection (PIP) and Property Damage Liability (PDL) insurance coverage. Under most circumstances, carrying the minimum no-fault insurance coverage will suffice to protect you and your vehicle in the event of an accident, even if you are at fault. If, however, you use your vehicle for commercial purposes, the basic no-fault minimum coverage may not be sufficient. In fact, you may find out too late that your insurance coverage doesn’t cover you at all.
Understanding Exclusions: What Your Insurance Policy Does Not Cover
If you did not read through your entire insurance policy before you purchased your car insurance, you are not alone. The vast majority of people do not read beyond the summary found on the first page of their insurance policy. Unfortunately, however, failing to understand “exclusions” to coverage can leave you uninsured following an accident.
Listen to Paul and Jason discuss this case on the LiveFeedReed podcast
Exclusions in an insurance policy are things that the policy specifically does not cover. If you read through your car insurance policy, you will likely find an exclusion related to commercial use of your vehicle. For example, attorney Reed pointed to language in one auto insurance policy that excludes coverage for “bodily injury or property damage arising out of the use of your insured auto while used to carry persons or property for a charge.” Another example excludes coverage when the vehicle is “used as a public or livery conveyance.” What both examples mean in everyday language is that the policy will not cover property damage or medical bills for an accident that occurs while you are driving for Uber, Walmart, your local pizza restaurant, or for a similar reason.
You can purchase liability insurance that covers you while you are using your vehicle for commercial purposes; however, you must disclose that usage to your insurance company when applying for coverage or when you begin using your vehicle for hire. In fact, most applications for coverage specifically ask you if you plan to use your vehicle for such purposes. Because the additional coverage usually raises the cost of insurance, people often do not tell their insurer when they use the vehicle for commercial purposes. It is imperative to understand that failing to disclose this information to your insurance company leaves you without coverage in an accident.
Won’t Uber/Lyft/Instacart’s Insurance Cover Me?
If you drive for Uber, Lyft, or another large company, you may feel that you can rely on the company’s insurance to cover you. In some cases, that reliance may be justified; however, in other situations you may find yourself liable. While Florida law does require a rideshare company to have at least $1 million in liability coverage for property damage, physical injury, and death when a passenger is in the vehicle, that coverage may not cover you or your vehicle. The law is intended to ensure that passengers or other drivers are protected if a rideshare driver causes or contributes to a collision. As the driver of a rideshare vehicle, you may find yourself without coverage if you are at fault in an accident.
The important takeaway is that if you use your vehicle for commercial purposes, make sure that you have liability insurance that will cover you in the event of an accident. If you have questions or concerns about a car accident, contact the experienced personal injury attorneys at Reed & Reed.