Did you know your auto insurance policy may not cover you for ridesharing (such as Uber, Lyft or Turo)? Even if you purchase insurance coverage directly from Uber or Lyft, you still may not be covered in case of a claim.

Since the beginning of auto insurance, ‘driving for hire’ has been an exclusion built into every personal auto policy. Taxi drivers and other ‘drivers for hire’ have always needed to purchase a commercial auto policy for their business. Here are three commonly believed myths about rideshares and insurance and the truths you need to know if you are a rideshare driver.

Myth: I have personal auto insurance and I purchased insurance through Uber, so I’m covered.

Truth: Your personal auto policy is not designed to cover ridesharing. Uber and other ride-sharing companies typically only provide limited insurance.  It is very likely that you have gaps in coverage where you are not fully covered by either policy.

If you’re a rideshare driver or you’re considering signing up, it’s extremely important to talk to your agent to ensure you have proper coverage for your vehicle.

Myth: I have heard insurance agents require rideshare drivers to have commercial insurance, which is much more expensive than personal auto insurance. I don’t want to have to pay more for insurance.

Truth: Many insurance companies are now providing an add-on for ridesharing (such as Uber or Lyft). There is an additional cost for the coverage. Luckily, it is not as expensive as you might think. Check with your agent to discover the best option for your specific situation.

Myth: As long as I don’t have a claim, it doesn’t matter if I tell my agent that I’m a rideshare driver. It will just create additional costs and more headaches.

Truth: Insurance is a binding contract between you and the insurance company. It is never a good idea to withhold information from your agent or the insurance company. Remember, the entire point of insurance is to cover costs associated with an accident. You cannot reliably predict that you will never have an accident. It’s much better to already have the insurance you need, rather than suddenly owe thousands of dollars because of an accident. If fear of having a higher premium is holding you back, talk to your agent about the various options available. You may be pleasantly surprised at the coverage options you can choose.

If you’re interested in participating in ridesharing, it is very important to contact your agent today to ensure you have proper coverage.