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The Dark Side of On Demand Ridesharing in Woodbridge

Tips for buying a used car in Woodbridge - Airport Car Dealership Virginia

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The Dark Side of On Demand Ridesharing,  Fredericksburg, Va, used car in Virginia

The Dark Side of On Demand Ridesharing,  Woodbridge, Va

 

Rideshare companies like Uber and Lyft are incredibly popular in the D.C. metro area because of their convenience. More drivers walking into Buy Here Pay Here dealerships are contemplating becoming part of the rideshare wave as it allows them to make some extra cash on their way to and from their day jobs. With the promotions and promises of easy paychecks, these rideshare companies can often make you ask yourself “what have I got to lose?” Actually, a lot. If you are considering using recently purchased used cars in Woodbridge, Va there is a dark side of the companies to consider.

Driving for companies like Uber and Lyft is called “driving for hire.” These on demand driving companies often insist that you only need your personal auto policy and the insurance that they offer in the event of a claim with new or used cars in Woodbridge, Va. Insurance companies heavily disagree. Since these “driving for hire” companies are relatively new, insurance policies that were written decades ago were not written with on demand driving in mind. What this means for a driver of a new car from a Buy Here Pay Here lot or other dealership is that the claim often goes uncovered. Since insurance and on demand companies disagree about how their coverages apply, we have broken down what coverages apply and when for both Uber and Lyft.

If used cars in Stafford, Va are being used for Uber or Lyft and the application is turned off then the vehicle is being used for personal usage only and the personal auto policy will cover claims up to the policy limits. When the app is turned on but there are no passengers in the vehicle yet, Uber and Lyft will provide very low liability limits of 50,000/100,000/25,000 that is secondary to the personal. This is when the driver and their car is most vulnerable. Neither company offers any coverage to protect you or your car! Because the liability is considered “secondary,” the personal auto policy has to file the claim first. Often what happens is your personal auto policy notifies you that they cannot cover a “driving for hire” claim and cannot continue to cover you. You will lose your car insurance and will have to pay out of pocket to damages done to your vehicle.

When the application is on and your vehicle contains passengers, Uber and Lyft provide slightly better coverages. Virginia requires $1 million liability coverage for any accident. Uber provides contingent and secondary comprehensive and collision coverages at $1000 deductibles. Lyft offers contingent and secondary comprehensive and collision coverages with $2500 deductibles that cannot exceed $50,000. Again, these claims have to be filed first with your personal auto policy and they will likely refuse to pay the claim and drop your coverage.

These issues with insurance are some of the reasons that our Buy Here Pay Here lot at Airport Auto Sales does not allow on demand usage with our vehicles. The best way to protect yourself as a driver when working for one of these “driving for hire” companies is to either have a rideshare endorsement added to your personal auto policy or to buy a commercial auto policy that will cover both personal and commercial usage.

Blog Headline: Woodbridge The Dark Side of On Demand Ridesharing - Used Cars in Fairfax, Va Blog Description: Rideshare companies like Uber and Lyft are incredibly popular in ... If you are considering using recently purchased used cars in Woodbridge, Va there is a dark side of the companies to consider. Logo URL: https://airportva.com/wp-content/uploads/2018/01/airport_logo.png
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