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Are you a rideshare driver? The type of insurance you need

| Jun 2, 2021 | Insurance Coverage |

As a rideshare driver, you spend more time driving around in your car than most people. You know better than anyone that it can be extremely dangerous to be on the road for so long, and that as a result you’re at a greater risk of getting into a potentially expensive car accident. Make sure that you have gap insurance in place so that you don’t lose all of the hard-earned money you have been working for.

What gap insurance does

Gap insurance is an insurance policy that compensates for the difference between the value of a car and the amount owed on the car.

If the car is completely destroyed in an accident, the driver can depend on other auto insurance policies to provide up to the value of the car, and then their gap insurance policy will provide the rest of the money that the driver owes to the bank or other lender for the purchase of the car.

Why you need it

Like many people, you are probably still making payments on your car. The unfortunate truth about cars is that they lose value quickly. This means that the actual current value of your car might be well below the amount that you owe the bank on your car loan.

If you get into a severe accident that totals your car – and you don’t have gap insurance – your insurance company will most likely only compensate you up to the current value of your car. This means that you won’t get enough to pay off your car loan, and you will still owe money to the bank even after losing your car.

Since you are on the road more often than most other drivers, you face a higher risk of getting into a devastating accident every day. Even though it can be painful to make the monthly payment on another insurance policy, in the event of a major car accident you will be very glad that you purchased gap insurance.