Read and understand coverage terms before you put yourself and your personal auto at risk.

Learn how your independent insurance agent helps you address a kitchen table issue.

It’s an election year. Proverbial kitchen table discussions are back on the table. Personal finance issues have always centered on making ends meet, doing more with less, and stretching to get the most from what we have. Life is complicated, individual and family circumstances change, but you can count on personal lines insurance solutions and service from your Trusted Choice Independent Insurance Agent. We also strive to share insurance knowledge that is relevant to readers.

Today’s blog addresses one kitchen table issue, that of stretching to get the most from personal autos, and a big misunderstanding that persists. What immediately comes to mind are drivers for any of the well-known ridesharing companies. To be clear, personal auto insurance policies do not provide coverage (no liability coverage, no comprehensive or collision coverage) for any claim or loss arising out of or related to a personal vehicle for hire.

Two major ridesharing companies provide third-party liability auto insurance for their drivers while enroute to pick up a passenger for hire and during the trip. Did you know the stated liability limit on their policies is much less for stand-by status? The reality is, from the standpoint of the driver, a serious accident during stand-by status involving an uninsured motorist would be woefully underinsured by the main ridesharing companies’ auto coverage. Some personal lines auto insurance companies offer an option to purchase a rideshare endorsement to the personal auto policy, if the insured wants higher limits for stand-by status. Be aware that a rideshare endorsement on a personal auto policy only reinstates your liability limit for stand-by status … it does not extend liability coverage while your personal vehicle for hire is in-service.

What about comprehensive and collision coverage for your personal auto used for hire? Current websites for two major ride-sharing companies indicate they provide comp. and collision coverage for your personal auto while in-service, but not during stand-by. A rideshare endorsement to the personal auto policy should be considered, but realize this endorsement only covers comp. and collision occurring during stand-by. Something else drivers for hire should know is that comp. and collision deductibles required by major ridesharing companies are often higher than the deductibles with which many personal lines auto insurance customers are acquainted. Coughing up $1,000. to $2,500. for a physical damage claim may be a stretch for some. Also, towing and rental reimbursement are not covered by the major ridesharing companies. If your personal auto is disabled during either in-service or stand-by status, you do not have coverage for towing or rental reimbursement.

People are creative. Undoubtedly, some are figuring out they might earn extra cash by renting a personal vehicle they own or lease, while they are not using it. Perhaps you are a snowbird who has two personal vehicles, one in your northern residence and one where you winter in Florida. You decide to rent your personal auto you are not using during your snowbirding/summering cycle to a neighbor or a friend-of-a-friend. Here again, your personal auto policy would not provide coverage of any kind to you or your personal auto, while it is being rented for any reason.

The bottom line is read the fine print. Understand what you are exposing yourself to when you consider stretching to get the most from your personal vehicle.

Richey-Barrett Insurance is your Trusted Choice Independent Insurance Agent for your personal lines insurance needs. Contact us today to discuss your personal auto insurance, homeowner’s, condo, and/or renter’s insurance.