# Insurance Question



## andrew124C31 (Apr 8, 2019)

I just purchased a 2016 Grey Lexus ES, Premium package....16 K miles....17 months warranty left. I live in the DC metro area. I am retired. I got the car primarily for me and my wife's use. (She has her own vehicle.) I last car, don't laugh, was a 1998 Olds Intrigue...really fun car....I could do some maintenance myself. simple, no fuss, low insurance....however, it was starting to show its age.lol

It occurred to me that I enjoy driving, that I might work for Lyft part-time. However, my insurance jumped up to $2,400 a year from next to nothing. I thought that a Lexus might be one of those special cars...but I think now in retrospect that they have to be black...(plastidip?) ha! 

My question is about how much will my insurance jump up if I start driving for Uber and I request a rideshare endorsement from my insurance company?

Am I foolish to bother with rideshare, meaning to say that rather than make a few bucks, lose money in the process?


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## mmn (Oct 23, 2015)

If you properly account for your expenses and deductions you will have little to no taxable income. Your insurance increase is based on a number of factors such as deductibles, liability limits, state, company, etc. but will likely be around $20 to $120 per month.

There are lots of threads here on theses subjects.


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## FLKeys (Dec 27, 2018)

First off I would shop around for better insurance rates, if you have been with the same company a long time you are probably paying too much. Also your insurance company may not have a rideshare option available so you would need to shop around anyway. 

Since there are so many variables in insurance rates the only person that can tell you how much it will cost is your agent or insurance company, just inquire with them. Took me my agent 5 minutes to plug it into his computer and tell me it will be $130 every 6 months to add the rideshare endorsement.

Are you foolish to bother with rideshare, boy are you going to hear warnings and cries about that. Only you will be able to determine that. My suggestion would be find out the cost of insurance and if not to bad sign up with one of the rideshare companies. Do a few trips and crunch the numbers to see if it is worth it for yourself. If it is worth it stop driving and sign up for rideshare insurance. Then start driving again. I was willing to take the risk of driving 5 trips without rideshare insurance to see if it was worth it and if I would enjoy it. After that I stopped driving a few days until my rideshare policy was activated.


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## mmn (Oct 23, 2015)

FLKeys said:


> First off I would shop around for better insurance rates, if you have been with the same company a long time you are probably paying too much. Also your insurance company may not have a rideshare option available so you would need to shop around anyway.
> 
> Since there are so many variables in insurance rates the only person that can tell you how much it will cost is your agent or insurance company, just inquire with them. Took me my agent 5 minutes to plug it into his computer and tell me it will be $130 every 6 months to add the rideshare endorsement.
> 
> Are you foolish to bother with rideshare, boy are you going to hear warnings and cries about that. Only you will be able to determine that. My suggestion would be find out the cost of insurance and if not to bad sign up with one of the rideshare companies. Do a few trips and crunch the numbers to see if it is worth it for yourself. If it is worth it stop driving and sign up for rideshare insurance. Then start driving again. I was willing to take the risk of driving 5 trips without rideshare insurance to see if it was worth it and if I would enjoy it. After that I stopped driving a few days until my rideshare policy was activated.


I think it's better to just get it and drive. You can always cancel at any time and get a prorated refund. Then you are covered from day 1.


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## FLKeys (Dec 27, 2018)

mmn said:


> I think it's better to just get it and drive. You can always cancel at any time and get a prorated refund. Then you are covered from day 1.


True, I was willing to take the risk of 5 trips. Everyone has their own risk thresh hold. Based on where I live I was okay with the risk. In a busy city maybe not so much.


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## andrew124C31 (Apr 8, 2019)

Thanks for all of your advice. At my age. Of course, at my age, I would never drive around without proper coverage. What is interesting is that ll of you were not sure either but it sounds like you are continuing to drive.


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## mmn (Oct 23, 2015)

FLKeys said:


> True, I was willing to take the risk of 5 trips. Everyone has their own risk thresh hold. Based on where I live I was okay with the risk. In a busy city maybe not so much.


Yes, of course. I know someone who took that risk for a year because his insurance company didn't offer it. Since been remedied.

It's a tough call. You only need it when you need it, and you just can't predict that. Only thing for sure is statistically insurance companies know how much it happens and what it costs. It's how they're able to calculate rates.

Your risk is clearly higher driving ride share than just personal use. Myself, I'm putting bewteen 3 and 4 times the miles on the car I normally would for personal use. That and driving in higher risk areas adds substantial risk to me personally.


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## FLKeys (Dec 27, 2018)

andrew124C31 said:


> Thanks for all of your advice. At my age. Of course, at my age, I would never drive around without proper coverage. What is interesting is that ll of you were not sure either but it sounds like you are continuing to drive.


Is it worth it is hard to answer because we all have different opinions on worth and we all have different vehicles and get paid different rates based on market. The key to me is know what it cost to operate your car in your area. Figure out what the pay rates are for your market. Minimize dead miles.

For some breaking even but having something to do is worth it. For others it is never worth it.


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## Ballermaris (Apr 11, 2019)

andrew124C31 said:


> Thanks for all of your advice. At my age. Of course, at my age, I would never drive around without proper coverage. What is interesting is that ll of you were not sure either but it sounds like you are continuing to drive.


When in doubt, seek information from your insurance agent. Pro's for the most part outweigh the Con's. Driving without proper insurance will with an unfortunate incident put you in the financial hole for a rather long period of time.


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## 142605 (Mar 4, 2018)

andrew124C31 said:


> My question is about how much will my insurance jump up if I start driving for Uber and I request a rideshare endorsement from my insurance company?


A rideshare endorsement, depending on your carrier, can be pretty inexpensive. What you should be asking is "Is a rideshare endorsement enough?".


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## andrew124C31 (Apr 8, 2019)

Geico does not cover ridesharing in Maryland or I think they won't cover me because it is a Lexus which makes it Uber X eligible...something like that. So I would have to find another insurance company.


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## 142605 (Mar 4, 2018)

State Farm?


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## peteyvavs (Nov 18, 2015)

andrew124C31 said:


> I just purchased a 2016 Grey Lexus ES, Premium package....16 K miles....17 months warranty left. I live in the DC metro area. I am retired. I got the car primarily for me and my wife's use. (She has her own vehicle.) I last car, don't laugh, was a 1998 Olds Intrigue...really fun car....I could do some maintenance myself. simple, no fuss, low insurance....however, it was starting to show its age.lol
> 
> It occurred to me that I enjoy driving, that I might work for Lyft part-time. However, my insurance jumped up to $2,400 a year from next to nothing. I thought that a Lexus might be one of those special cars...but I think now in retrospect that they have to be black...(plastidip?) ha!
> 
> ...


I'm with USAA and my insurance jumped from 1300 a year to 3000 with rideshare endorsement.


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## andrew124C31 (Apr 8, 2019)

Wow. Considering your other expenses, is it worth it.


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## 142605 (Mar 4, 2018)

peteyvavs said:


> I'm with USAA and my insurance jumped from 1300 a year to 3000 with rideshare endorsement.


That's really confusing, mine was really cheap. That said, their rideshare coverage is AWFUL. It only adds coverage during period 1. If you're in a wreck while Ubering, none of your coverages like medical, towing, rental car, etc. will apply and Uber doesn't offer them either.

I switched to Geico Hybrid/Commercial it was just a few dollars more than USAA and covers me 100% of the time.


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## andrew124C31 (Apr 8, 2019)

Thanks


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## Ballermaris (Apr 11, 2019)

peteyvavs said:


> I'm with USAA and my insurance jumped from 1300 a year to 3000 with rideshare endorsement.


Man that rate hike is too much. Shop around at least.



Authority said:


> State Farm?


That is what I have on my Renegade.


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## Fozzie (Aug 11, 2018)

peteyvavs said:


> I'm with USAA and my insurance jumped from 1300 a year to 3000 with rideshare endorsement.


That's crazy. To add a USAA rideshare endorsement for my 2017 Sentra and 2016 Altima policy in Washington State only cost $18 /mo. (Just over $2k per year for full coverage/comprehensive w/ $500 deductible on 3 vehicles)


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## New2This (Dec 27, 2015)

andrew124C31 said:


> I just purchased a 2016 Grey Lexus ES, Premium package....16 K miles....17 months warranty left. I live in the DC metro area. I am retired. I got the car primarily for me and my wife's use. (She has her own vehicle.) I last car, don't laugh, was a 1998 Olds Intrigue...really fun car....I could do some maintenance myself. simple, no fuss, low insurance....however, it was starting to show its age.lol
> 
> It occurred to me that I enjoy driving, that I might work for Lyft part-time. However, my insurance jumped up to $2,400 a year from next to nothing. I thought that a Lexus might be one of those special cars...but I think now in retrospect that they have to be black...(plastidip?) ha!
> 
> ...


I have a rideshare policy through Erie. I had a GEICO policy before. Erie on 2 cars is cheaper than GEICO was for one.

My agent does several UPNet members. Feel free to P.M. me and I'll be happy to give you his info


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## 49matrix (Feb 3, 2015)

andrew124C31 said:


> Thanks for all of your advice. At my age. Of course, at my age, I would never drive around without proper coverage. What is interesting is that ll of you were not sure either but it sounds like you are continuing to drive.


Much depends on where you will be driving and living in DC you could also be driving in N Virginia and Maryland. If you have an agent talk with them about what's available in a hybrid personal/rideshare policy. There are some out there but I don't think there is one that covers all the states you might need. I drive in NC and have a policy with National General, fully loaded, ie: more than the state minimum, it costs about $95/month. My personal policy used to be about $60/month so for an additional 35 bucks it's worth the peace of mind. Uber has it's own insurance for drivers but it has lower $ coverage and a $1000 deductible. Like you I am doing this in my retirement for some extra money for vacations and such and I choose to drive about 1 or 2 days a week totaling about 10 hours during the morning hours (6 - 11 am) during that time I can make $100/150 with which I'm happy. I used to drive at night but the hassle and the attitudes are not worth it, besides my eyesight is better during daylight! Hope it all works out for you.


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## 142605 (Mar 4, 2018)

49matrix said:


> My personal policy used to be about $60/month so for an additional 35 bucks it's worth the peace of mind. Uber has it's own insurance for drivers but it has lower $ coverage and a $1000 deductible.


Exactly!



49matrix said:


> O am doing this in my retirement for some extra money for vacations and such and I choose to drive about 1 or 2 days a week totaling about 10 hours during the morning hours (6 - 11 am) during that time I can make $100/150 with which I'm happy. I used to drive at night but the hassle and the attitudes are not worth it, besides my eyesight is better during daylight! Hope it all works out for you.


I'm right there with you on all of it. A few bucks more for insurance that covers me is totally worth it. Like you, I'm out in the morning then I have my day free (I don't see as well st night either).

This is NOT supposed to be a full time job. If Uber is your only income you're really dumb.

Safe driving!


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## Seamus (Jun 21, 2018)

andrew124C31 said:


> Geico does not cover ridesharing in Maryland or I think they won't cover me because it is a Lexus which makes it Uber X eligible...something like that. So I would have to find another insurance company.


Not all states have insurance companies that offer rideshare policies, I have no idea about your state. Without rideshare insurance period 1 is your big risk. In NY no companies offer rideshare insurance so you either
1) Have commercial insurance on a financed car. $$$
2) Drive an older car with little value that you don't mind throwing away (preferred)
3) Risk a period 1 accident with no insurance company to pay for your damage. (or remaining balance of your loan)


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## IR12 (Nov 11, 2017)

andrew124C31 said:


> Thanks for all of your advice. At my age. Of course, at my age, I would never drive around without proper coverage. What is interesting is that ll of you were not sure either but it sounds like you are continuing to drive.


Do YOUR homework. Insurance has a ton of variables. Good luck!


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## 142605 (Mar 4, 2018)

Seamus said:


> In NY no companies offer rideshare insurance so you either
> 1) Have commercial insurance on a financed car. $$$
> 2) Drive an older car with little value that you don't mind throwing away (preferred)
> 3) Risk a period 1 accident with no insurance company to pay for your damage. (or remaining balance of your loan)


There is another option. In the event of an accident in period 1, it is extremely unlikely that your personal carrier would even know your app was on unless you volunteered it and unlikely to investigate unless it involved major injury claims.

While I'm not suggesting someone should lie, which would be insurance fraud, you're also not required to tell them unless they ask.


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## Seamus (Jun 21, 2018)

Authority said:


> There is another option. In the event of an accident in period 1, it is extremely unlikely that your personal carrier would even know your app was on unless you volunteered it and unlikely to investigate unless it involved major injury claims.
> 
> While I'm not suggesting someone should lie, which would be insurance fraud, you're also not required to tell them unless they ask.


Each state is different. In Ny the law requires a database of all drivers accessible by The insurance company so they already know whether you rideshare or not. Secondly the law requires Uber to disclose to the insurance company wether you were online or not. In NY your plan is very unlikely to work. Each state is different yours might not be that way.


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