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It’s official: Proposition 1 has been voted down in Austin. Uber and Lyft are announcing that they are pausing their service starting Monday, May 9th. While it’s possible that negotiations between these ride-sharing companies will allow them to return in future, the timeline surrounding these events is unclear.
Currently, there are some alternative ridesharing companies still operational in Austin, including Get Me, zTrip, and Wingz. These companies are likely to see an increase in usage after the recent vote, and might also provide a way for Uber and Lyft drivers from Austin to continue to work.
Ride-sharing drivers have encountered some difficulties with remaining insured while they drive for their respective companies. Most auto insurance policies state that using your vehicle “for hire” or for “business use” is not covered.
At Britton and Britton Insurance, this isn’t always the case. You can receive auto insurance coverage, and still drive for Uber, Lyft, or other transportation network companies (TNCs) such as those above.
Can I Be Insured While Driving for Uber/Lyft?
Recent changes in Texas insurance rules made it more attractive for Progressive to offer a plan to cover Uber drivers
Source: InsuranceJournal.com
Yes, you can. As of February 19, 2016, Britton and Britton Insurance has been offering personal auto insurance policy endorsements for Lyft and Uber drivers. Opting for this coverage as a driver of a TNC will provide you with the services and benefits of our individual auto plans, including claims service.
For new customers driving for TNCs, this is an affordable option to provide yourself with auto insurance. Many other companies would deny claims related to driving, and cite unacceptable vehicle use as a reason.
What Is Covered by Uber/Lyft Driver Insurance?
According to Progressive, their new coverage is intended to cover the gap between a personal auto policy, and the commercial coverage held by Uber and Lyft themselves. In this way, drivers can remain insured while using their vehicles for business use as independent contractors for TNCs.
A TNC policy should cover similar amounts to your personal auto insurance coverage. Deductibles may differ, but can also be covered by certain policies or certain companies.
What Happened to Uber and Lyft in Austin?
On Saturday, a vote was taken for Proposition 1. Voters chose to strike down Prop 1 with 56% of the vote. Voting for the proposition would have repealed the previous city law and allowed a law authored by Uber/Lyft to enter law.
Since the proposition was denied, previous city ordinances have remained in effect. Uber and Lyft have paused their service in Austin in response to this vote.
Ride-sharing services planned to suspend operations in Austin
–Source
As of now, Uber and Lyft are both still operating in the cities directly surrounding Austin. Drivers will pick you up as long as you begin your ride outside Austin city limits, and can drive you into the city as well. It might prove difficult to find a ride back out of the city, however.
If you’re a driver for a ride-hailing company, you may be able to be insured. As always, it’s best to discuss your insurance policy options with an agent. At Britton and Britton, we work for you, to help you find the most cost-efficient and effective plan for your needs. Give us a call to learn more about auto insurance policies for Uber, Lyft, and other TNC drivers.
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