Yes it is a factor for driving uber/lyft. Here is the rub about Uber insurance:
Scenario 1
You turn on your Uber app and expect to get a ping any moment to go pick up a passenger. Your normal insurance now considers your car as being used in business and won’t cover you. Uber insurance only covers you and your vehicle while you have a passenger in the car. This called livery service.
Scenario 2
You turn on your app, you get pinged to go pick up a passenger(s) and you are involved in an accident. (See Scenario 1).
Scenario 3
You drop off your passenger, end trip and keep the app on and after you drive away expecting the next ping you are involved in an accident. (See Scenario 1)
Scenario 4
You are involved in an accident while a passenger is in your car. Your normal insurance won’t cover the costs because your vehicle is being used in a business capacity. Uber may or may not cover you, but will cover your passenger which is the reason why Uber has insurance in the first place. They carry the insurance to cover the passenger and Uber will flat out tell you to get additional insurance if you were to get into an accident.
Scenario 5
You drop off your passenger, end trip and turn your app off. You get into an accident, your normal insurance may cover you and it may not. The reason is that your reason for being there was dropping off the passenger. So the insurance may say that you are not covered until you either go to another destination or go back home. It is a possibility your insurance provider may take this narrative as was explained to me by an insurance agent. The reason for this is that if you declare your home as your place of work and deduct expenses as such, then you need to return to your place of work to finish out the day or if you go to, let’s say the grocery store, it shows you are no longer performing in a business capacity.
The point is once you turn on your app, the insurance company sees this as your vehicle being used in a business. Uber has insurance because they know this and the insurance is there to cover the passenger more than the car and driver.
Moral of the story:
CYA get livery(or a rideshare) business insurance. I have it in addition to normal insurance and it costs me around $30 more a month.
Those who rely on their normal insurance and put in a claim while using their vehicle as a business can be prosecuted for a false claim.
Thank you for clarifying. One question my car insurance company stresses for each vehicle is how many miles they’ll be driven each year (with a follow-up of “how far is the commute to work?”).