What Insurance Do You Need for HyreCar?
Last Updated on February 6, 2023
HyreCar is a car-sharing platform that provides short-term car rentals to ride-sharing drivers and delivery drivers. It’s a good option for drivers who’d like to drive for companies like Uber or Lyft but do not have a vehicle of their own. The platform connects car owners who are not using their vehicles with people who need a car for a short period of time. HyreCar provides insurance coverage and a convenient and flexible way to rent a car for ride-sharing or delivery services.
But how exactly does insurance for HyeCar work? Do you need to purchase your own insurance before you drive a HyreCar or rent out a car on HyreCar? Please continue reading to learn everything you need to know about HyreCar and how its insurance works.
Table of Contents:
- How Does HyreCar Work?
- HyreCar Insurance as the Vehicle Owner
- HyreCar Insurance as the Borrower
- How to Start Driving a HyreCar
How Does HyreCar Work?
HyreCar allows users to rent vehicles so they can drive for Uber, Lyft, and other rideshare or delivery platforms.
HyreCar users can rent cars from other HyreCar members. They can also earn money by renting out their own vehicles to other users on the platform.
HyreCar is mostly used by people who would like to earn money driving for Uber, Uber Eats, Lyft, DoorDash, or other companies, but do not have a vehicle of their own. All they need to do is find a car using the HyreCar app or website, choose how long they’d like to rent it, download registration and insurance documents, and then meet with the owner to get the keys.
But as with other ridesharing and peer-to-peer car rental platforms, insurance coverage is a concern. For borrowers and owners, it’s essential to ensure your HyreCar is properly covered. But how does insurance work for HyreCar? Below, we answer every question you may have.
HyreCar Insurance as the Vehicle Owner
According to the HyreCar website, there are many insurance coverage options for vehicle owners.
All HyreCar plans meet your state’s minimum insurance requirements. HyreCar also provides excess liability coverage of up to $1 million if you are legally liable for an accident.
There are four coverage options for owners at HyreCar: Basic, Standard, Premium, and Premium Plus. The cost of coverage is deducted from the owner’s earnings. With Basic coverage, the owner will earn the most but have the least amount of protection. With Premium Plus, the owner will earn the least but have the most amount of protection.
Here is a comparison of the different coverage options:
| Basic | Standard | Premium | Premium Plus | |
|---|---|---|---|---|
| Owner Earnings | 85% | 80% | 75% | 70% |
| HyreCar Earnings | 15% | 20% | 25% | 30% |
| Liability Coverage | $1,000,000 | $1,000,000 | $1,000,000 | $1,000,000 |
| Physical Damage Coverage | Up to $50,000 | Up to $50,000 | Up to $50,000 | Up to $50,000 |
| Physical Damage Deductible | $3,000 | $2,500 | $1,000 | $500 |
| Cleaning | Up to $30 | Up to $50 | Up to $60 | Up to $75 |
| Gas | Up to 65% | Up to 80% | Up to 85% | Up to 100% |
| Mileage | Up to 65% | Up to 80% | Up to 85% | Up to 100% |
| Impound Fee | No Coverage | No Coverage | Up to 85% | Up to 100% |
| Lost/Stolen Keys | No Coverage | No Coverage | Up to $250 | Up to $300 |
Claim Process
When renting your vehicle out on HyreCar, you are expected to take photos of your car before and after each rental. If your vehicle gets damaged during the rental, you must take photos to document the damage for your claim. You should also gather as much evidence as possible, including accident reports and driver and witness statements.
To submit a claim, you will go through HyreCar’s third-party processing partner, Sedgwick. There, a representative will be assigned to your case and will be responsible for handling the claims process. It usually takes Sedgwick 2 to 8 weeks to process each claim.
As the vehicle owner, you will be responsible for the deductible amount based on the coverage amount you chose (either $3,000, $2,500, $1,000, or $500). HyreCar/Sedgwick will pay for the rest of the repair costs.
Does HyreCar Cover Everything?
No matter what insurance coverage you buy, be it personal or commercial, you will never be covered for every possible situation that could arise.
Likewise, it’s important to realize that the insurance provided by HyreCar may have certain restrictions and exclusions. It may not cover all damages or liabilities in every situation. It’s recommended that renters and borrowers carefully review the insurance coverage details and understand their responsibilities in case of an accident or other incident while in a HyreCar rented vehicle.
HyreCar Insurance as the Borrower
What if you’d like to rent a car from HyreCar? Do you need any additional coverage?
Fortunately, you won’t need to worry about insurance if you want to drive a HyreCar vehicle. Even if you have your own insurance coverage through your personal auto insurance policy or your credit card, you won’t need to use it.
HyreCare requires all vehicles in its fleet to be insured through HyreCar’s own insurance coverage that we described in detail above. Therefore, your vehicle will be covered with up to $1 million in liability coverage.
When you rent a vehicle through HyreCar, you will be provided with all of the insurance, inspection, and registration documents you need.
How to Start Driving a HyreCar
To begin driving a HyreCar vehicle, you must sign up on the HyreCar website or app.
Before you rent a vehicle, you must complete HyreCar’s one-time background check, which takes an average of 48 hours to complete.
After being approved, you will need to choose a vehicle to drive. Once you select your car, you will receive insurance, registration, and inspection forms. You will then need to upload these forms to your rideshare account (i.e. Uber, Uber Eats, Lyft, etc.).
After the paperwork is complete and you are approved to drive, you can contact the vehicle owner to schedule a time to pick up the keys and start driving.
Final Word on HyreCar Insurance
HyreCar provides insurance coverage for its car rentals that will cover both liability and damage to the vehicle. HyreCar insurance is included in the rental rate and protects both the car owner and renter, but may have restrictions and exclusions. It’s recommended to review the insurance details and understand responsibilities in case of an incident in a HyreCar.
