What might happen if a driver is involved in an accident while driving for a ride-sharing service without proper coverage?

When a driver is involved in an accident while driving for a ride-sharing service and does not have the appropriate coverage, they may face significant financial consequences. Without proper coverage, the driver might have to pay for all damages out of pocket. This means they would be responsible for all repair costs, medical expenses, and any liabilities that arise from the accident, which can be quite substantial.

Ride-sharing companies typically provide certain levels of insurance coverage for their drivers, but this coverage may only apply when the driver is actively engaged in a ride or when the app is turned on. If the driver is not covered by their personal auto insurance policy—which often excludes commercial activities like ride-sharing—the financial responsibility falls entirely on them in the event of an accident.

In contrast, personal insurance may not automatically cover an accident that occurs while providing a ride-sharing service, especially if the policy specifically excludes such use. Therefore, the risk of incurring high out-of-pocket expenses is significant if the driver lacks the right insurance coverage for ride-sharing activities.