Will Insurance Cover My Car If Stolen In An Uber business

Dear Insurance Info,

I am very worried about losing my source of livelihood due to Covid-19. So I have been seriously thinking of another source of income. So I figured since I have a car and I spend most of my time at work, why not hire someone to use my car for Uber business while I insure the car in case of theft. I would like to confirm if my comprehensive insurance would cover the car in case the driver steals the vehicle.

Regards,

Uche

Dear Uche,

There are lots of people facing the same problem right now. Everyone is worried about losing their income and they are all thinking of how to protect themselves and their families. So in that regards, you are not alone.

I like the idea of using your car to make additional income rather than sits idly in your office. It is also good that you are doing the necessary research before you embark on a new business.

To answer your question, I visited my insurance policy and found the following:

Car Sharing

This policy covers you while carrying passengers for social or similar reasons, if:

1. You do not carry passengers as customers of a passenger-carrying business, car sharing scheme or for hire and reward
2. You do not make a profit from passengers’ payments or from allowing someone to drive

Recommended: 5 Things Comprehensive Insurance Won’t Cover

In other words, If you use your car for for Uber business, insurance will not covered your loss. However, you can apply for a commercial insurance for Uber business. Commercial insurance would be more expensive that the regular insurance policy. If in doubt or need any further clarification on the cost of commercial policy, please contact your insurance provider.

Do you have questions about car insurance or need guidance on how to go about making successful insurance claims? Do you have any question you would like us to answer? Send them to Insurance Info and please include the state where you live (no full names will be used).

By submitting your story to Insurance Info Nigeria, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.