First Extended Warranties Emerge for Uber and Lyft Drivers
Owners of cars for hire previously suffered voided warranties and insurance
A few months ago we warned Uber and Lyft drivers that they are voiding their warranties and car insurance because their cars are being used for hire. See our article covering this here: Warning Uber Drivers: You Just Voided Your Extended Warranty & Car Insurance.
We here at CarbuyingTips.com have been pressing extended warranty companies to see if they would offer protection coverage for Uber and Lyft drivers. The problem stems from the accelerated wear and tear of your vehicle if you drive your car for one of these services.
Because your car endures a lot more mileage and wear and tear in a shorter amount of time, you are likely to have frequent breakdowns and expensive repairs, which is why the warranty companies will not normally cover vehicles used for hire.
Coverage is Now Available
CARCHEX has emerged as the first company to sell extended coverage plans specifically for Uber and Lyft drivers. We have been recommending them for normal extended warranties for many years. They are a solid company and claims are backed by Assurant, Inc. High quality insurance backing is critical when it comes to buying any kind of warranty.
Their offering is called PROTECTmyUBER and they offer several levels of protection. You can get anything from the simple power train coverage all the way to advanced coverage for High Tech Electronics, cooling system and fuel delivery systems. Don't worry about the name. You will be protected if you drive for Lyft or any other similar ride share company.
Surprising to me was the fact that they cover vehicles up to 16 years old and under 150,000 miles. It’s difficult to find extended warranties that cover normal vehicles with that high mileage, let alone a car for hire.
Most people don’t know that many Uber drivers are broke. They are just hard working folks looking to make a little side cash in order to make ends meet. So CARCHEX was wise to offer a monthly payment plan so drivers don’t have to front a lump sum of cash to get protection on their vehicles.
Choose the Lowest Deductible Vehicle Protection Plan You Can
They have three deductible options: $100, $250 and $500. We have always advised you on paying a bit extra on extended warranties to get the lowest deductible plans available. This is so you don’t get hit with a $500 deductible when you submit a repair claim.
You may not have $500 to shell out when a major repair is needed. The idea of an extended warranty is for you to avoid having to pay for repairs. You don’t want to be paying hundreds of dollars for deductibles.
Avoid Buying More Coverage Protection Than You Need
Vehicle service contracts can be tricky to buy, so get your head around all the covered items in the plan you are looking at. For example their gold plan covers high tech electronics, like navigation, etc. If you don’t have high tech electronics on your car, why pay for the extra coverage that you’ll never be able to use?
Make Sure Your Uber Vehicle is Covered for Maintenance Items
CARCHEX also offers The Pre-paid Uber Car Maintenance program, roadside assistance with key lockout and tire and wheel protection. But keep in mind many tire shops include tire insurance as part of the sale, although they don’t cover wheels.
Our quick tips for buying Uber Vehicle Protection Plans
- Check with your CPA if you can write off all or part of your extended warranty
- Choose the lowest deductible plan you can get
- Don’t buy more coverage than you need
- Always review sample contracts before you buy. Avoid warranty companies not showing the coverage first
- Confirm that your Hybrid vehicles or electric vehicles are eligible for coverage
Let us know about your experience with insurance or warranties on your Uber vehicle. What challenges and difficulties have you faced?
About The Author: Jeff Ostroff
A lifelong consumer advocate with over 20 years of unparalleled expertise, Jeff is the Founder, CEO and Editor-In-Chief of CarBuyingTips.com. As chief consumer advocate, he oversees a team of experts who cover all aspects of buying and selling new and used cars including leasing and financing.
For decades, Jeff has been the recognized authority on vehicle purchasing, sought out often by the media for his decades of experience and commentary, for live call-in business radio talk shows and is cited often by the press for his expertise in savvy car shopping methods and preventing consumer scams and online fraud. Jeff has been quoted in: CNN, MSNBC, Forbes, New York Times, Consumer Reports, Wall Street Journal and many more.
Jeff also has extensive experience and expertise in new car brokering and selling used cars for clients on eBay and Craigslist. Connect with Jeff via Email or on Twitter.
