Yes, if you are working for either Lyft services, you need to have additional insurance that covers you while using your vehicle for business. And Yes, Lyft provides some insurance, but here we will discuss the insurance you have on your own vehicle.
The personal auto insurance policy was created to provide coverage for individuals driving to work, driving while on vacations, etc. It was never intended, nor is it endorsed properly to handle vehicles that are being used for business purposes.
Most importantly, even if you don’t want any additional protection, all standard un-endorsed Michigan auto policies have an exclusion for a personally insured vehicle being used in a business capacity.
This means that if you decide to just not tell your agent about your passenger transportation job, don’t be surprised if the policy refuses to pay for any damage to your vehicle, any liability claims, or any claims from damage to property of others. If your passenger is injured while in your vehicle or while entering or exiting your vehicle, your policy will not provide defense costs or any financial settlement if you are sued and deemed responsible.
For these reasons, it’s imperative that you are in contact with your insurance agent to see if your policy can be endorsed to provide TNC (transportation network coverage). If your company doesn’t provide that they may offer to insure you on a business auto policy which yes will be more expensive. There are companies available that provide this coverage on a personal auto policy, so you may need to shop around with other insurance agencies as well.