The “gig economy” has transformed how independent contractors work, and rideshare driving has become a very popular source of income for drivers around the world. Platforms like Uber and Lyft have allowed drivers the freedom to make money on their own schedule, but the only downside is the significant strain it puts on their vehicles. Since rideshare drivers quite literally depend on their cars for their livelihood, unexpected mechanic failures can be devastating.

Vehicle service contracts, also known as extended warranties or auto protection plans, provide an extra layer of financial security that helps drivers manage repair costs and keep their vehicles on the road longer. However, these plans don’t always cover certain nuances of gig work, like rideshares. Learn about the role of vehicle service contracts and commercial use add-ons to determine if you should get coverage for your rideshare or delivery vehicle.

How Rideshare Driving Impacts Vehicle Wear and Tear

Driving for rideshare services like Uber and Lyft – or food delivery for DoorDash or InstaCart – can put a significant strain on your vehicle. The business model of frequent driving, prolonged hours on the road, and stop-and-go traffic all contribute to faster wear and tear for your vehicle. This means that your brakes, tires, and transmission, along with other parts under the hood, all endure constant stress that increases the likelihood of mechanical breakdowns.

Given that many Lyft and Uber drivers rely heavily on their vehicles for their livelihood as mentioned, unexpected repairs can result in financial hardship by missing out on on-demand full-time work. Additionally, excessive mileage can even shorten the lifespan of various components under the hood of your car which can lead to frequent part replacements. Without adequate protection, these repairs can be expensive and disrupt your employment relationship.

Does Driving for Uber or Lyft Void Your Manufacturer’s Warranty?

The majority of factory warranties for vehicles are designed for personal use and not commercial use. This means that if a vehicle issue arises while driving for Uber or Lyft, the manufacturer may deny the warranty claim. As a result, you may be on the hook for the cost unless you have additional protection and coverage on your vehicle.

Some automakers do extend specialized warranties for commercial drivers, but the policies often come at a higher cost, given the added wear and tear described above. That’s why understanding the fine print of a manufacturer’s warranty before investing in it can help you, as a rideshare driver determine whether you need supplemental coverage through a vehicle service contract or extended warranty.

Do I Need a Rideshare Extended Warranty?

An extended warranty or vehicle service contract (VSC) can provide financial protection beyond that given by a manufacturer’s warranty. For self-employed gig economy workers, extended coverage with a “commercial use” add-on can help cover costly repairs, including engine, transmission, and electrical failures. Since rideshare and delivery driving can increase the likelihood of vehicle breakdowns, having a full and comprehensive plan in place for your vehicle helps ensure you get back on the road quickly without bearing the full financial burden of unexpected repairs.

A VSC with a commercial use option will also provide you with peace of mind by offering premium access to pre-approved repair facilities and trained mechanics local to your area. Many providers, such as Endurance, also offer benefits like towing, rental car reimbursement, and trip interruption coverage, which sweetens the deal.

For gig workers who depend on their vehicles on a daily basis, these advantages can all significantly reduce downtime and financial stress. Without a VSC, the cost of sudden repairs could quickly result in drivers needing to pause their work or take on costly loans just to get their vehicles fixed.

Things to Look for in a Rideshare Extended Warranty

When selecting an extended warranty or VSC for your rideshare or delivery vehicle, you will want to consider as many coverage options as possible that address common mechanical issues. At Endurance Warranty, we offer customizable plans that can include the following features and perks:

• Powertrain Protection: This covers essential components like the engine, transmission, and drivetrain.
• Roadside Assistance: Includes towing, lockout assistance, and fuel delivery in case of emergencies.
• Reimbursement for Breakdowns: Helps with rental car expenses or alternate transportation when a vehicle is in the shop.
• Flexible Payment Plans: Endurance has options to fit different budgets and financial needs.
• Coverage for High-Mileage Vehicles: Plans such as Secure Plus offering are ideal for rideshare drivers with extensive mileage on their vehicles already.
• Trip Interruption Coverage: Assists drivers who experience breakdowns far from home by covering lodging and food expenses.

Rideshare Extended Warranty FAQs

Does driving for Uber void my warranty?

In most cases, yes, driving for Uber will void a manufacturer warranty as it classifies as using a personal vehicle for commercial use. This means that repairs may not be covered under your original factory warranty.

What repairs are most common for rideshare vehicles?

Given the added wear and tear, rideshare and delivery vehicles most commonly see issues with the brakes, tires, transmission, and suspension system first due to frequent stop-and-go traffic. Cooling system maintenance, battery replacements, and electronic component failures are runners-up for common issues as well.

Can I get an extended warranty if my car has high mileage from rideshare driving?

Yes, many VSC and extended warranty providers, including Endurance, offer coverage for high-mileage vehicles that are targeted to offer protection for only the most vital components under the hood. Some policies even cater specifically to rideshare drivers and offer a commercial use option.

What’s the difference between a vehicle service contract and rideshare insurance?

A vehicle service contract covers mechanical repairs and breakdowns whereas rideshare liability insurance offers coverage for accidents or damage that occurs while driving for a rideshare company. Rideshare insurance is required by most rideshare platforms and protects against third-party claims, whereas a VSC ensures your vehicle remains in working condition if there are manufacturer defects that cause a breakdown.

Does Endurance offer coverage for gig economy drivers?

Yes, at Endurance Warranty, you can rest easy knowing there is tailored coverage that suits rideshare and gig economy drivers. Each plan and add-on is designed to address unique challenges that rideshare and delivery drivers may face, including high mileage and extended vehicle use.

Drive With Peace of Mind Using Endurance

For rideshare and delivery drivers who depend on their vehicles for income, having an effective extended warranty or vehicle service contract in place is important. At Endurance, there are a variety of customizable plans to choose from, with our Supreme, Superior, and Secure Plus plans being the most popular, as well as others available with the commercial use option.

As an added benefit, all Endurance plans come with standard perks and one year of our Elite Benefits package.* This gives you bonus coverage, including tire repair or replacement, key fob replacement, collision coverage, and more. All of this combined will help ensure you feel safe and sound in your rideshare or delivery vehicle.

To learn more about which Endurance plan can help with your rideshare or delivery driver work, contact one of our plan advisors at (800) 253-8203 or request a FREE quote online. You can also shop our eStore to see plan recommendations and pricing now!