Familiar with the new age taxi/ride sharing services like Uber or Lyft? They are part of a Transportation Network Company (TNC) that uses a digital network to connect passengers to participating drivers for a fee. Anyone who wants to use their own vehicle can tap into the network and start making money by driving people to their destination. While the ride-sharing model has legions of fans, it has come under scrutiny for issues related to passenger and driver safety, not the least of which is related to inadequate insurance.
While Uber, Lyft and other ride-sharing services bumped up their liability insurance this summer in response to new laws going into effect in many states, coverage is limited to liability—damage to others. So, drivers may still be uncovered for collision or damages to their car. Also, drivers themselves may not be protected if they are hurt in an accident that they cause.
Don’t mistakenly think that your personal auto policy will fill in the gaps because most policies contain standard exclusions to limit exposures related to the commercial use of a vehicle. So, if you decide to make extra cash as a driver for Uber or the like, make sure to review your current policy to avoid any surprises in the event of an incident.
If you have a personal auto policy with Member Benefits note that your policy does not extend to commercial use. Your liability, medical payments, and uninsured and underinsured motorists coverages will not apply during any time you are logged into a TNC like Uber.
Give us a call at 1-800-279-4010 for more information and help getting appropriate coverage.