Transportation has changed quite a bit in the past decade, particularly in the taxi industry. With the rising prices of taxis and other public transportation, rideshare services like Lyft, Uber, and Sidecar have changed the transportation industry. Unfortunately, any changes in the transportation can also mean new dangers for passengers.
Ridesharing is a convenient service where drivers that live in a certain geographical area will drive their own cars to pick up clients. Clients use the company’s app to request a driver to their location. The drivers will then get a notification on their cell phones telling them when and where to pick up the client. These drivers originally used their own insurance for their vehicles because the vehicles were primarily for personal use.
This became a serious problem for both the drivers and the clients they were picking up. Personal auto insurance has an exclusion of coverage for any delivery that a vehicle is making. This means that when a driver is giving someone a ride for any type of profit, their vehicle is not covered by their personal insurance. If a driver were to get in an accident with a client in the vehicle the driver is susceptible to a lawsuit, and there is no coverage for any medical expenses from the accident. Accidents were happening quite frequently due to the fact that many drivers were using cell phones while driving to get notifications for clients. (See related article: Distracted Driving Causes 8,000 Accidents Every Single Day!)
Only recently did certain companies require commercial vehicle insurance for drivers. There are also some states that require this as well, though not all states require this.
If you are considering using any rideshare company for transportation, be sure to check on the following things:
- Make sure the company requires its drivers to have commercial vehicle insurance.
- Tell the driver when you get in that you do not condone driving and cell phone use at the same time. The driver should not be on his or her phone while you are in the car.
If you are thinking of becoming a Rideshare driver, check with your potential employer on the following aspects of your job:
- What kind insurance, if any, do they provide for their drivers?
- If you need a certain type of insurance, where can you get the insurance from?
- What are the specifications needed for the insurance?
If you verify all of these questions with the company or your driver, you can get to where you need to go, save money, and stay safe!
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About the author: Lauren is an R&R Insurance intern learning about the insurance industry through sales and service experiences.
