As an insurance agency specializing in commercial auto insurance for vehicles used to transport passengers, we have certainly experienced the full spectrum of scenarios. Today, I'd like to touch on the part-time rideshare driver that just intends to driver a few hours each day.
At last, there are some personal auto insurance companies that are coming around to allowing the rideshare exposure on their policies. It is certainly a welcomed addition to our "toolbox" of options for our clients. The insurer we work with has essentially added a modest surcharge to their regular premiums to allow the rideshare exposure. However, it's important to watch for coverage limitations in place by the insurance companies. The most relevant being that insurers will require confirmation from the rideshare service as to the driver's activity before an accident. Insurers will typically not allow any other passenger transportation exposure outside of rideshare programs. They essentially require absolute confirmation that their insured was driving for a rideshare program at the time of an accident. Any other scenario involving transporting of passengers for a fee would be grounds for a claims denial! Any work outside of rideshare assigned trips, would involve purchasing a commercial auto policy specifically made for vehicle-for-hire exposures.
I recently took an UBER ride from an area airport. I couldn't resist the urge to ask the driver regarding the insurance requirements for his area (Lake Mary/Sanford, FL).
I was surprised to hear that he replied that there were not currently any insurance requirements other than maintaining a regular personal auto insurance policy! To drivers, this must seem like an amazing opportunity! They just get registered on-line with the rideshare program and start driving with little or no other costs needed. However, they are not thinking of their own personal insurance policy terms and conditions. Injured guests could elect to sue the driver as well the rideshare company. Rideshare companies offer often up to $1 million of auto liability limits to their drivers, but with today's litigious society, $1 million may not be enough especially with multiple passengers. Without at least the rideshare endorsement on their personal auto policy, they would not even have any legal defense from their policy. This is not to say that we haven't received many calls in the last year from people trying to do the right thing and secure the correct insurance coverage for themselves. But I can't help but wonder how many more are out there without it?
Please contact our office with any questions: office@ticfonline.com. One of our experienced agents would be happy to assist!
Ann Marie Sikes Bessire
President
Transportation Insurance of Central FL, Inc.
3850 Curry Ford Rd Ste A
Orlando, FL 32806
407-380-9097
www.limoinsuranceofcfl.com
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