The popular adages of years ago, “Don’t talk to strangers” and most definitely, “Don’t get into a strangers’ car” have seemingly fallen to the waist side. The degree to which the internet has infiltrated our society has affected every aspect of our socialization, beliefs, travel, and relationships. For example, consider for a moment the old adage about not riding with strangers and think about how that ironically NOW pertains to ridesharing. Also, what about the insurance protection for ridesharing?
The internet connected with the “sharing economy” has most certainly affected how we travel and with whom we get into a car. Uber and Lyft have become the innovate leaders in the transportation network system and getting into the car with strangers has now been deemed as “convenient” and safe.
Do Operators of a Ridesharing Service Need Their Own Insurance Protection?
Ridesharing has become one of the largest sharing economy exposures, but what about insurance protection if you are an Uber or Lyft driver? Many people in the last few years have found driving for a ridesharing service can be profitable and convenient. After all, you can use your own auto to drive people to their travel destination at your own convenience, but what about insurance or inadequate insurance?
Many insurers are now changing the terminology in auto policies to refer to “transportation network platform” and how it is defined isn’t always clear. In fact, the terminology outlines several exclusions pertaining to liability and physical damage (comprehensive and collision coverage). So, before you decide to use your vehicle to work for a transportation network platform, you need to contact your local N.C. independent insurance agent to discuss the provisions and exclusions and how it relates to your job with Uber/Lyft. You need to make sure your N.C. auto policy is endorsed with the right type of coverage or you may find out that when you need it the most, your insurance is inadequate.
Before You “Lyft”, Know the Policy Provisions, Exclusions, and Conditions
If you are a driver for any of the transportation network platforms, you most likely are aware of how the coverage changes depending on your situation. For example, let’s assume you have made a match with someone needing a ride and you are heading to pick up that particular rider. Uber/Lyft provides $1,000,000 of third-party liability coverage. This same amount also applies once the driver has picked up the rider and is en route to the final destination, BUT, what about the times when you are waiting to make a connection but have not yet made the match? The limits in this situation decline significantly to $50,000 per person/ $100,000 aggregate for bodily injury, and $25,000 for property damage liability.
Here’s the good news! We, at Twin City Insurance, can assist you in making sure you have adequate insurance for each situation you are in. You can buy back coverage (for a nominal fee) so that your personal auto limits will transfer when you are logged in, but you don’t have a job match. This would include Bodily Injury, Property Damage, Medical Payments, and even Physical Damage Coverage, if included on your auto policy.
Peace of Mind for Every Situation
With ridesharing services now being a popular, safe, and convenient mode of transportation, you need to have the peace of mind that for whatever situation you find yourself in, you know you are adequately covered. Although it appears we have thrown out the old adage of not getting into a strangers’ car, you can still take proper measures of safety when operating as a driver for Uber/Lyft or as a rider. Contact us today at 828-464-2643 with any questions pertaining to your N.C. auto insurance policy and how it pertains to your particular situation with a ridesharing service.