Information about ride sharing and the risks you might be taking.

UberShareRide Sharing – A dangerous business activity you might want to be informed on.

Ridesharing is gaining in popularity because it is more convenient than calling a taxi. It also provides those with insured automobiles a way to earn some extra money. Before you decide that you would like to engage in this business activity, you might wish to inform yourself about some of the unpleasant things that are happening in this industry.

Who Can Participate in Ridesharing?

In order to participate in this venture, you must have automobile insurance, but it would be to your advantage to read the fine print first. Much of the most important coverage on your personal auto insurance policy is excluded while a vehicle is being used for “public or livery conveyance.”

A public or livery conveyance is when you use your vehicle to transport people in exchange for a fee or money. Whenever coverage is excluded, as with the “public or livery conveyance exclusion”, you will be personally liable for damages or injuries caused by you while in the process of performing your ride-share duties.

Does the Company Carry Liability Insurance?

Some ride-share companies provide excess liability insurance for their drivers. Uber is one of those companies. It carries a $1 million liability policy, in excess of, your own personal liability coverage. However, this does not mean that you will always be covered. If the right circumstances present themselves, you may be entirely on your own if you cause a collision.  For example, collision coverage….the coverage that pays for damage to your own vehicle…..would not be covered under the ” public or livery conveyance exclusion”!!!

A Case in Point

An Uber driver was “logged in” as available to perform the ride-sharing service. After picking up a passenger, this particular California driver hit a child who was walking in the crosswalk. The child eventually died of her injuries.
The driver’s auto insurance company denied coverage because the driver remained “logged in” to Uber and therefore was still available for customers.  So, at the time of the accident, the insurance company said they were acting as a livery service. Unfortunately, Uber’s insurer is also denying coverage because they say their coverage only applies while a driver is on a, so called, “active trip”. The case is currently in the courts, but this is just one more example of how important it is that everyone understand this critical exclusion.

Lyft and Sidecar

Another thing to beware of is how executives describe their companies. Some organizations like Lyft and Sidecar shy away from the “rideshare” label, but that is exactly what these companies are offering to their customers. Drivers and riders come together for a fee, so Lyft and Sidecar drivers are also susceptible to the public or livery conveyance exclusion even if their companies advertise their services as something different.

Parents, share this information with your students away from home. Share it with your friends, share it with anyone who you think might have reason to be informed.

Read More about how your policy might respond to Ride-Sharing Situations.

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