Ride sharing is an integral part of our contemporary times, it seems, and you may feel safe riding in the steel chariots of these app-based services. While you may love them or hate them, as a passenger, you're protected...

So what about the driver, the pilot, the navigator, the chauffeur? (Not so much)...

While passengers are protected by Uber's policies at $1,000,000.00 for general liability and the same for uninsured persons, as well as injuries, the driver doesn't receive the same royalties. And yes, while $1,000,000.00 seems "exceptional" to some, recognize that lengthy hospital stays can run-up that cost in no time.

While the ride-sharing service expressed it'd pay for damage to the driver's vehicle or the driver him or herself, so long as he or she had a valid insurance policy, (with collision coverage). This is particularly interesting, as the driver probably won't have collision coverage... (oops).  

Essentially, ride-sharing app drivers are hung out to dry when it comes to insurance for their coverage, especially when a "route" hasn't been logged through the iPhone/Android-based application.  The biggest problem? Many insurance carriers have stipulations regarding commercial use of a vehicle.  In fact, not disclosing such use may result in the policy being dropped.  This becomes a reality when the driver is involved in an accident that results in a claim. 

Uber should seriously consider creating full coverage for their drivers actively using the app.  In other words, the entire time they are working.

The takeaway: If you ride as a passenger, you're probably OK. If you're a driver, or are considering becoming a driver for a ride-sharing service, contact your insurance broker before you sign on the dotted line.

Source: - Best Lawyers


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