With the introduction of ridesharing in New York, many are confused with coverage, who’s covered and when they’re covered. This confusion has brought upon several inquiries for when commercial and personal policy usage come into play.

If you have decided to make the venture into the ride sharing business in New York, there are a few important pieces of information you should know about where you’re covered and where you’re not.

Where you’re covered

  1. Ridesharing providers offer coverage for the time that the driver will picks up a passenger until they discharge the passenger at their destination.

Where you’re not covered under your personal auto policy:

  1. When the insured turns on the app for the rideshare company and makes themselves available for hire.
  2. When the insured accepts a fare and travels to pick up the fare.
  3. When the insured actually has the person in their vehicle and is enroute to dropping off the fare.

 

Most personal auto policies will not provide you coverage from the time you decide to pick up a passenger on the ride sharing login application until they actually arrive at the pickup destination.

While you drive to pick up a rider but before they get into your car, you are covered by our insurance policy for three things: 1) your liability to a third party, 2) any injuries due to an uninsured or underinsured motorist, and 3) collision and comprehensive coverage if you already have such coverage on your personal insurance.

In order to make sure your properly covered for ridesharing, it’s important to look through your policy with your insurance provider. Coverage is excluded under most personal auto policy for a ridesharing individual once the app is turned on. There will be no liability, PIP, physical damage etc.

Insurance companies have been breaking down what your policy would and would not cover, putting the drivers in charge to purchase additional coverage where there is gaps. Insurance carriers are not actively turning away ridesharing exposures, but are taking precautions as to who they underwrite. If you have any questions about coverage for ridesharing, please call us for clarification.

 

Click here to check out Uber’s policy.

Click here to check out Lyft Insurance Policy