Ride-Sharing & The Unknown Territories.
Let’s start with the breakdown of what ride-sharing actually is!
Ride-Sharing is the exchange of a ride for money without involvement of business... ie. a taxi service.
The next question is logical. How does the driver find the person needing the ride? There are apps that help facilitate people finding one another for ride-sharing.
With that said, where does insurance come in?
One HUGE problem with ride-sharing is insurance coverage... and the lack there of!
Many people ride-share and are unaware of the consequences they will attain in the unlikely event of an accident. There are two aspects to insurance when it comes to ride-sharing. 1- your personal policy 2- service policies provided for ride-sharing.
Things to consider with YOUR PERSONAL POLICY:
1- If you are involved in an accident and your ride-sharing app is in the ON position, there is a good chance that you will NOT be covered by your personal policy.
(if you are in an accident and the app is on because you forgot to turn it off...your insurance company won’t cover your accident. -ALWAYS TURN THE APP OFF WHEN NOT USING IT!)
2- Most insurance companies will not cover any damage or loss when your vehicle is used for any form of Ride-Sharing.
3- In the unlikely event of an accident when ride-sharing, expect your personal insurance rate to increase.
Things to consider with a Ride-Sharing Service Policy:
1- Ride-Sharing polices are set up with substantial gaps in coverage which leads the owner responsible for the damages.
2- There is no urgency when processing a claim due to the fact that the ride-sharing policy will be delayed in assisting while awaiting your personal policy to deny the claim.
3- Insurance limits vary and will possibly bellower than needed.
4- There is a chance less coverage is attained due to the fact that the app was in the ON position.
LISTEN- when it comes down to is, there are many dangerous distractions that come into play for a ride-sharing driver. Not only must the take the wheel and get you from point A to point B, they are also addressing the GPS, locating passengers and looking for the next ride to pick up all while navigating unfamiliar roads.
So as you can see, this can be a pretty dangerous endeavor. Play it safe if you are going to play the game. Check into your insurance and ask your agents questions about coverage if you choose to be a part of the Ride-Sharing Services. Make sure that the app is in the off position when you are not participating in the Ride-Sharing Service. Don’t be left in the dark on this...it could cost you BIGTIME!