Main/Knoxville:  (865) 588-7000
Nashville:  (615) 557-4296
(800) 588-7001



Maybe it's new to you or maybe it's not... but there is a new phenomenon of drivers using ridesharing apps, like Uber and Lyft. They are basically an on-demand taxi service connected to your smart phone. There are exposures that not only the drivers, but also the patrons should be aware of. The smart phone app connects drivers for hire with customers in need of a driving service.

Although Uber's website tells drivers that they must have a "Personal Auto Policy" to be a part of the organization, the "Personal Auto Policy" insurance form on many insurance companies explicitly excludes coverage for anyone involved with a Transportation Network Company (TNC), which is a fancy name for ridesharing programs. What that means for the ridesharing driver is that if an accident did occur where a passenger is hurt, damaged property, or even killed, the driver's personal policy may not pay for the damages or injuries. That would leave the driver being in the hot spot for a lawsuit and the passenger or driver on the hook for paying for injuries or damages.

According to the Tennessee Department of Commerce and Insurance's Commissioner, Julie McPeak, "The Department wants Tennesseans to know that most standard auto insurance policies contain exclusions for livery or driving for hire." She continues, "These gaps can leave individuals in insurance limbo without the coverage needed to protect their vehicle and passengers in the event of an accident." The personal auto policy is not developed or priced to properly cover the exposure of a ride sharing application. These ridesharing apps put the driver, passengers, and the vehicle in a greater rate exposures than is typically associated with a standard personal auto policy.  

Since this is new territory for insurance companies, there might be changes to the policy language over the next few years. Plus, there are many legulations in other states that are up in the air and may affect how Tennessee views ridesharing, but right now, it's a shaky ground to drive on.
Share |


No Comments


Post a Comment
Name
Required
E-Mail
Required (Not Displayed)
Comment
Required


All comments are moderated and stripped of HTML.
Submission Validation
Required
CAPTCHA
Change the CAPTCHA codeSpeak the CAPTCHA code
 
Enter the Validation Code from above.
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive


View Mobile Version

   
         Main Office:   9700 Westland Dr, Suite 102, Knoxville, TN 37922
Nashville Office:   c/o Industrious, 1033 Demonbreun St, Suite 300, Nashville, TN 37203
 
This website is intended to stimulate dialogue about your protection and does not alter or interpret your insurance policies. Always refer to your policy for details about your coverage.