Ride-sharing companies may be in trouble!
September 9th, 2014 by admin
There are a few reasons these companies costs less and taxi companies say ride-share companies cut corners, leaving passengers at risk. Ride-sharing is growing in popularity, people are drawn in by the ease of summoning a personal driver at the push of a button, but passengers need to consider what happens when things go wrong.
When individuals use their own private passenger automobiles to transport individuals for a fee, they risk driving without proper insurance and/or having inadequate coverage for themselves, their vehicle, their passengers and third parties who may sustain personal injury and/or property damage.
Typically, personal auto insurance policies exclude coverage for drivers using their personal vehicles as “public or livery conveyances,” that is providing rides to members of the public for a fee. In addition, the failure to disclose this use of the vehicle to the insurer may result in the insurer seeking to void the policy for misrepresentation.
Traditional share-the-expense carpooling or ride-sharing arrangements in which friends, neighbors, or co-workers share driving duties and the cost of gasoline are not considered commercial-type activities and are typically covered by individual insurance policies.