Transportation Networking Companies, such as Uber and Lfyt, provide pre-arranged transportation services for compensation by using a smart-phone application to connect passengers with drivers using their personal vehicles. This is commonly known as ridesharing and sort of takes the place of a taxi.
You should be aware that your personal automobile insurance policy may not provide coverage, and probably does not, while the vehicle is being used for ridesharing. Most insurance companies include in their policy an exclusion that applies when a vehicle is used to transport people or property for hire. If you are a Transportation Networking Company driver, you need to read your auto policy very carefully and contact your insurance agent.
The Transportation Networking Companies probably offer supplemental liability insurance to the driver while operating the vehicle as a “taxi”. However, this insurance more than likely does not apply to property damage to your vehicle. It would also probably not provide coverage for medical bills to you as the driver or to your passenger.
Do your homework before signing up with a Transportation Networking Company.
For parents with a college student – is your college student signed up as a “taxi” driver to make a little extra money? Perhaps you should check with him/her!
Henry Lowndes Jr, CEO