Beware of Using Your Car for Ride Sharing
You may have heard of a new type of transportation becoming increasingly popular - ride sharing. Ride-sharing is an activity facilitated through transportation network companies that connect passengers and drivers through smart phone apps and other Internet-based platforms. It may sound like a convenient way to connect those who would like to earn some extra income with those who are in need of a ride. However, all personal auto insurance policies (PAP) contain an exclusion for claims from a vehicle "being used as a public or livery conveyance". The language contained within the policy states that if you are using your car for this purpose, and there is a claim that results while involved in this activity, the claim may be rejected, leaving the driver open to a host of problems.
So, what would happen if the driver, passenger, or even a pedestrian is injured? What about the damage to the car or other property if there is an accident? If it is excluded by the insurance carrier, what about the ride sharing company? Ride sharing is a new practice and how insurance carriers and courts will respond to claims for the most part is still unclear. If you are involved as a driver in this type of service, it's best to talk about it with your agent.