Are you driving for Uber or Lyft?

We are all in for you making some extra cash. But, we don’t want you to lose what you earned, and perhaps much more should you get into an auto accident. Insurance protection while “Ubering” is not a given without careful evaluation of your current auto insurance policy.

The New York Transportation Network Company law, effective June 29, 2017, will impact the insurance coverage you can expect, since it permits insurers to add specific liability exclusions for a vehicle’s TNC use. The law states that a TNC vehicle is not a “public or livery vehicle” (which is already excluded in the policy), but insurers are permitted by regulation to exclude them. However, without a specific TNC exclusion, insurers are obliged to insure them because the “public or livery conveyance” exclusion in the auto policy is ineffective.

Since the effective date of the law gave insurers such a short time to prepare their filings in advance, it may be months before these filings are approved and added to personal auto policies upon renewal (a delay that somewhat benefits you). This is why TNC group policies are required by regulation to provide primary mandatory coverage for all phases of TNC use until July 1, 2019, when it is expected that TNC coverage options will have been implemented by insurers. However, mandated coverage does not include comprehensive and collision coverage for the driver’s car.

For example:

• While on a prearranged trip, Uber has stated that it will provide its drivers with liability and supplementary uninsured/underinsured motorist coverages in the amount of $1.25 million, personal injury protection benefits in the amount of $50,000 and contingent comprehensive and collision coverage subject to a $1,000 deductible.
• While drivers are merely logged in, Uber will provide them with minimum limits for liability and uninsured motorist coverages, along with the required personal injury protection benefits in the amount of $50,000. There is no comprehensive and collision coverage provided for the driver’s vehicle when it is just logged in to drive.

While the TNC does provide drivers with some protection, you are going to need to amend your auto policy with specific coverage if you do not want to suffer any coverage gaps. Call our agency to get a “Lyft” up to better policy protection.