Ridesharing and Insurance

On June 29th 2017, ridesharing became law in parts of New York State.  Ridesharing is the use of your personal vehicle to provide pre-arranged trips to passengers.  Passengers request rides through the use of the ridesharing company’s mobile app.  Uber and Lyft are examples of popular ridesharing companies. 

But how does this affect your insurance coverage, and are you covered?   Current personal auto insurance policies specifically exclude this type of work.  You are NOT COVERED under your personal auto insurance policy.  

NYS Law requires that the rideshare company provide the primary coverage for these trips.  The coverage limits vary as follows:

·         While the driver is logged onto the digital network

o   Bodily Injury Liability $75,000 per person / $150,000 per accident

o   Property Damage $25,000

o   Uninsured Motorist $25,000 per person / $50,000 per accident

o   Personal Injury Protection (PIP) $50,000

·         While the driver is engaged in the prearranged trip

o   Bodily Injury Liability $1,250,000 combined single limit

o   Uninsured Motorist $25,000 per person / $50,000 per accident

o   Supplementary Uninsured Motorist $1,250,000

o   Personal Injury Protection (PIP) $50,000

 

These base coverages do not include Physical Damage coverage for your personal auto, No Comprehensive or Collision coverage.  Again, your personal auto policy, even if it has Comprehensive and Collision coverage is going to Exclude coverage for a claim while operating as a rideshare.   You should discuss and seek coverage through the Rideshare company. 

 

As more time passes, personal auto insurance carriers may develop endorsements for ridesharing coverage, but currently they do not exist in New York State. 



Posted Thursday, July 13 2017 8:34 AM

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