Does Our Sharing Economy Create New Risks?
It seems that in today’s world, we are using sharing our homes and cars with total strangers. The questions that need to be asked are; does this create new risks, and how do I make sure there is proper insurance place.
If you drive your personally owned auto for Uber, Lyft, or even a pizza delivery company, your personal auto insurance will not provide coverage should you be involved in an accident. Uber and Lyft do not provide the needed auto insurance coverage to protect you and your passengers. If you are an Uber or Lyft driver, your personal auto insurance will not cover this exposure. The reason your personal car insurance doesn't cover you is an exclusion for hauling others for a fee. This has always been excluded. It's just been in the spotlight again because of ride sharing services like Uber and Lyft and their mobile phone technology.
There are a number of insurance companies now offering specific auto insurance coverage for ride sharing risks.
Here are a few tips for ride share drivers
- Purchase a separate policy with at least a $1,000,000 limit.
- Read any and all agreements, so you know what your responsibilities are.
- Keep your vehicle in good working condition.
- Talk to your insurer before signing up and keep things on the up and up.