The Pennsylvania Insurance Department reminds consumers to understand their personal auto insurance policies before participating with any of the new ride-sharing services. Consumers may not understand their liability or risk exposure with Transportation Network Companies or TNCs, which connect passengers with drivers through an online or mobile phone application. Learning too late of gaps in insurance coverage can have serious financial consequences for participants in these programs.
Personal auto insurance policies typically exclude coverage while your vehicle is being used in a ride-sharing service, under what is commonly known as a public livery exclusion. While some TNCs may purchase coverage for their network of drivers, this insurance may not cover all costs, including those for which you may be liable, in the case of an accident.
- Check your personal auto insurance policy and make sure you see a copy of any commercial insurance policy held by the TNC to protect its drivers.
- Contact your insurance agent, broker or company to identify potential gaps in your personal automobile insurance policy and the TNC’s policy. Let your insurance company know of your intent to participate in the program.
- Make sure the commercial automobile insurance policy held by the TNC includes coverages required by law for medical benefits, bodily injury and property damage liability. Ask about the optional coverages for collision damage, or injuries caused by an uninsured or underinsured motorist.
- Be aware that any coverage to address these gaps should include the period before, during and the times when you are designated to drive passengers.
- Be certain you understand which insurance policy provides what coverage and when that coverage is triggered.
Consumers should also be aware that certain ride-sharing services or TNCs currently have commercial applications pending with the Pennsylvania Public Utility Commission.
Traditional car-pooling or ride-sharing arrangements in which friends, neighbors or co-workers share driving duties and the cost of gasoline are not considered commercial-type activities. These types of arrangements are not considered commercial-type activities and are typically covered by personal auto insurance policies.
For more information, please call E. R. Munro and Company at 1-877-376-8676 or visit our Web site at www.ermunro.com.
