If you live downstate or have traveled to many places across the nation, you have been exposed to Uber and Lyft. Ridesharing is now expanding across the rest of our state. As you know, regular people with personal vehicles are signing up to provide rides to consumers who request them through one of the company apps.
Why is it important for you to understand ridesharing?
Because your clients, almost any of them, could start driving for one of these companies. Or even one of their kids could sign up with the parent's car.
Do they understand their personal auto coverage likely won't protect them?
Used to describe this whole category of drivers without a taxi/livery license & permit providing rides to consumers
Transportation Network Companies (aka TNCs)
These are the companies that drivers contract with to connect to consumers wanting rides. Uber and Lyft are TNCs.
How they're Covered (as of 6/14/17)
Through their Personal Auto Policy
Once they turn on their app to accept rides (Period 1) their personal coverage may not cover injury or damage.
It is important to note that this includes simply having the app engaged while they run personal errands. This is where a great deal of grey area exists.
Given the short time frame to implement ridesharing, the DFS by regulation made the TNC coverage provided for Period 1 (app on, no ride accepted) primary coverage until 1/1/19. This will give insurers time to file and get approval for their exclusion and/or coverage endorsements.
Through their TNC (aka Uber, Lyft, etc)
TNCs are required by NYS law to provide auto liability coverage for TNC drivers that are logged in to the digital network (Period 1 - $75/150/25 limit) and when they are on the way to pick up a passenger or have a passenger in the vehicle (Periods 2 & 3 - $1.25 million limit).
Uber will offer contingent comp and collision to their drivers who already carry that coverage on their personal auto policies. It is intended to replace the comp & collision under the personal auto policy that is excluded because of the ridesharing activity.
The Uber policy will have a $1,000 deductible and be effective:
- when an eligible driver accepts a ride request from a rider
- while on the way to pick up the rider
- through the conclusion of the ride until the rider is dropped off
We expect similar availability from Lyft based on their activities in other states, but have not confirmed yet.