Insurance and transportation network company
As the nice weather returns to the Northeast, it might be time to think about insurance, at least for a few minutes, especially if you plan on using transportation network company apps like Uber or Lyft this summer. Whether you are driving for a TNC or simply riding as a passenger, it is important to be aware of the insurance implications of using this service while traveling. Typically, a personal auto policy contains an exclusion of coverage when a person engages in a commercial activity with his or her vehicle, which is called a livery exclusion. This obviously creates a very serious issue as under normal circumstances the only coverage people have when driving their vehicle is from their PAP.
The largest TNCs offer drivers, who are not engaged in a prearranged ride, coverage in the amount of $50,000 for death or bodily injury per person, $100,000 for death or bodily injury per incident, and $25,000 for property damage. Note that this coverage is in place only if your PAP does not provide coverage.
When a driver is engaged in a prearranged ride, the limits increase to at least $1,000,000 for death, bodily injury and property damage. The TNC also provides $1,000,000 for uninsured/ underinsured motorist coverage. As long as a TNC driver has personal collision or comprehensive insurance, the TNC policy covers physical damage that occurs during a trip and is subject to a deductible.
If you plan to drive or even simply ride with a TNC, we encourage you to know about your coverage. If you have question, give our agency a call. We’ll be happy to review your policy and ensure you have the proper coverage in place.