![]() ![]() You can imagine that whether a driver is using the vehicle for the rideshare business or personal use could change in an instance and deciphering what the driver was doing at the time of the accident could be problematic. In response to this dilemma, the insurance industry has come up with products to cover the rideshare risk and has developed different coverages based upon the stage of use of the vehicle. Use of a personal auto as a taxi or livery vehicle is typically excluded in a personal auto policy by a “livery exclusion.” Therefore, the rideshare driver obviously needs supplemental coverage in order to cover any gaps. However, if an accident occurs while the rideshare driver is engaged in providing rideshare services in his or her personal vehicle, the driver’s personal auto policy may not provide coverage. The insurance needs of a rideshare vehicle differ from the typical taxi or livery in that the rideshare driver is usually operating a personal vehicle, which is used for both the rideshare business and for personal use. Collision and Comprehensive coverage may also be secured under a personal auto policy for damage to the vehicle itself, however, this coverage is not mandatory. ![]() Currently New York’s VTL requires $25K per person and $50K per accident of liability coverage for injury to third-parties, Uninsured Motorist Coverage in the same amounts and Personal Injury Protection (No-Fault) of $50K. You can also download the Certificate of Insurance on both the Uber and Lyft website for the particular State you are inquiring into.Īs a review of New York insurance requirements, New York’s Vehicle and Traffic Law (VTL) requires every owner of a motor vehicle to maintain minimum levels of insurance. Uber provides a color-coded map of the United States and designates the particular insurer that provides the insurance for that State. In March of 2020, Uber announced that it has teamed up with certain insurance carriers to provide coverage for its drivers and riders and this differs State to State. While this column focuses on New York law, we urge anyone handling these types of accidents in other States, to review their particular State’s requirements. ![]() Uber and Lyft have recently updated their insurance information which differs from what was previously reported by them, just earlier this year. However, companies such as Uber and Lyft continue to compete for their market share in the rideshare industry and all of these services have led to the evolution of new lines of insurance, to cover the various scenarios encountered when a vehicle is being used in those types of businesses. In fact, as a result of the Covid-19 pandemic, revenue from Uber’s food delivery business has surpassed its ride-hailing counterpart. Now more than ever, people are using food delivery services, such as Uber Eats, Instacart and DoorDash. ![]()
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