The Ride-Sharing & Insurance Q&A - Temecula Insurance Agency - Carver for Auto, Home, Life & Health

The Ride-Sharing & Insurance Q&A

The Ride-Sharing & Insurance Q&ARide-sharing is the preferred method of a taxi service for many people because of the convenience and its relatively low prices. 

Ride-sharing companies are taking a strong foothold in the taxi services industry by offering availability and relatively low prices when compared to traditional taxis. When it comes to insurance, however, things can get a little tricky. If you find yourself wondering about how auto insurance and ride-sharing work, here are a few questions and answers that should get you started on the right foot. Q: Why is ride-sharing getting so much attention from insurance companies? A: Insurance companies are paying attention to this kind of service because they are worried about the misconceptions that ride-sharing and auto insurance may bring–especially since this topic is new and discerning fact from fiction may be difficult. Q: Do ride-sharing drivers get covered by their personal auto insurance policy?  A: In a standard personal auto insurance policy, ride-sharing will not cover the ride-sharing driver. This isn't just for rider-sharing drivers; personal auto policies do not cover any business-driving-related accidents. In recognizing the coverage gap, policymakers have enacted the "app-on to app-off." This means they will be covered when the app is off and driving. Q: Do insurance companies oppose ride-sharing apps? A: No, but they want people to know and understand that personal auto insurance policies are excluded from coverage if they drive for ride-sharing customers, and these ride-sharing companies typically don't offer a form of insurance. This is why a few insurance companies in some states have developed insurance policies for drivers and their cars which they use for personal and ride-sharing operation. Ride-sharing isn't very straight forward, for more clarification on your commercial auto insurance we're here to help. Contact your local Mercury insurance agent Carver insurance for all of your insurance needs.

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