As the growth in ride sharing programs begins to dominate what was the taxi business, a pertinent question emerges: If you are a driver for a transportation network company focused on ride sharing, and then someone sideswipes your vehicle, are you fully covered or not?
According to one expert, Othello Powell, GEICO director of commercial lines, “If you are driving for a rideshare company with a personal auto insurance policy, you might be taking a huge risk. Most personal auto policies were never designed to protect you or your vehicle for commercial purposes.”
A typical personal auto policy contains coverage gaps and limitations for ridesharing and package delivery. If an accident does happen with your personal auto policy, you have to provide your insurance carrier with specific details, including the phase of the ride you were in. Was the app on or off? Did you have a passenger or any packages in the vehicle? Depending on your answers, you may not have the coverage you thought you had.
One way to mitigate the downside is to replace or supplement your current personal policy with a designated rideshare and on-demand delivery policy.
GEICO, for example, has a ridesharing and on-demand policy now offered in 36 states and the District of Columbia.