Did You Know?
Your Personal MA Auto Policy Does Not Cover Ride Share Programs like Uber and Lyft.
Transportation Network Companies (TNC) such as Uber, Lyft, and SideCar, use a cell phone application to electronically “hail a ride” for a fee. While on-duty for the TNC, drivers have their cell phone application on awaiting a customer. Drivers are paid by the TNC for providing that ride.
Before you decide to use your car to make money, by driving for one of these TNC’s, make sure you understand the insurance issues involved.
Coverage Pitfalls of Ride Sharing:
• All Massachusetts personal auto policies have exclusions that won’t cover anyone injured while occupying your car while it’s being used as a public or livery conveyance. The policy also will not pay for Property Damage, Optional Bodily Injury, Medial Payments, Collision, Comprehensive and Underinsured Auto Bodily Injury.
• Whether or not a TNC driver has a rider in their car, if their app is on, they are considered “working” for the ride share program and they will be denied coverage for any incident that occurs.
• If driving for a TNC is your “job”, you aren’t eligible for a personal auto policy at all. The only policy which will cover you as a TNC driver is a Taxi/Limo/Car Service policy. The cost of this type of commercial auto policy is generally more expensive than a personal auto policy.
• If you enroll your car in a program like FlightCar, RelayRides or GetAround that loans out your car to others, your policy will not cover a loss if your vehicle is being rented out. Again, a business auto policy, most likely at a higher cost, would be needed.
If you’re thinking about putting your car to work for you or have already signed up for Ride Sharing, please give us a call to discuss your insurance needs. Our primary goal is always to make sure you are fully protected in the event of an accident.
McSweeney & Ricci Insurance Agency, Inc.