The reason why Uber and Ridesharing Drivers Require Different Insurance

The current landscape for Uber and other ridesharing companies is in the midst of rapid change. The field became a popular choice, so quickly, that legislation hasn’t really had the chance to adapt as of yet. This is something which happens across all new and quickly evolving industries, of course.

However , new laws are being put in place in several different locations, with other people surely to follow suit in the near future. You need to understand what’s taking place, and how it affects Uber drivers and their own need for insurance.

As of now, Uber drivers are left with only contingent coverage when they are driving along the way to pick up a passenger but do not have the passenger in the vehicle. This particular puts them in a precarious position, and many don’t understand that their personal car policies won’t cover this, and might in fact actually void their policy for it.
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At the same time, Uber’s contingent coverage may not kick in.

Therefore , ridesharing motorists need gap or hybrid insurance policies to fill in the blanks among when they’re operating their vehicle for personal usage and when they’re working in a commercial fashion.

California was the first state to pass legislation which usually mandates that drivers obtain their own commercial insurance policies, designed to fit that will unique need. California also a new new industry classification for Uber and ridesharing drivers and companies, TNCs, or Transportation Network Businesses. Colorado has its own TNC laws as well.

In the state of Fl, legislation is being passed on a local degree. Palm Beach Country just arrived at a temporary agreement to allow for the continued operation of Uber and other ridesharing companies, with a permanent agreement on the way which would also likely have an insurance mandate. Similar fights are taking place across the rest of the country as well, from your Washington, D. C. metro area, to Portland, Oregon, and assuredly many stops in between.

The most important thing is to make sure you’re fully educated plus informed about what’s happening. Misrepresenting to your personal auto insurance company what you do, or lying and saying you don’t rideshare, is not only illegal in most cases yet could also leave you at serious danger in the event of a major accident.

Speak to an insurance coverage expert in your local area who is aware of the current and upcoming legislation affecting your city, county and state. He or she should be able to get you moving in the right direction, and find you the right type of insurance coverage for Uber drivers and other ridesharing providers.

John Rothschild is the owner of ACI Insurance Services, a leading provider of Florida commercial auto insurance for more than 10 years. ACI is known for their customer care, their extensive experience and understanding of the industry, and their affordable prices, and they’ll do everything they can to satisfy the needs of their clients.

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