Ride-Sharing and Vehicle-Sharing

In the last year, there has been a flurry of activity related to the use of personal autos in the sharing economy. Services, such as those offered through Uber, Lyft, Getaround, and RelayRides, that enable the peer-to-peer sharing of rides and vehicles have popped up across the nation. While these transportation apps are becoming increasingly popular, they are also controversial as it relates to insurance coverage. Many personal auto insurance companies classify participation in these services as a commercial exposure that should not be covered by your personal auto insurance policy.

Each insurance company has a different approach to claims from drivers participating in these programs. Oftentimes not only is a loss excluded when a rider is in the vehicle being transported for a fare, but also if the insured driver is in transit to pick up a rider, when the insured driver is logged into an online application waiting for a rider request, or if the vehicle is parked and waiting to be picked up by a renter.

Before participating in any of these programs, it is recommended that you contact your insurance agent to discuss how your individual company handles the usage of personal automobiles for programs like these. For additional information, please contact Purdum Gray Ingledue Beck at 309.833.1755.