Rideshares are becoming increasingly popular services. This is in part due to the convenience of being able to summon a personal driver through the use of a smartphone app. Before you jump on the bandwagon, it’s important to know the risks of ridesharing.
First of all, the drivers of rideshares are not licensed chauffeurs. They are using their own vehicles for the service. This means that they are driving using their personal car insurance, which does not cover their cars for commercial use. This is problematic because rideshare drivers are basically at risk of being dropped by their insurance company, not receiving reimbursements for damage claims, and committing insurance fraud.
If you are the passenger of a rideshare and are in an accident, your claims may be denied. This means you’ll be responsible for paying your own medical bills if you are injured.
It’s also important to keep in mind that rideshare drivers are not subject to the state and local regulations that taxi and limousine services are – technically they are not required to have commercial car insurance policies.
Ridesharing is a relatively new service, although one that is growing quickly in popularity. Know that one of the risks of ridesharing is that there is no liability insurance to cover you in case you are injured while using a rideshare service. For more information about the ways we can offer advice regarding car insurance, be sure to contact us at CCW Insurance today.
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