Odds are you’re familiar with the concept of ride sharing by this point in time, especially with ride sharing services such as Uber and Lyft increasing in popularity. However, how much do you actually know about the risks of ride sharing, specifically the insurance risks? The following are some of the things you should know about insurance for ride sharing:
- Basic ride sharing is known as carpooling. However, commercial services that provide ride sharing are known as peer-to-peer ride sharing. This involves a driver using their personal vehicle to provide rides; you request a ride via an app on your phone. The driver is automatically paid through the app, which requires your credit card information.
- The thing about ride sharing is that most insurance policies do not cover ride shares. In a normal accident, you simply share insurance information with the person you were in an accident with, and insurance should do the rest. However, most policies exclude driving for hire coverage. This exclusion could result in the removal of coverage for damage to your car, liability and medical payment coverage. What this means is that the driver of your ride share isn’t covered when providing rides for hire, which means that if you’re in a ride share during an accident you may not be covered by their insurance.
Keep these things in mind regarding insurance for ride sharing before using a ride share service. We invite you to contact us at CCW Insurance for information about buying auto insurance.