Sound Advice – Rideshare
Rideshare officially comes to Long Island
As of June 29, 2017, ridesharing through Transportation Network Companies (TNCs), like Uber and Lyft, is coming to our area. If you’ve traveled outside our state, you already know that regular people are using their personal vehicles to provide rides to passengers who request one through the TNC’s phone app. And a growing number of drivers are signing up to supplement their incomes by providing rides through these TNCs.
But there are a number of serious considerations before one rushes out to sign a contract, not the least of which are the auto insurance ramifications. For example, in New York, you can’t always count on your personal auto insurance to cover you for injury or damage if you are a TNC driver. What’s more, as soon as you turn on the app, whether you are doing errands or driving your kids to school, you are considered “on the job” by the insurance companies, and so, not their responsibility.
TNCs are required under NY state law to provide auto liability coverage for their drivers that are logged in to their digital networks (with 75/150/25 limits) and when they have a passenger in their vehicle (1.25 limit). Recently, Uber has announced that it will offer contingent comp and collision coverage to their drivers who already carry that coverage on their personal auto policies. It is intended to replace the comp and collision coverage that is excluded on account of the ridesharing activity. It also has a $1000 deductible and is in effect only from when a ride request is accepted until the passenger is discharged at their destination. We expect that any other TNC who wants to operate in New York, will follow suit.
If you or a member of your family is seriously considering signing a contract to drive for one of these TNCs, please contact us first at 631-727-4114. We want you to be properly protected and there may be some gaps to be filled in your protection. If you have already signed up, don’t delay. Contact us today for a review of your risks.