Many people use a smartphone app for ride-sharing as an alternative to taxi service. Passengers just summon a ride on the app and pay by credit card when they arrive at their destination, while drivers have a chance to earn some part-time income.
But there could be a catch. Most automobile insurance policies exclude coverage when you use your car for hire. This “insurance gap” has been the subject of a lot of legislation or regulation in most of the states.
Below are some information resources for those who would like to learn more.
- Ride-sharing and insurance: Q & A (III)
This link takes you to the Insurance Information Institute (III) website for “everything you need to know about coverage for TNC’s” in a question and answer format.
- Supporting Innovation; Closing TNC Insurance Gaps (APCIA)
This document from APCIA describes insurance gaps associated with ride-sharing and describes efforts throughout the country to address the issue.
- Five Things Every Rideshare Driver Should Know (APCIA)
This link takes you to the APCIA website for a list of questions that ride-sharing drivers should consider regarding their insurance coverage.