As ridesharing becomes more popular as an alternative means of transportation, insures are finding themselves in a rock and a hard place. Some have been hesitant to offer polices.
According to Mark Maucere, senior vice president for AmWins Transportation Underwriters Inc. in the Indianapolis office, “Our rate for transportation classes is based on a point A to point B mechanism and the problem with these operations is we don’t know when the car is out or in the garage, we don’t know the experience of the driver, car maintenance or in what other ways it is used.”.
Rideshare services operate differently than traditional taxi and limousine services so fall under different categories for insurance coverage. There are many questions about whether or not passengers, drivers and even innocent bystanders would be covered in the event of a crash under this program.
These programs are more cost effective for consumers than taxi services. Most of the ridesharing companies use phone apps to connect drivers and paying customers.
“It’s a really interesting idea for a business because they’re using the internet and mobile apps to create a more efficient experience,” says John J. Fischesser II, an attorney withthe Pitzer Snodgrass firm in St. Louis.
There really is no black-and-white answer to most questions people have about ridesharing insurance. It varies greatly from company to company and state to state. If you are considering getting into this business, or using their services, it is best to contact the insurance company affiliated with the car and driver and find out what their current coverage is.