Thinking about being a rideshare driver and using personal insurance: think again

The 2016 ‘Rideshare’ law in Pennsylvania law sets insurance standards, fee, and licensing requirements for the companies, and inspection standards for the drivers.

Personal auto insurance is not sufficient. Drivers need to carry insurance that recognizes they drive for a transportation network company (TNC) such as Uber or Lyft.

When drivers are logged into the ride-hailing network (even if they do not have a rider), they are providing a commercial service, which is not covered by personal auto insurance. The law clearly states that drivers must inform their insurance company of any work for hire.

While TNCs typically offer commercial coverage, the problem is it may not be primary automobile liability insurance as required by the law. Plus there can be high deductibles.

So, before picking up your first passenger, be sure you’re properly insured:

• Be familiar with the coverage provided by the rideshare company. Since this coverage has strict guidelines, have your insurance agent review the coverages and explain what you need to do.
• It could be a huge mistake to take insurance advice from other rideshare drivers, particularly anyone who tells you how to “beat the insurance company.”
• If necessary, have your insurance agent explain the differences between your personal insurance and your rideshare coverage so you don’t put yourself or a third-party passenger at risk.

Since ridesharing is a new industry and insurance companies are feeling their way, have your insurance agent update you regularly on changes and updates from your insurance company.