The App Committee of the International Association of Transportation Regulators (IATR) has studied the regulatory issues with ‘rideshare’ companies and has come up with an advisory alerting US regulators concerning insurance coverage issues raised by rideshare companies. Some of the concerns were:
– No 24/7 coverage: The insurance coverage for the ridesharing companies does not meet the ‘24/7’ requirements for commercial insurance in place for other for-hire vehicles.
– Insurance Regulator Alerts: Thirteen US states (and the District of Columbia) have issued consumer alerts in which insurance regulators have cautioned that the individuals who use their own private passenger automobiles to transport individuals for a fee, risk driving without proper insurance and/or having inadequate coverage for themselves, their vehicle, their passengers and third parties who may sustain personal injury and/or property damage.
– Litigation: Pending litigation against these rideshare companies have included insurance coverage issues when 1) the drivers’ insurance companies have sought declaratory relief that the policies did not provide coverage for damages from crashes when the vehicle was operating for a rideshare, or 2) the rideshare company has denied responsibility for a crash because the driver was not ‘on duty’ at the time.
– Insurance Company Actions: Insurance companies are also starting to address the issue of rideshare companies attempting to shift liability to a driver’s personal policy. A major insurance company now has an endorsement specifically excluding rideshare coverage.
The IATR App Committee will continue to monitor these insurance coverage issues and will issue additional advisories as needed.