Getting a ride somewhere has been made easier than ever thanks to ride-sharing programs such as Uber and Lyft. The apps are convenient, but what happens if you are in an accident? Who is responsible for the damages is the source of debate in Florida.
Uber states, “From the moment you are picked up until you are dropped off, you are covered under our commercial liability insurance, every trip in every city.” Uber and Lyft riders are covered under a one million dollar policy that covers riders. This is more auto insurance coverage than taxis or limos. They also have added uninsured and under insured motorist coverage.
According to The Insurance Journal, the Florida Office of Insurance Regulation, Deputy Chief of Staff, Monte Stevens said the Uber policy meets the state insurance requirements. So what is the problem?
“The uncertainty comes into play for drivers, when they are logged into the app but are waiting for a rider,” said Ellsworth Buck, Vice President of GreatFlorida Insurance. “During this period, a driver’s personal car insurance is responsible for damages. Unfortunately, many personal auto insurance policies would be likely to deny the claim because the driver is logged into the app, so it would fall into the commercial driving category. During that time Uber’s policy is “contingent,” leaving gray area.”
Many Florida lawmakers are arguing, “Is this considered a taxi service or carpooling service?’ The state is deliberating new insurance requirements and ride-sharing regulation. Uber is hoping to get the issues picked up in the special June legislative sessions but it is unlikely that ride-sharing will be addressed by lawmakers until the 2016 session.
If you are a ride-sharing driver, agents at GreatFlorida Insurance can make sure you get the proper coverage for you and riders. Contact us today to discover all the auto insurance and commercial insurance options available for you.