Article Courtesy: Trusted Choice
Over the last 10 years, ride-sharing has turned the global transportation industry on its ear. By mid- 2017, the largest companies in the space—Uber and Lyft—together were thought to be valued around $60 billion. As the growth continues, more attention is being directed toward the exposures posed by limitations in the drivers’ personal auto insurance policies, which were never intended for the commercial exposure of ride-sharing.
Many states have passed legislation designed to provide needed clarity for personal auto insurance companies, ride-sharing services and their drivers. And while not all states have such legislation on the books, there now exists a general consensus as to when the coverage under the driver’s personal auto insurance policy ceases and the commercial insurance offered by the ride-sharing service begins.