Branford, CT., September 11, 2017 - As ride sharing, officially referred to as Transportation Network Companies (TNC), continues to explode in popularity, it’s natural for some of us to consider the option not just as a passenger, but as a driver to earn extra cash.  Earning extra income with flexible hours can seem tempting.  However, if you jump into the venture without the proper knowledge, you could potentially land yourself in a bad financial predicament. 
 

At V.F. McNeil Insurance, we don’t want this to happen to you.  Therefore, we’ve listed some key things to consider to help you protect yourself.   

Coverage Excluded – Your personal car insurance is likely to exclude coverage when you use your car for-hire.  In other words, if you get into an accident while logged into a TNC ride share app, your personal auto insurance company will most likely deny coverage.  Personal auto policies are not designed or underwritten to handle scenarios that involve commercial use of the vehicle.

• Grey Areas in TNC Insurance – Services like Lyft and Uber do offer hired drivers some supplemental insurance, but grey areas do exist that you need to be aware of.  Otherwise you may find yourself without coverage from both insurance policies.  It’s advisable to consult with a knowledgeable insurance professional who can review the company’s policy to identify what the gaps are.

• Non-renewal of Insurance – Some insurance companies may not renew your insurance policy if they find out your car is involved in ride sharing, which could leave you without auto insurance all together.  It could also make it difficult to secure auto insurance with any other company due to the non-renewal.  

• Options for Protection Vary by State & Insurance Company – Some insurance companies are developing options for ride sharing that they plan to file for approval.  Some of these specialty policies or endorsements to personal auto policies aim to bridge the gaps in coverage that exist with insurance provided by ride sharing companies to hired drivers.  Not all insurance companies will offer rideshare insurance nor is it available in all states.  Some will need to consider a commercial auto policy to be properly protected.  

• Seek Sound Advice – To determine what you need for your individual circumstances, you may consider consulting with a Trusted Choice® independent insurance agent to gather sound advice.  Trusted Choice agents have access to multiple insurance companies.  They also review coverages from many different insurance companies daily and are often licensed in multiple states.  They have a vast knowledge of coverage options and could serve as a great resource.

At V.F. McNeil Insurance, a local Trusted Choice® agency, we can work with you to make sure you've got the coverage you need.  Simply contact our staff at 203.481.2684 or send us a note at Contact V.F. McNeil if you have any questions about this public service announcement. We want to help you meet your goals and make sure you are properly protected!