Columbia, S.C. – July 11, 2014 – With ride-sharing company UberX announcing their entrance into South Carolina, potential passengers and drivers have a number of factors to consider before the first ride.
“Ride-sharing and transportation networks can have significant impacts on automobile insurance coverage,” said Russ Dubisky, executive director of the South Carolina Insurance News Service. “Most personal automobile insurance policies contain exclusions for losses when an individual uses their personal automobile for livery (hired vehicle) purposes.”
This means that many UberX drivers may not have insurance to cover any liability, injuries, medical payments, and/or property damage if they cause an accident. The drivers may have to pay these costs out of pocket.
The S.C. Insurance News Service encourages individuals who are considering using ride-sharing services (as either a driver or a passenger) to contact their insurance company or agent and find answers to the following questions:
• Will your existing insurance policy cover damages incurred while you’re engaged with this service?
• For drivers, especially those with a lien on your vehicle, will your insurance cover any property damage that is incurred while you’re engaged in this service?
• If your personal automobile insurance policy excludes coverage, should prospective drivers purchase a commercial policy, even if the ride-sharing carrier has excess coverage?
• Are there policies available to protect potential passengers, such as a “non-owned” vehicle policy, which would provide the needed coverage in case the driver has a gap in coverage?
For more information from the S.C. Insurance News Service, or to schedule an interview, call (803)252-3455.
For over 35 years, the South Carolina Insurance News Service has been providing free insurance information to consumers and the media about property and casualty insurance issues.
For more information, contact the South Carolina Insurance News Service at 803-252-3455 or use our contact form.