Through Their Personal Auto Policy
Once they turn on their app to accept rides (Period 1) their personal coverage may not cover injury or damage. It is important to note that this includes simply having the app engaged while they run personal errands. This is where a great deal of grey area exists.
Given the short time frame to implement ridesharing, the DFS by regulation made the TNC coverage provided for Period 1 (app on, no ride accepted) primary coverage until 1/1/19. This will give insurers time to file and get approval for their exclusion and/or coverage endorsements.
Through Their TNC (aka Uber, Lyft, etc)
TNCs are required by NYS law to provide auto liability coverage for TNC drivers that are logged in to the digital network (Period 1 - $75/150/25 limit) and when they are on the way to pick up a passenger or have a passenger in the vehicle (Periods 2 & 3 - $1.25 million limit).
Uber will offer contingent comp and collision to their drivers who already carry that coverage on their personal auto policies. It is intended to replace the comp & collision under the personal auto policy that is excluded because of the ridesharing activity.
The Uber policy will have a $1,000 deductible and be effective:
- when an eligible driver accepts a ride request from a rider
- while on the way to pick up the rider
- through the conclusion of the ride until the rider is dropped off
We expect similar availability from Lyft based on their activities in other states, but have not confirmed yet.