Ridesharing

TERMINOLOGY.

Ridesharing

Used to describe this whole category of drivers without a taxi and/or livery license or permit, providing rides to consumers.

Transportation Network Companies (aka TNCs)

The companies that drivers contract with to connect to consumers wanting rides, e.g., Uber and Lyft.

HELPFUL TOOLS.

How Your Clients are Covered

Once a driver turns on the app to accept rides (Period 1), the personal policy may not cover injury or damage, even if the driver has the app engaged while running personal errands.

New York Insurance Regulation 35-E (11 NYCRR 60-3.7(c)) states that, when a TNC driver’s personal insurance does not provide liability coverage, a group insurance policy maintained by a TNC must provide liability coverage “beginning with the first dollar of a claim and the insurer shall have the duty to defend such claim.”

Personal Auto Insurers Offering Ridesharing Coverage in New York (as of Dec. 1, 2019)

Allstate
American States, a member of the Liberty Mutual group
Esurance

Liability Coverage

TNCs are required by New York State law to provide auto liability coverage for TNC drivers that are logged in to the digital network (Period 1 Limits – $75,000 per person/$150,000 per accident for bodily injury; $25,000 per accident for property damage) and when they are on the way to pick up a passenger or have a passenger in the vehicle (Periods 2 & 3 Limit – $1.25 million combined single limit for bodily injury and property damage).

Uber and Lyft offer contingent comprehensive and collision coverages to their drivers who already carry those coverages on their personal auto policies. It is intended to fill the gaps created when the personal policy excludes comprehensive and collision coverages during ridesharing activity. The deductibles are $1,000 for Uber and $2,500 for Lyft. Coverage applies: