Why Ride-Sharing Is It Getting So Much Attention From Insurance Companies?

Before we answer this question that why insurance companies are taking so much of interest in ridesharing, you need to know what exactly ride-sharing is?

In actual, ride-sharing companies provide kind of taxi services by linking passengers to drivers thru a smartphone app.

Rides can be booked easily in advance or on short notice through the app on a reasonable price.

The “official name” for a ride-sharing business is a Transportation Network Company or TNC.

uber drivers

TNCs signs a contract with drivers who use their private vehicles to transport passengers. Consequently, numerous drivers who work for TNCs do not have a livery driver’s license.

Neither their cars are registered nor insured as commercial vehicles. But recently, after Government’s pressure Uber Sign up Bonus and Guarantee in December 2017, along with a reliable vehicle and drivers insurance.

These cab drivers need to get insurance more than ever because they are distinct from limousine or taxi drivers, who use a commercial vehicle. Above all, they are already insured with the commercial insurance coverage.

Insurers, as well as insurance regulators, are deeply concerned about the fallacies related to the use of personal auto policies by TNC drivers.

Personal auto insurance policies are not specifically designed, underwritten or assessed for commercial ride-sharing; undeniably, they usually exclude “livery services.”

This is the reason why Uber driver requirements are being considered seriously by the owners.

Uber driver insurance

Like any conservative taxicab companies, TNCs are profitable enterprises. So, in order to have coverage, TNC drivers genuinely require commercial insurance coverage, just like taxi and livery car drivers.

It would be better if you will read the entire post, which recently got published on one of the popular news sites about The risk of rideshare deception, you will get relevant answers to your queries.

Commercial auto insurance policies generally carry higher liability limits. They are also underwritten with the recognition that commercial vehicles travel more miles than private-passenger cars, and that the passengers in a TNC vehicle are customers, rather than friends or family members.