A.  Use of Ride Sharing Services- also known as Transportation Network Companies- such as Uber and Lyft, may be convenient to use and may seem like a good way to earn a few extra dollars.   However, drivers for these services as well as passengers should be aware of insurance gaps when using their personal autos to provide this service.  If you are new to the ride sharing craze, these services are an application which can be installed on a smartphone.  The application uses GPS technology to connect people requesting a ride with available drivers.  Individuals can apply to become drivers for these companies.

Potential insurance problems arise due to the fact that these drivers use their personal autos to provide the service, and rely on their personal auto policy for insurance protection.    Personal auto policies generally contain language excluding liability coverage for ownership or operation of a vehicle while it is being used as a public or livery conveyance; or while it is being used to carry persons or property for a fee.  They were not designed for vehicles being used for commercial purposes. 

Ride sharing companies provide liability coverage to their drivers, but only between the times they agree to pick up customers and when they drop them off.  After they drop off the customers and pull away, the ride sharing companies provide secondary coverage, though the driver is still on the app awaiting a ride request.   Confusion arises if a driver is in an accident during these times, and it can take time to sort out which insurance company is responsible. 

Look for more regulation from lawmakers in an effort to clarify and ensure safety with this new innovative service.   The insurance industry is addressing the matter as well by adding new policy language and exclusion forms.  This is sure to be a rapidly evolving area.  See the Ohio Department of Insurance link below for additional information.  Click here.