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Haylor Risk Management Blog

Ridesharing & Insurance FAQ's

Posted by Risk Management Team on Jun 30, 2017 1:57:32 PM

Ridesharing became law on June 29, 2017

What is “Ridesharing”?

  • Ridesharing is the use of a personal, non-commercial, privately owned vehicle to provide pre-arranged trips to passengers. Passengers request rides through the use of a  Company’s app.
  • Rideshare companies are licensed by the DMV to use a digital network to connect passengers to  drivers for prearranged trips. Uber and Lyft are examples of popular Rideshare companies

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The Driver

  • A Rideshare driver is someone who uses their personal, non-commercial vehicle to provide pre-arranged trips through an app which is connected to the companies digital network.

Will Your current Insurance provide coverage for Rideshare Drivers?

  • No. At this juncture Insurance Companies  will continue to exclude all coverages under the policy for any losses that occur while the  Driver is logged onto the digital network and/or engaged in a prearranged trip.

Who must provide insurance for the Driver?

  • NYS law requires that the rideshare company provide primary coverage through a group policy for Rideshare drivers. Drivers are able to obtain their own insurance but must meet the same insurance requirements as the company is required to provide. Coverage must be provided during the following two phases:
  •  (Phase 1) While the  driver is logged onto the  digital network; and
  •  (Phase 2) While the  driver is engaged in a pre-arranged trip.
  • It is the responsibility of the Rideshare Companies to make sure that their Drivers understand and have the required insurance.

What are the required minimum limits of insurance?

Phase 1 (logged onto network, not engaged in a pre-arranged trip)

  •  Bodily Injury Liability: $75,000/$150,000
  •  Property Damage: $25,00,  
  • Uninsured Motorist: $25,000/$50,000  
  •  Personal Injury Protection: $50,000

Phase 2 (engaged in a pre-arranged trip)

  • Bodily Injury Liability/Property Damage, Combined Single Limit: $1,250,000
  •  Uninsured Motorist: $25,000/$50,000
  •  Supplementary Uninsured Motorist: $1,250,000
  •  Personal Injury Protection: $50,000

Will the Driver’s personal automobile policy provide coverage?

Your personal auto policy does not provide coverage while you are engaged in rideshare activities.  You should seek coverage from the rideshare company.

 

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Is there Physical Damage Coverage?

You should seek coverage from the rideshare company for physical damage coverage.

If an accident occurs while an insured is engaged in rideshare activity, where should they go for assistance?

  • Contact the insurer of the rideshare group policy for all accidents that occur during rideshare activities.

Is there an age and licensing requirement to be a  driver?

  • Yes. NYS  law requires that drivers must be at least 19 years old and hold a valid and current NYS driver’s license issued by the NYS DMV.

Are there any other requirements to become a  Driver?

  • Yes. The NYS DMV requires that the rideshare company conduct a criminal history background check along with a review of the applicant’s driving record. They must also verify that the applicant’s vehicles are properly registered and inspected. 

If you have any quesions, please contact Sheila Guenette at sguenette@haylor.com 

Additional Resources that can provide information:

IIABNY (Independent Insurance Agents & Brokers of New York)

Department of Motor Vehicles