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Are You Covered? Insurance Issues with Unlicensed Cabs

Lyft, Uber and Sidecar are unlicensed taxi cabs.  Licensing regulations in the taxi industry require commercial insurance to protect passengers, drivers and the public.  These companies argue that they are not subject to taxi licensing requirements because they do not provide transportation services; they provide a network which connects drivers and passengers.

When you download apps from these companies, you agree to hold them harmless for anything that happens on the trip.  These companies have liability coverage policies, but there have been several instances of accidents where they deny coverage to drivers, passengers, and in one horrific case, a pedestrian who was hit and killed by one of their drivers, who had previously been arrested for reckless driving.

Individual insurance policies (like we all have on our personal vehicles) do not and will not cover “for hire” transportation.  That means that if you are in an accident as a passenger in one of those vehicles, you will not be covered for injuries or other losses.  If you are a driver, your personal insurance will not cover any costs incurred and will likely cancel your policy.

Several states (12 at last count), including Tennessee, have issued consumer warnings about the insurance coverage gaps with these companies.

For more information about insurance issues with ridesharing companies, visit the “Insurance Gaps” section on the “Who’s Driving You” website.



By: Deborah Crawford On Friday, 16 May 2014 Comment Comments( 0 ) Hits Views(159908)