Ride-hailing drivers and passengers need insurance legislation
The holidays are here and with them come the hustle and bustle of holiday parties, shopping and other festive activities. However, these activities can also bring the hassle of finding parking, navigating through traffic jams and other travel headaches as you simply try to get from point A to point B. To save time or just avoid having to find parking, many people skip the driving and consider ordering up a ride from a transportation network company (TNC), such as Uber or Lyft. But before you request a driver, it is important to be aware of the insurance implications.
The number of people using TNCs has exploded in recent years. Despite that growth, questions surrounding consumer protections and regulations, specifically regarding insurance coverage, remain.
Many TNC drivers believe that their personal auto insurance policy will cover them. However, this is almost never the case, as the majority of policies exclude coverage when a vehicle is being used for hire. This exclusion could leave the driver and passengers at financial risk.
As states tackle issues associated with TNCs, Uber, Lyft, auto insurers and national insurance trade associations such as the Property Casualty Insurers Association of America (PCI) have reached an agreement on legislation that addresses those insurance gaps.
Here in Florida, we support state Sen. Bill Galvano’s efforts to push forward legislation that protects the public and drivers and recognizes that a single, unified approach is needed in the state. As we shift our focus to the 2017 legislative session, we encourage legislators to work toward a cohesive and unified approach.
As many insurance companies have begun to create policies specifically for the unique needs of TNCs and their drivers, PCI’s goal is to make sure that TNC drivers and passengers are safe and can be confident that the right coverage is in place.
With this popular form of transportation here to stay, it is imperative that vehicles, drivers and passengers are properly insured and the public is protected. Model legislation has already passed in 40 states. It’s now time for Florida to do the same.