Rideshare services such as Uber and Lyft are recruiting amateurs and college students to be driv- ers. Considered to be the “per-fect part-time solution” for students and
part-timers according to a recent post on
an Uber newsroom blog.
And some drivers are using their personal auto policies to falsely insure commercial activities. This is the new risk: drivers who are insuring their vehicles with
personal auto policies and not advising
their carriers of their rideshare activities.
And they’re openly sharing advice on
how to get away with it with fellow drivers.
How it started
The ridesharing concept has skyrocket-
ed since its inception in 2009. They offer
lower rates than licensed taxis through
the use of the drivers’ personal vehicles,
escaping most commercial regulation.
Uber is the largest network. According to
Fortune, as of October 2016, it had over 40
million riders and 160,000 drivers. They operate in 528 cities and 60 nations worldwide.
However, with most personal auto policies, ridesharing can trigger a livery exclusion. Driving for profit creates greater
risks. The cars drive higher miles. More
unfamiliar areas are traveled. Increased exposure to multiple, unknown passengers.
With this new risk, carriers are paying
costly injury and property claims because
some drivers aren’t revealing their rideshare employment. And the drivers are
warning their peers through chat rooms
and social media.
According to a November 2016 Reddit
blog, a contributor advised:
“Don’t let your insurance company know
that you’re driving for Uber. They did not
underwrite the policy for that, and they’ll
want you to pay for extra coverage…”
A Business Insider article posted re-
sults from rideshare drivers:
• 92 percent of the drivers hadn’t told
their personal carriers about their jobs.
• 72 percent of the drivers were not
familiar with the details of the rideshare’s coverage.
Carriers, agents and underwriters need
The Risk of Rideshare Deception
By Richard Wickliffe, CPCU, CLU, ARM