You are here:HomeNews CenterInsurance News2014Regulators Warn Drivers About Ride Networking Mobile Apps

Regulators Warn Drivers About Ride Networking Mobile Apps

In at least 10 states, insurance regulators have warned consumers about new mobile apps that allow local drivers to receive cash by providing rides...
May 28, 2014

In at least 10 states, insurance regulators have warned consumers about new mobile apps that allow local drivers to receive cash by providing rides. Lyft, Uber and other ride networking mobile applications have begun offering services in Connecticut that allow riders to use their phones to pay with credit cards for rides that are usually less expensive than taxis.

On May 6, the Connecticut Department of Insurance issued a consumer alert, warning drivers who work for transportation network companies that they may not be covered by their personal automobile insurance policies when they collect fees for driving. Loretta Worters, spokeswoman for the Insurance Information Institute (I.I.I.), said that peer-to-peer car service companies should let their customers know that they are putting their personal insurance and perhaps their personal assets at risk.

Worters emphasizes the importance of car sharing service companies informing their customers that vehicles used as commercial ventures have to be covered with a commercial policy. According to Worters, holders of personal auto policies are required to inform their insurers of any changes to annual mileage and other factors involving their vehicles and that many insurers consider car sharing as a greater risk. She said questions about risk are not necessarily resolved, even when a ride networking site offers extra liability coverage.

Filed under: