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Ridesharing Services Are a Concern for Insurers, Regulators

The National Association of Insurance Commissioners continues to examine the issue of ridesharing services...
July 23, 2014

The National Association of Insurance Commissioners (NAIC) continues to examine the issue of ridesharing services. Concern is focused on insurance coverage for people who use their own private vehicles while transporting paying passengers for services like Uber and Lyft. The NAIC will host a seminar on ridesharing during its Louisville, Ky., conference in August. Here’s a report from A.M. BestTV.

App-based ridesharing services have generated much controversy in recent months. Ridesharing firms say drivers are covered by a $1 million insurance policy, which takes effect when the driver accepts a job until they drop off the passenger; but regulators are examining whether that is enough coverage for these drivers.

Some insurers offer commercial coverage for taxi and livery services, but they do not currently offer coverage for ridesharing. Insurance Information Institute (I.I.I.) Senior Vice President for Public Affairs Jeanne Salvatore says it is likely that specialized insurance products will be created for this specific need. Meanwhile, some ridesharing services have been defying state issued cease-and-desist orders.

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