Anita works as a rideshare driver, affiliated with a well-known Transportation Network Company (TNC), and operates exclusively in Nassau County, situated outside of New York City. One evening, she’s involved in a substantial car crash while ferrying a customer to a dining establishment. Everyone involved suffers minor injuries, requiring medical treatment.
Sadly, Anita was relying solely on her personal vehicle insurance, which has limitations of $25,000 per individual for medical expenses and a total of $50,000 per accident. With three individuals requiring medical care, the total expenses amount to $90,000, leaving Anita liable for the remaining $40,000 not covered by her insurance. Had she been insured with a specialized ridesharing policy, she would not be facing potential financial ruin.
Rideshare insurance functions as a form of commercial auto coverage, similar to the insurance needed by delivery drivers or taxi operators. Depending on your jurisdiction, it can be an add-on to a personal auto insurance policy or a standalone commercial policy.
Anyone who works as a driver for ridesharing platforms like Uber or Lyft needs this specialized insurance. In New York City, the same rules that apply to taxi and limo drivers also govern rideshare drivers, including minimum insurance requirements.
In NYC, regulations from the Taxi & Limousine Commission (TLC) dictate that all rideshare drivers must possess both TLC license plates and a TLC-issued driver’s license. Furthermore, rideshare drivers are required to carry commercial auto liability insurance with coverage limits of $100,000 for individual bodily injuries, $300,000 for total injuries per accident, and $100,000 for property damage.
It’s important to note that the insurance only applies when you are active on the ridesharing app and engaged in commercial activities. Once you log off, your rideshare insurance becomes inactive, and only your personal auto insurance applies.
Although rideshare insurance is generally applicable without geographical limitations, specific rules and minimums may apply depending on whether you operate within or outside of NYC.
Ridesharing has dramatically altered traditional modes of public transport and, in turn, has influenced insurance norms. Regulations can differ from state to state and even city to city, especially in large metropolitan areas like New York City where ridesharing is not just a gig but often a full-time profession.
Before you begin your career as a rideshare driver based on the advice of an out-of-state friend, consult an insurance expert. Understanding the complexities of rideshare insurance is essential to ensure that you are adequately covered for any eventuality.
Ridesharing is a commercial endeavor that necessitates suitable insurance coverage. The best way to navigate this complex landscape is to consult a certified insurance agent in the area you plan to operate. They can guide you through the process, helping you secure the insurance coverage that safeguards you against potential risks.
