Car Sharing – What you need to know. . .

Transportation Networking Companies (TNCs) like Uber and Lyft have been growing in popularity in the Philadelphia area. There have been a lot of news reports in the newspapers, radio, and television about the Philadelphia Parking Authority’s response to these companies. TNCs provide pre-arranged transportation services for compensation by using a smartphone application to connect passengers with drivers using their personal vehicles. This is commonly known as ridesharing.

Our purpose here is not to weigh the merits of these TNCs. Our purpose is to make it clear to our clients that your personal auto policy and personal umbrella policy provides no coverage for losses that occur in connection with TNCs.

If you choose to become involved with a TNC then you must make sure you obtain the proper auto coverage to protect you and your passengers from lawsuits and your car from collision or comprehensive losses. While some TNCs have taken steps in the right direction to cover their drivers during rides, you need to make sure these policies have the limits you need. It is imperative that you require them to provide this coverage as coverage on your own could be very costly.

Here are some questions to ask:

  • Are my passengers and I covered for injuries that occur when I am driving for the TNC?
  • What are the liability limits on their policy?
  • Is there Uninsured Motorist and Underinsured Motorist coverage in case I am involved in an accident with an uninsured driver or involved in a hit and run accident?
  • Is my vehicle covered for collision and comprehensive losses? What is my deductible?
  • Is there coverage for Property Damage I cause while driving for a TNC?
  • When does my coverage become effective? Is it primary coverage?

If you are considering participating in this type of venture I would suggest you have an attorney review your contract with the TNC. Call us with any questions in regards to your insurance coverage.


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