Are you or your family members Driving for Lyft, Uber of any other people transporting entity?
If you are in Massachusetts beware the EXCLUSIONS on your car and personal umbrella policies! They are frightening.
We want all of our clients, friends and families to know the real facts about their car and umbrella insurance coverage.
There is no doubt it these ride providing services are a huge convenience and provide many of us an affordable and convenient transportation alternative. Our family is definitely a fan! My nephew even turned in his truck and primarily commutes by Uber and Lyft. I do laugh when he says he will be late because of surge pricing!
If you are just getting those rides, you know the deal. If however you decide to be a driver for one of these entities, you need to review a few facts about your own car and personal umbrella insurance.
To keep this simple let’s just say that your car insurance policy does EXCLUDE coverage for the use of a private passenger car when you are a driver for one of these services.
Your Massachusetts car insurance policy says this:
“We will not pay any claim for injury or property damage under the policy, while your auto is being used in a personal vehicle sharing program. Such programs or the use of your auto by a person other than you or a household member under an agreement and with payment to you.”
If you have also secured your Personal Umbrella Policy for you and your family, you may or may not have a specific exclusion on your umbrella. All umbrella policies have different language. Here is an example of one exclusion:
We exclude coverage for use of a private passenger motor vehicle for ‘business” purposes by an “insured”. Coverage is excluded for damages arising out of ownership or operation of an “auto” while it is being used in a “transportation network platform” service.
We suggest that all Personal Umbrella Policy holders check with their agent on the related exclusion that may be on their policy.
This driving of others (even in your personal car) is just a business operation. There is a way to obtain insurance coverage for those of you working for Uber or Lyft. A business car insurance policy will take care of that for you. At Herlihy Insurance we could assist you with that as well.
These new services are fabulous. Now that we are using them, we need to check out the insurance part as well!
Transportation network platform
Ride sharing and insurance