07 Sep 2016

Ridesharing Drivers Need Different Insurance

The current landscape for Uber and other ridesharing companies is in the midst of rapid change. The field became so popular, so quickly, that legislation hasn’t really had the chance to adapt as of yet. This is something which happens across all new and quickly evolving industries, of course.

However, new laws are being put in place in several different locations, with others surely to follow suit in the near future. It’s important to understand what’s taking place, and how it affects Uber drivers and their need for insurance.

As of now, Uber drivers are left with only contingent coverage when they are driving on the way to pick up a passenger but do not have the passenger in the vehicle. This puts them in a precarious position, and many don’t understand that their personal auto policies won’t cover this, and may in fact actually void their policy for it. At the same time, Uber’s contingent coverage may not kick in.

Therefore, ridesharing drivers need gap or hybrid insurance policies to fill in the blanks between when they’re operating their car for personal usage and when they’re operating in a commercial fashion.

California was the first state to pass legislation which mandates that drivers obtain their own commercial insurance policies, designed to fit that unique need. California also created a new industry classification for Uber and ridesharing drivers and companies, TNCs, or Transportation Network Companies. Colorado has its own TNC legislation as well.

In the state of Florida, legislation is being passed on a local level. Palm Beach Country just reached a temporary agreement to allow for the continued operation of Uber and other ridesharing companies, with a permanent agreement on the way which would also likely have an insurance mandate. Similar fights are happening across the rest of the country as well, from the Washington, D.C. metro area, to Portland, Oregon, and assuredly many stops in between.

The most important thing is to make sure you’re fully educated and informed about what’s happening. Misrepresenting to your personal auto insurance company what you do, or lying and saying you don’t rideshare, is not only illegal in most cases but could also leave you at serious risk in the event of a major accident.

Speak to an insurance expert in your local area who is aware of the current and upcoming legislation affecting your city, county and state. He or she should be able to get you moving in the right direction, and find you the right type of insurance for Uber drivers and other ridesharing providers.

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08 Aug 2016

Insurance With LYFT and Uber

Many people assume that they are insured by Lyft and Uber, or that their personal car insurance will cover them in the event of an accident while they are driving. In reality, the insurance provided by rideshare companies like Lyft and Uber is not what it seems, and the lack of information provided about this coverage leaves many drivers in the dark.

While you are driving with either of these companies, the coverage is dependent on a couple of variables. Basically, your status is broken up into three separate categories, which we will refer to as period 1, period 2 and period 3.

Period 1: You are driving around with the Uber or Lyft app open, but have not yet been matched with a passenger. During this period you have contingent liability coverage with Uber and Lyft. Contingent liability coverage means that if you are in a collision, you will first have to make a claim with your personal insurance provider, and only if that claim is denied will the insurance from Uber and Lyft kick in. When it does kick in, it is only liability insurance, you will not be given collision or comprehensive coverage. The limits of this of contingent coverage are 50/100/25, which will not be enough to cover you for a bad accident.

This is problematic because driving for a rideshare company is considered a commercial activity, and no personal insurance policy will cover you for this type of activity. Personal insurance policies will deny most claims placed during period 1, and lately they have been investigating many of these claims. Furthermore, they are likely to cancel your insurance policy after such a claim is made. This leaves drivers in a vulnerable position, as Lyft and Uber cover liabilities to the extent of their policy limits, but all vehicle repairs would come out of the pocket of the driver.

Period 2: When you have been matched with a rider and are on your way to pick them up. During this period you are covered by the $1 million liability policy that is offered by Lyft and Uber. There is also a contingent collision and comprehensive policy offered by Uber and Lyft during this period, but the process for filing under this coverage remains the same. You have to first file the claim with your own insurer, which could result in policy cancellation, and only then will Uber and Lyft step up. There is also a deductible under collision and comprehensive policies for both of these companies. For Uber you must pay a $1000 deductible, and for Lyft you must pay a $2500 deductible.

Period 3: When you have picked up the passenger, the entire period of time that the passenger is in the car until drop off. Coverage provided by Lyft and Uber is identicle to their coverage under period 2.

You should never drive for Lyft or Uber without your own personal coverage, as their policy is contingent upon you having this coverage. There are some insurance companies offering a rideshare insurance policy for drivers. Policies differ from state to state, but are not much more expensive than your average policy. Such a policy is strongly recommended for anyone looking to mitigate the risks of driving with Lyft and Uber.


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08 Aug 2016

Cheaper Insurance In Arizona Because of RideSharing

Nothing in your car insurance policy in Phoenix, AZ is going to jump out at you and tell you how to make those premiums go down. But something that does jump out at you are those fluorescent flyers you’ve probably seen at your job-Rideshare Wanted. Have you ever considered replying to one of those flyers? It may seem like an inconvenience to ride with someone else to work. After all, everyone knows that getting a little me time in the car is one of the pleasures of driving-listening to your own music, having time to think, sipping your coffee and trying to wake up for work. Would you be willing to give a little bit of that up, though, if you knew it could save you a considerable amount of money on gas, car insurance, and car repairs?

With gas prices so unpredictable in Phoenix, AZ, many people are finding that rideshare can save them cash because of using less gas. It also saves wear and tear on your car, allowing you to avoid doing costly repairs and maintenance on your vehicle so often. In the meantime, rideshare can offer you the chance for valuable networking with coworkers. At a time when jobs are scarce, the more contacts you make within your organization now the better off you can be later on. What if something happens and your car needs to be in the shop? Now you already know someone who can give you a ride, someone you are familiar enough with to ask at the last minute. What if you’re sick one day but need to get something to the office? Now your new friend could help you out.

In Phoenix, Arizona many people choose to live in quiet, newer housing developments that are located in the beautiful desert areas on the outer edges of town. This is completely understandable given the current housing market, where houses in these outlying areas have become even more affordable than ever and a family can truly live in luxury at a low price. However, the drive to work from so far away can cause stress on both your mind and your pocketbook. Even if you don’t live extremely far away from work, traffic during rush hour can still cause a person to waste gas and put “city miles” on the car-lots of stop and go, causing unnecessary wear and tear.

Did you know that in addition to all the above reasons people in Phoenix, Arizona are trying to share rides to work, you can also save money on your car insurance? Less miles driven per year often means lower rates. Check it out for yourself by getting a quote, and find out how you can save. Next time you are at work, why not create your own flyer. Instead of typing the words, “Rideshare Needed”, why not try “Who wants to save some money with me?”

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02 Aug 2016

What is a rideshare program?

You might have heard about ridesharing, but what exactly is it? What are the benefits? And how can you join in a rideshare program? The key to understanding ridesharing is learning about the program itself and realizing that there is no reason to not be open to the idea.

Ridesharing has been around since the 1940s when people had to carpool in order to ration gasoline to send to the troops fighting the war overseas, but when rationing ended, the numbers of people carpooling fell.
Many people avoid rideshare programs because they stubbornly refuse to give up driving their own cars alone. Millions of solo drivers hit the roads every day adding to the traffic congestion in the nation. All of these cars on the road also increase the levels of carbon dioxide put into the Earth’s atmosphere. Such a rise in this greenhouse gas increases the already rampant pace of global warming. read more

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01 Aug 2016

Becoming a Driver For Uber

I am becoming an Uber driver this week. My town, Portland, is one of the last major cities in the US to get Uber and Lyft, thanks to stringent cab laws here. I run a small business with my husband, part time, and am also a part time stay home mom. My daughter is now a teen and my business is pretty stable, so I need something to keep me occupied during my free time.

I have tried affiliate marketing, house flipping and selling on eBay. Those home businesses all were OK but each had problems that left me wanting to try something else. Uber offers the flexibility I want; I can work when I want and as often as I want, as long as I complete one trip per month.

I started blogging about Uber to find out what it was all about first. To do so I read articles and forums to see what was up. There were a lot of people complaining about low pay, especially in cities where the per mile average has gradually declined. Our per mile average is $1.55 as of Sept. 2015, which is about in the middle. We are about in the middle for cost of living here too, so that may be why. read more

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21 May 2016

How Does RideSharing Work?

Ridesharing: How it Works

It wasn’t until recently that ridesharing has become a hit. Uber, Lyft and Breeze have enjoyed an increased number of partners and clients over the years but not without challenges. These companies have made it possible for car owners to operate taxis using their very own cars to make extra money. The drivers sign up with the companies and are given an app that shows them where clients need to be picked up.

The companies then pay out the drivers through the same system. The clients use an app to find available cabs from the companies and get connected to those unoccupied. The plan is not only convenient but easy as well. A driver will choose to work at their convenience. The idea was set up to help car owners make an extra buck while the clients enjoy convenient and cheaper rides. The companies have grown in leaps and bounds which has created some challenges. This is where Rideshare Hotline comes in. We help our drivers get up and running quickly and without hassle.

Ridesharing actually started after most drivers testified that they had difficulty getting work. Rideshare came in to ease the load by providing carpooling services within these units. Carpooling works on the premise of using the same ride to a destination. The fare is shared among the users making it way cheaper than the standard fee.

Users are now able to log into the platforms and feed in their locations and destinations to generate new business on demand or to get rides on demand. The systems have an algorithm that maps out those that have the same need and time and puts them together for this sole purpose. The car users have to be at the pick-up point at the required time with codes given by the TNCs. These codes allow the driver to get payouts from the rideshare companies speeding up the process of payment. Each rideshare company has its own codes. The codes help the TNCs trace the jobs and make the payouts.

This is a short summary on how Ridesharing works between all of the above companies.

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