Uber and out for ride-share bill
Since the birth of technology-based transportation networking companies, such as Uber and Lyft, 29 states have passed legislation to address the insurance coverage gap that exists. Florida is not one of them. For the third straight year, the Legislature put the ride-sharing bill into park.
Commercial ride-sharing is gaining in popularity. Many states have adopted model legislation to address the gap in auto insurance coverage that exists. The gap occurs when a ride-share driver is “on the clock” to pick up a fare and when a passenger gets into the car. If a car crash happens along the way, that driver would be on his own dime. And, most of those drivers are unaware of this.
Personal auto insurance policies exclude coverage when a personal car becomes a commercial business, which is what happens when the family mini-van picks up strangers to transport them for money. Their insurance may not cover their liability, personal injury protection or collision repair – because the insurance is a personal auto policy and not for when a vehicle is used as a livery service.
Insurers have no beef with new technology or with transportation network companies that employ it. It’s just that they can’t offer an insurance product to fill the gap in coverage without legislation. So, maybe next year. Fourth time is a charm?