Ride Sharing Services and Insurance

Typically, when you think of a cab you may think of a yellow car or van with a taxi sign on top, but that image may not be the same for very much longer. The sources of transportation are increasing as a new wave of “independent” cab drivers affiliated with ride sharing services like Uber and Lyft  are allowing individuals to earn money by using their personal vehicles to pick up “fares”.

These ride sharing services are not only giving traditional cab drivers a run for their money but they are causing concerns about the regulation of these services.  Regulated taxi services have rules in place to designate policies for charging fares, resolving complaints and insurance coverage.  These services are not regulated like traditional taxis. Traditional cabs are generally required to carry insurance to protect against liability that could arise from motor vehicle accident injuries that involve passengers, pedestrians and people in other vehicles.

Ride sharing services do have insurance but there have already been incidents that illustrate the concern for regulating ride sharing services.  For instance a driver of a ride sharing service struck and killed a pedestrian last year.  Unfortunately there was controversy over insurance coverage for the incident because the ride sharing vehicle was in between fares at the time and the insurance agreement did not include coverage for incidents that occurred in between fares.

Since this incident there have been changes in the ways that ride sharing services are insuring drivers and fares, but the services remain unregulated.  As these services gain popularity and continue to operate in more and more places, there will be additional questions about how they should be monitored. It will certainly be interesting to see how different states and cities weigh in on this issue.

If you have been injured in an automobile accident, please contact DeMayo Law Offices, L.L.P. for a free case evaluation.  (877) 333-1000.

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With North Carolina office locations in Charlotte, Hickory, Monroe and in Columbia, South Carolina, DeMayo Law Offices have been serving the state since 1992. You can contact us 24/7 and if you are unable to come to us - we will come to you.


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