Following an accident I expect disgruntled car and truck owners who participated in Uber or Lyft to call us wanting legal help. Most individual auto policies don’t cover you for accidents if you are working for hire. Both Uber and Lyft apparently are a quasi-taxi service for hire. Here is Joe Gardyasz’ article from the Business Record. A word to the wise, get legal advice before you jump onboard this taxi for a ride. The same goes for the passengers hiring these services. If you get into an accident what then? Who will have insurance coverage?
Commissioner: Uber, Lyft could pose potential insurance pitfalls
App-driven ride-sharing programs could be hazardous to the financial health of Iowans if there's an accident or a claim, according to a recent consumer alert issued by Iowa's insurance commissioner.
The Iowa Insurance Division is cautioning Iowans who may be considering signing up to drive for Uber or other smartphone-driven services that connect drivers, riders and vehicle owners for car-sharing and ride-sharing that they may not be covered if their vehicle is damaged or someone is hurt.
Uber, whose ride-sharing program is rapidly expanding throughout major cities globally, recently began advertising for drivers in Des Moines, but has not yet set any firm date for launching in the state.
In a similar vein, Iowa Insurance Commissioner Nick Gerhart cautions that vacation home-sharing programs such as VRBO and Airbnb could lead to devastating financial losses as well.