Sabtu, 17 Agustus 2019
Auto insurance. You can think of it as a piece of paper in a box of bracelets that you can buy in the US. It allows you to legally get on paper, but you actually sign a money swap agreement. When you buy car insurance, you can buy protection. If, for natural reasons, there is a collision, theft or damage to property, health or others, you have financial stability due to your high insurance policy. Or you?
Drivers polluted by the additional revenue of Uber, Lyft, Turo, Sidecar and other start-ups in the RideShare economy should pay attention to and consider the actual insurance results associated with the activity.
Economy on the hillside
The modern "vehicle economy" challenges some of the most well-known businesses in the United States. The idea that anyone can use their time and cars to make money has never been easier with smartphones and mobile apps.
The problem with partnerships is that it's still a relatively new concept, and the new auto insurance industry is beginning to express itself.
If you're a millennial, many of you may be familiar with Uber, Lyft, Turo and other major players in Ridehare's economy. For others, this is a quick spirit.
Uber and pick up
Thousands of taxi drivers worldwide work daily at Uber and Lyft. Being a driver with any service is quite easy. You need a car, and often it has to be 2005 and up, depending on the city. Driving license, age 21, personal insurance, verification of your biographical data and you're ready to go full-time or just a few hours a week.
Once approved as a driver with both services, you will begin receiving requests through your city mobile travel application. Expect to earn $ 19 an hour depending on the amount and time.
In Texas, Uber and Loft are available in most cities, though it's surprising that Oste Stein is no longer one of them. Until 2017, Uber and Lyft were still unavailable at Ostie Stein and could leave Houston together.
You know
New to the borax and elevator, Touro lets people drive and rent applications through their cars. Breaking into the traditional car rental industry, Turo makes passive income money by connecting regular car owners with tenants.
The rent is certified and may be rejected or approved by the owner. After approval, the keys are transferred, and the tenant drives the car for an hour and a few days, depending on what will be received initially.
Commercial use versus personal insurance
Although all three suppliers claimed to have adequate coverage during "commercial use", problems arose. Commercial use occurs when the vehicle is used for commercial purposes, not for personal use - Uber or Lyft applications are closed or discontinued and your vehicle is used for recreation. Uber has also released a handy diagram to illustrate the straight line between personal and professional car coverage.
For Turo, commercial use is defined as the delivery period (i.e., the period starting when the owner is actively delivering the car to the renter and ending when the car is delivered to the renter). For the renter, commercial use is defined as (receiving the keys to the car from the owner and returning the keys to the owner.)
In April of 2016, Progressive partnered with Uber to help insure Texans employed by the rideshare company. If you are an Uber driver, sign up for Progressive’s Snapshot which tracks driving habits and commercial vs. personal use.
5 Important Considerations Before Signing Up
1. Your personal insurance policy becomes void during commercial use
It’s important to note that during a period of commercial use, your personal insurance policy is no longer valid. Instead your coverage is based on the requirements, rules and protection of Uber, Lyft and Turo. These companies do not employ an insurance agent to walk you through the coverage, it is on you. In fact, they have made it so simple to sign up, that many drivers accept the terms without a second look.
Turo published a detailed 1,500 word overview on the comprehensive, collision and liability coverage that are and aren’t included. However, it requires a conversation with your auto insurance agent to truly understand what coverage you are losing during commercial use and the scenarios that can leave you without coverage.
For example, when it comes to bodily injury, property damage, PIP, and UM/UIM, Turo states:
“…Turo has either waived this coverage entirely or subscribed to the lowest limit allowable by state law, and members are bound by such election and agree to be so bound, as per the Terms of Service.”
In regards to physical damage to the car, Turo states:
“…if the car is lost, stolen, or damaged so extensively that the expected cost of repairs exceeds 75% of the actual cash value, the renter is responsible to pay the entire actual cash value of the car, plus all Related Costs, minus any residual salvage value.”
2. Your personal auto insurance policy could be void all the time
Your personal insurance policy could be void even by engaging in commercial activity, even if part time. It largely depends on your state, city, carrier and policy. Many carriers even drop policyholders simply when finding out that they are a ride share driver or owner.
Texas passed a law in January of 2016, that required drivers of Transportation Network Companies (TNC), to carry higher auto insurance limits. If you currently have state minimum coverage and are driving for Uber or Lyft, you wouldn’t be eligible to file a claim.
Other carriers limit coverage during periods when an app is engaged, but a passenger has not yet been picked up. These are grey areas of coverage that could require commercial auto insurance or a special ride share policy.
In Texas, Geico and USAA are the first to offer special rideshare policies to drivers of Uber, Lyft and Turo.
3. Low mileage discounts can be revoked
If you are currently benefiting from a lower premium due to “low mileage” which tends to be applicable to vehicles driven less than 10,000 – 15,000 miles per year, signing up on any ride sharing service is sure to get it revoked.
A typical Uber driver adds on 100 – 300 miles per day to their vehicle. That’s going to get the attention of your personal auto insurance carrier, and could even increase cost of your personal policy, despite high mileage happening during your employer’s time.
4. Be prepared for an increased number of small insurance claims
If a renter with Turo earns a scratch on your new Mustang during rental, without pictures of all damage beforehand, it is on you as the owner and your auto insurance policy to cover minor damage.
For those of us in Texas, the more someone else is driving our car, truck or SUV on the highway, the increased chance you could see a cracked windshield upon return.
5. Don’t trust all drivers, renters or owners on the app
Just because these companies have a global presence and a slick app, doesn’t mean all users are without fault. One user of Turo in Irving, TX ranted about her experience with the company and renters. In short:
Users reported electrical issues with her car, which Turo required her to fix without reimbursement
A renter parked her car in a paid spot at her apartment community, earning her a towing bill and trip to impound
She experienced the aftermath of renters that smoked and drank in her vehicle
What Should You Do?
Check with your insurance agent first if your auto policy covers or excludes certain aspects of ride sharing.
Under no circumstances should you lie to your agent. This can actually give your insurer the legal right to cancel your policy. Always be up front with your agent about any ride sharing activities you anticipate. They can help you navigate what is and isn’t covered and if a special ride sharing auto insurance policy is needed.
Drivers polluted by the additional revenue of Uber, Lyft, Turo, Sidecar and other start-ups in the RideShare economy should pay attention to and consider the actual insurance results associated with the activity.
Economy on the hillside
The modern "vehicle economy" challenges some of the most well-known businesses in the United States. The idea that anyone can use their time and cars to make money has never been easier with smartphones and mobile apps.
The problem with partnerships is that it's still a relatively new concept, and the new auto insurance industry is beginning to express itself.
If you're a millennial, many of you may be familiar with Uber, Lyft, Turo and other major players in Ridehare's economy. For others, this is a quick spirit.
Uber and pick up
Thousands of taxi drivers worldwide work daily at Uber and Lyft. Being a driver with any service is quite easy. You need a car, and often it has to be 2005 and up, depending on the city. Driving license, age 21, personal insurance, verification of your biographical data and you're ready to go full-time or just a few hours a week.
Once approved as a driver with both services, you will begin receiving requests through your city mobile travel application. Expect to earn $ 19 an hour depending on the amount and time.
In Texas, Uber and Loft are available in most cities, though it's surprising that Oste Stein is no longer one of them. Until 2017, Uber and Lyft were still unavailable at Ostie Stein and could leave Houston together.
You know
New to the borax and elevator, Touro lets people drive and rent applications through their cars. Breaking into the traditional car rental industry, Turo makes passive income money by connecting regular car owners with tenants.
The rent is certified and may be rejected or approved by the owner. After approval, the keys are transferred, and the tenant drives the car for an hour and a few days, depending on what will be received initially.
Commercial use versus personal insurance
Although all three suppliers claimed to have adequate coverage during "commercial use", problems arose. Commercial use occurs when the vehicle is used for commercial purposes, not for personal use - Uber or Lyft applications are closed or discontinued and your vehicle is used for recreation. Uber has also released a handy diagram to illustrate the straight line between personal and professional car coverage.
For Turo, commercial use is defined as the delivery period (i.e., the period starting when the owner is actively delivering the car to the renter and ending when the car is delivered to the renter). For the renter, commercial use is defined as (receiving the keys to the car from the owner and returning the keys to the owner.)
In April of 2016, Progressive partnered with Uber to help insure Texans employed by the rideshare company. If you are an Uber driver, sign up for Progressive’s Snapshot which tracks driving habits and commercial vs. personal use.
5 Important Considerations Before Signing Up
1. Your personal insurance policy becomes void during commercial use
It’s important to note that during a period of commercial use, your personal insurance policy is no longer valid. Instead your coverage is based on the requirements, rules and protection of Uber, Lyft and Turo. These companies do not employ an insurance agent to walk you through the coverage, it is on you. In fact, they have made it so simple to sign up, that many drivers accept the terms without a second look.
Turo published a detailed 1,500 word overview on the comprehensive, collision and liability coverage that are and aren’t included. However, it requires a conversation with your auto insurance agent to truly understand what coverage you are losing during commercial use and the scenarios that can leave you without coverage.
For example, when it comes to bodily injury, property damage, PIP, and UM/UIM, Turo states:
“…Turo has either waived this coverage entirely or subscribed to the lowest limit allowable by state law, and members are bound by such election and agree to be so bound, as per the Terms of Service.”
In regards to physical damage to the car, Turo states:
“…if the car is lost, stolen, or damaged so extensively that the expected cost of repairs exceeds 75% of the actual cash value, the renter is responsible to pay the entire actual cash value of the car, plus all Related Costs, minus any residual salvage value.”
2. Your personal auto insurance policy could be void all the time
Your personal insurance policy could be void even by engaging in commercial activity, even if part time. It largely depends on your state, city, carrier and policy. Many carriers even drop policyholders simply when finding out that they are a ride share driver or owner.
Texas passed a law in January of 2016, that required drivers of Transportation Network Companies (TNC), to carry higher auto insurance limits. If you currently have state minimum coverage and are driving for Uber or Lyft, you wouldn’t be eligible to file a claim.
Other carriers limit coverage during periods when an app is engaged, but a passenger has not yet been picked up. These are grey areas of coverage that could require commercial auto insurance or a special ride share policy.
In Texas, Geico and USAA are the first to offer special rideshare policies to drivers of Uber, Lyft and Turo.
3. Low mileage discounts can be revoked
If you are currently benefiting from a lower premium due to “low mileage” which tends to be applicable to vehicles driven less than 10,000 – 15,000 miles per year, signing up on any ride sharing service is sure to get it revoked.
A typical Uber driver adds on 100 – 300 miles per day to their vehicle. That’s going to get the attention of your personal auto insurance carrier, and could even increase cost of your personal policy, despite high mileage happening during your employer’s time.
4. Be prepared for an increased number of small insurance claims
If a renter with Turo earns a scratch on your new Mustang during rental, without pictures of all damage beforehand, it is on you as the owner and your auto insurance policy to cover minor damage.
For those of us in Texas, the more someone else is driving our car, truck or SUV on the highway, the increased chance you could see a cracked windshield upon return.
5. Don’t trust all drivers, renters or owners on the app
Just because these companies have a global presence and a slick app, doesn’t mean all users are without fault. One user of Turo in Irving, TX ranted about her experience with the company and renters. In short:
Users reported electrical issues with her car, which Turo required her to fix without reimbursement
A renter parked her car in a paid spot at her apartment community, earning her a towing bill and trip to impound
She experienced the aftermath of renters that smoked and drank in her vehicle
What Should You Do?
Check with your insurance agent first if your auto policy covers or excludes certain aspects of ride sharing.
Under no circumstances should you lie to your agent. This can actually give your insurer the legal right to cancel your policy. Always be up front with your agent about any ride sharing activities you anticipate. They can help you navigate what is and isn’t covered and if a special ride sharing auto insurance policy is needed.