October 15, 2015

Thinking of driving for a Transportation Network Company?

Will your insurance company cover you while you are driving for a Transportation Network Company?

When you hail a car through a ride-sharing app like Uber on your smartphone, are you covered by insurance in the event of a serious accident? This critical question is at the heart of an ongoing debate over the legality of ride-sharing services such as Uber, Lyft, and Sidecar. This post will discuss the controversy over insurance requirements for ride-share drivers, as well as potential risks to both ride-sharing passengers and drivers when it comes to car accidents.

TNC’s (Transportation Network Companies) uses an online enabled platform to connect passengers with drivers using their personal non – commercial, vehicles.

Most automobile policy’s liability coverage contains an exclusion for an insureds liability arising out of the ownership or operation of a vehicle while it is being used as a public or livery conveyance. This exclusions applies during all phases of “ride sharing”; starting with when the application is turned on when a, match for a ride is made and when ultimately there is a fare paid in the auto.

Similar exclusions also apply to all coverages in the policy such as medical payments coverage, uninsured motorist coverage, and coverage for damage to your auto.

There are a few companies that can add a “rideshare” endorsement to your policy. If you are thinking about driving for one of the above mentioned companies, make sure and check with insurance agent to make sure you are properly covered!


McKnight Insurance Services is an independent agent in Mansfield, TX.


Please call us if you have any questions or concerns