Drivers, as well as passengers, should be aware of gaps in insurance coverage for “private sedan” or “transportation network company” activity.
As private auto for hire companies, such as uberX, Lyft and Sidecar, become more popular in the District of Columbia, the D.C. Department of Insurance, Securities and Banking is issuing this consumer guide to make drivers aware of the insurance implications of using their personal cars to offer these services. It is also important for passengers to know there may be gaps in insurance coverage in the unfortunate event of an accident or injury.
Private auto for hire companies – also called “private sedans,” “transportation network companies,” or “transportation network application companies” – use websites or smartphone apps to connect passengers with drivers using their personal autos to transport customers for a fee. Drivers should be aware that standard personal auto policies issued in the District do not include livery services, meaning driving for hire. Therefore, personal auto policies may not pay for accidents or other claims involving these services.
To read the full consumer guide “Insurance Gaps Exist in Private Autos for Hire Services” follow this link. You can visit the D.C. Department of Insurance, Securities and Banking on the web at disb.dc.gov.