It seems that in today’s world, we are using sharing our homes and cars with total strangers. The questions that need to be asked are; does this create new risks, and how do I make sure there is proper insurance place.

SanDiego Rideshare Drivers

If you drive your personally owned auto for Uber, Lyft, or even a pizza delivery company, your personal auto insurance will not provide coverage should you be involved in an accident. Uber and Lyft do not provide the needed auto insurance coverage to protect you and your passengers. If you are an Uber or Lyft driver, your personal auto insurance will not cover this exposure.  So call our office today to make sure you have the proper coverage.

The reason your personal car insurance doesn’t cover you is an exclusion for hauling others for a fee. This has always been excluded. It’s just been in the spotlight again because of ride sharing services like Uber and Lyft and their mobile phone technology.

There are a number of insurance companies now offering specific auto insurance coverage for ride sharing risks.

Here are a few tips for ride share drivers

  1. Purchase a separate policy with at least a $1,000,000 limit.
  2. Read any and all agreements, so you know what your responsibilities are.
  3. Keep your vehicle in good working condition.
  4. Talk to your insurer before signing up and keep things on the up and up.

As these ride share programs become more and more popular, we are seeing more reported injuries and accidents. In some cases, there is minimal, or no, insurance to protect you.

Ride Sharing Safety Tips

  • Tell someone about your plans.
  • Check the driver’s rating on the app.
  • Check the identity of the driver before you get in.
  • When you request a ride, ask to be picked up in a high traffic area.
  • Don’t ride in the front seat for health and safety reasons.
  • Never give cash.
  • The car should have some identification on the windows.

 

Rental Property Risks

Many people are using VRBO, Airbnb, or other home renting sites. While this may be a great way to find a vacation rental, it could pose issues if you rent out your primary home, condominium, or apartment to others for a fee. It may be wise to read through this, and a related article, before you rent out your primary residence.

  1. Your homeowner’s, renter’s or condominium insurance most likely will not provide coverage if you rent out your residence. So, if the renter damages your property or burns your home down, you will be uninsured under your homeowner’s policy.
  2. These sites say they offer some level of insurance, but it is usually secondary to your policy, and most likely will not respond.
  3. Read your lease or rental agreement; many of these prohibit sub-leasing.
  4. It may actually be illegal in your city to rent out your residence on a short term basis. Check the zoning laws in your community. If you live in an area with a community association, there may also be regulations to consider.
  5. By placing pictures of your primary home online you may open yourself up to loss of privacy.

One final thought, you could also create increased liability if the renter somehow damages your neighbor’s property or injures a third party on your property.

The insurance industry will respond over time to the sharing economy, but in the meantime, there are limitations and restrictions in your current homeowner’s insurance policies of which you need to be aware.

For more than 3 decades, Wayne McCormick, CIC, of McCormick Insurance Solutions has been serving the insurance needs of San Diegans who are looking for the right coverage for their auto, home, life, motorcycle, boat, RV and more.

Focused on getting to know you and your unique lifestyle needs, the “Insurance Sensei” Wayne McCormick will offer you and your loved ones.

To get a free rate quote, simply complete the easy Quote Request form or call (619) 276-0492.