Ridesharing is a way by which coworkers can reduce the expense of commuting by travelling to work together. Traditional carpooling is one example of ridesharing, as are walking, using public transportation, vanpooling, and even riding your bike. The big advantage of ridesharing is the environmental and financial savings due to reduced gasoline usage. Some companies encourage their employees to rideshare, by offering incentives or discounts. Additionally, there are ridesharing websites, such as www.rideshare.com, that help those interested in ridesharing find others in their situation or location. It all sounds great, until we consider how insurance plays a role.
If you’ve filled out an insurance application lately, you might recall that you need to answer in terms of the exact type of driving that you are doing. The insurance companies seek information not just in terms of your mileage, and whether you drive in the city or in a town, but also how you use your vehicle. In fact, some insurance companies even include a question addressing whether you intend to use your car for ridesharing. That’s all fine if you know how you’re going to use your car right off the bat; but what happens when you rather suddenly decide that ridesharing makes sense for you? For example, you decide to work as a contractor for a ridesharing company, or a company such as Uber?
If you are driving and get into an accident, you might find, unfortunately, that any passengers looing to your insurance on the vehicle are not covered. For instance, if the insurance company discovers that you and your passengers were involved in a ridesharing carpool, it might deny your claim, and the claims of your passengers. Avoid this situation, by reviewing your insurance policy. Has your insurance company defined ridesharing and notified you that if you choose to engage in ridesharing, you must provide them with notice? Additionally, your premium might be adjusted to cover the additional risk.
If you chose to rideshare, there are many obvious benefits, but you should take care to notify your insurance agency in writing and see if there are any additional steps you need to take, to ensure you are adequately covered. Moreover, if you the passenger in a ridesharing group, you probably want to make sure that your driver has adequate coverage and has notified his or her insurance company. Also, as a passenger, you can check to see that you yourself have adequate uninsured and underinsured motorist coverage on your own vehicle. Such coverage can protect you in an accident even when you are not the driver.
At the Law Offices of Stuart L. Plotnick, we want Maryland and Virginia drivers to take care and understand the automobile insurance they purchase to protect themselves, family members, friends, and coworkers. Don’t make the mistake of ridesharing and assuming that all will be well. Do your homework, ask the right questions, and properly notify your insurance company of any changes in your driving status. If you have been injured in an automobile collision and you have questions about your next steps, please call and speak with Attorney Plotnick today.
Sources: http://www.andersonhemmat.com/denvers-personal-car-accident-injury-blog/ridesharing-is-it-an-alternative-to-driving-alone-or-an-insurance-nightmare; and http://www.rideshare.com