VEHICLE/RIDE SHARING
OVERVIEW
1. UBER
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Driver Requirements include:
1. At least 23 years old
2. Mid-Size car
3. Personal Auto Insurance
4. Good Driving Record
5. Smart phone that will run UBER app.
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UBER provides:
1.
$1 million liability insurance policy as excess over driver’s insurance –
UBER states that if primary insurance is not available, UBER policy
covers first dollar
2.
There is a current court case in CA – a driver who was logged into the
UBER application as available to drive struck and killed a six year old
girl in a crosswalk. UBER says they’re not liable because there was no
“active trip” at the time of the incident. The personal auto carrier
argues that, since the insured was driving around “logged in” to the
ride-sharing app, the insured was providing a livery service at the time
of the incident.
2. LYFT
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The Lyft website advertises the service as “your friend with a car.”
However, this friend is NOT providing free rides!
•
Again, a mobile phone app allows potential riders to be hooked up with
potential drivers for free. But … if it smells like a duck and quacks like a
duck … it’s a duck.
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Lyft advertises that a million dollars of excess liability coverage is
available. Hopefully that will drop down when the driver’s personal auto
policy denies the claim.
12/2014
3.
4.
SIDECAR … MORE OF THE SAME … RIDESHARE (PUBLIC OR LIVERY CONVEYANCE)
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Again, an organization allowing an individual to “find, fetch, and pay for a
ride with just a few touches on their smartphones,” SideCar advertises
that they provide “peer to peer” ridesharing. But someone pays the driver
for a ride … hmmmm, sounds like public or livery conveyance to us.
•
All of these organizations make it easy for the social media savvy
individual to make some quick cash by providing transportation to others
without the hassle and without the paper. However, if this individual is
insured under a MA Personal Auto policy, he/she should NOT assume that
the MAP will provide coverage when an incident arises.
FLIGHTCAR
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Flightcar is a business that may solicit your clients to “volunteer”
their personal autos as rental vehicles for someone else. It is a
business already operating at the San Francisco International
Airport, Boston Logan International Airport, Caltrain and BART.
•
The business makes individually-owned vehicles available for rental
use by travelers coming into Logan Airport by travelers LEAVING
Logan Airport. The original premise/gimmick was to provide free
airport parking to the long-suffering frequent traveler who spends a
“wicked lot” of money parking at or near Logan Airport.
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What benefit does the vehicle owner receive?
1. “Free Parking Guaranteed”
As long as the vehicle is available for use by others, the
owner will receive free airport parking.
2. “Free Valet”
No horrid airport bus shuttle for you! You will be driven to the
airport by a “black car ride” from the Flightcar off-airport
parking area.
3. “Free Car Wash”
The vehicle will be washed before AND after it’s rented.
4. “Free Storage of Personal Items”
Any personal items in your vehicle will be stored so that the
renter will not have access to your things.
5. “$10.00 Daily Rental Payment”
Plus … in addition to the daily rental allotment, you will
receive at LEAST the same amount of gas that you had when
you dropped of the car – lucky you.
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6. “Insurance”
Flightcar advertises that there is $1 million liability coverage
to protect the vehicle owner when being used by a renter.
Flightcar also states that collision, theft and “damage”
insurance is available to cover the ENTIRE value of the car!
Flightcar states that it will also cover mechanical breakdown
that results from improper usage of the vehicle during the
rental. (I wonder what the definition of “improper usage” is?)
Flightcar also states it will “arrange a car for use” if the
vehicle is stolen or damaged and not available for the owner’s
use. It sounds almost too good to be true. I, personally,
would like to see the policy, but I’m sure your clients don’t
care.
5.
RELAYRIDES - THE WORLD’S LARGEST PEER-TO-PEER RENTAL MARKETPLACE
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RelayRides boasts: Founded in 2009 and headquartered in San
Francisco, CA, RelayRides is disrupting the $60 billion global car rental
industry, connecting vehicle owners whose cars would otherwise be
idle with people who need a car.
Since its national launch in March 2012, RelayRides has built a vibrant
community of tens of thousands of car owners and hundreds of
thousands of renters. Owners are able to make hundreds – or even
thousands – of dollars a month by simply and safely renting out their
cars. From A3 to Z4, renters have access to an unparalleled selection
of vehicles at prices up to 40% lower than other car rental options,
while enjoying the convenience of renting cars where they’re needed:
right in their own neighborhood, at the airport, and everywhere in
between.
Backed by top-tier investors, including August Capital, Google
Ventures, Shasta Ventures, Canaan Partners, and Trinity Ventures,
RelayRides is currently available in 2100+ cities and 300+ airports
throughout the United States. With a talented, dedicated team, we’re
changing the way people think about travel.
•
Insurance
RelayRides explains its insurance coverage:
We’ve got you covered – Keeping you and your car safe is our priority
Car owners count on:
$1 million liability insurance policy
Strict renter screening
Renters can count on:
Insurance coverage
24/7 roadside assistance
& support
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6. ZIPCAR … CAR-SHARING
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What’s included?
The beauty of car sharing is that it just makes sense. It’s there when you
need it and not when you don’t. Just imagine never having to pay a car
payment, pay an auto insurance bill, or worry about the cost of gas again
Hallelujah.
1.
Gas, insurance & daily mileage are on us … We throw in all the fixins,
gas, comprehensive insurance, and up to 180 miles/day (Of course if
you go antiquing, that armoire is on you.)
2.
The mobile app that makes you mobile … You can find, book, unlock
and even honk a car with our mobile app. We’ve come a long way
from carrier pigeons.
3.
Your very own Zipcard … Be a card-carrying Zipster. This magical card
unlocks thousands of cars (and exclusive deals) in cities around the
world.
Insurance:
Every member in good standing who follows the rules is covered by our
insurance while driving a Zipcar. Here are the highlights:
Comprehensive collision coverage
Liability coverage of 300,000 $ per accident (combined single limit) for
members age 21+; for members under 21, at the level mandated by the
automobile financial responsibility law1 of the jurisdiction in which the accident
occurs.
Personal Injury Protection (PIP), or "no-fault" coverage, at the level mandated
by the automobile financial responsibility law of the jurisdiction in which the
accident occurs; however, any personal insurance coverage that the member
may have would apply on a primary basis and our “no fault” coverage would
be secondary.
Members are responsible for a $750 damage fee per incident, which can be
reduced or eliminated with an optional damage fee waiver
7. GETAROUND
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Put your idle car to work – Earn up to $10,000/year
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Make money:
By renting your car just 25% of the time, it will pay for itself with money
to spare.
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Flexible:
You decide how to share your car and use it whenever you want.
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Protection:
$1,000,000 primary insurance included. Drivers are screened to ensure
they have a safe driving record.
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Convenient:
Meet renters to handoff keys or get a Getaround Connect to give renters
mobile access to your car.
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Drive your dream car:
Mix things up by renting a different car on Getaround. Your car won’t get
jealous, we promise.
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Save the planet:
Sharing your car takes up to 13 cars off the road. Reduce traffic
congestion, parking scarcity, material waste, and pollution by sharing
through Getaround.
•
Share with friends:
If friends use your car, sharing through Getaround will make scheduling
easier. If you have the Getaround Connect, renters can access your car
from their phone.
•
Feel good:
Helping the community and the environment mentally pays off too. You’ll
be surprised how respectful and grateful renters are.
8. WHAT WILL THE MAP DO?
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If one believes everything they read ... Then supposedly the MAP will NOT have to be
involved when the vehicle is “rented“ to one‘s fellow traveler. However, how long will the
claims process take under the car-sharing/renting firm’s insurance, and exactly how does
the policy read?
•
Must the MAP carrier be informed of this new and interesting activity even though,
supposedly, it won‘t have to be involved? I think so. This IS an increase in risk whether or
not the MAP ultimately has to pay out. This COULD be considered a business activity
depending on the number of rental situations.
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We should NOT forget the infamous General Provisions 18 Failure to Furnish Information
and 19 Changes Which Affect Premium:
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The policy obligates an insured to discuss changes in exposure DURING the policy
period ... or bad things can happen such as claim denial.
If there is a renewal questionnaire, then the insured is obligated to discuss a change in
exposure.
The AIB renewal questionnaire language states:
It will not be necessary to return this form to your agent or company representative
unless you wish to make any changes or unless the information contained on the
Coverage Selections Page and in this form is inaccurate or obsolete. You must
inform us of any changes which may have a material effect on your insurance
coverage or premium charges, including the description, ownership, type of usage
and place of garaging of the auto(s) and the household members and individuals
who customarily operate the auto(s).
There is also a question about “business“. A normal client might not think what they
are doing IS a business ... but let‘s face it ... anyone with half a brain has to realize
that this IS changing the “type of usage.“
Every year the insured receives a Coverage Selections Page (declarations page). If the
company still uses the AIB model, then either the back of the coverage selections page
or the second page of the coverage selections page states:
NOTICE: You must notify us of changes that have occurred prior to the renewal of
this policy and during the policy period. It is a crime to knowingly provide false or
fraudulent information for the purpose of defrauding an insurance company. If you
or someone else on your behalf has knowingly given us false, deceptive, misleading
or incomplete information and if such false, deceptive, misleading or incomplete
information increases our risk of loss, we may refuse to pay claims under any or all
of the Optional Insurance Parts and we may cancel your policy. Such information
includes the description and the place of garaging of the vehicle(s) to be insured,
the names of all household members and customary operators required to be listed
and the answers given above for all listed operators. We may also limit our
payments under Part 3 and Part 4. Check to make certain that you have correctly
listed all operators and the completeness of their previous driving records. The
Merit Rating Board may verify the accuracy of the previous driving records of all
listed operators.
The AIB auto application does not ask if the vehicle is rented to others, yet Rule 27 in
the AIB and MAIP manuals state that a vehicle rented to others is NOT ELIGIBLE for a
MA personal auto policy.
A motor vehicle of the private passenger or station wagon type that is owned or
leased under contract for a continuous period of at least twelve months by one or
more individuals, excluding (1) partnerships, (2) corporations, (3) unincorporated
business associations, and (4) other legal business entities with a federal employer
identification number, and is not used as a public or livery conveyance nor rented to
others. A vehicle which meets the conditions of Rule 31, regarding the
transportation of fellow employees, students or others for consideration, is included
in this definition, provided such vehicle is not registered for carrying passengers for
hire.
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Many companies have adopted the Personal Vehicle Sharing Exclusion – M-0108-S
MASSACHUSETTS ENDORSEMENT – M-0108-S
Personal Vehicle Sharing Exclusion
We will not pay any claim for injury or property damage under the policy, while your
auto is being used in a personal vehicle sharing program. Such programs allow the use
of your auto by a person other than you or a household member under an agreement
and with payment to you. This exclusion does not apply to Personal Injury Protection
(Part 2).
(Ed. 09-13)
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