We sometimes get calls about ridesharing services like Uber. I’ll write more about this in the future. There is current legislation being introduced in Georgia, but today it’s ‘rider and driver beware’.
There is little to no regulation for this industry in the area of driver background check, vehicle inspection and insurance. Passengers are at risk! Drivers are likely not covered by their personal auto insurance and failed to even ask their agent. They assume they are covered, but they are not. If you’re a passenger, the driver liability and medical liability won’t help you if you’re injured. If you’re a driver, your vehicle damage and liability will likely not be covered.
Some rideshare services offer supplemental insurance to their drivers but it is limited and many cases are being contested in court. What can go wrong? Here’s an example: “A recent case illustrates that the stakes are high. A six-year-old girl was killed in a collision with a rideshare car in San Francisco. The driver said he was awaiting a fare at the time of the accident. Because the driver wasn’t transporting a passenger when the accident occurred, the rideshare company said he wasn’t covered by their policy, leaving the driver financially responsible. The case is still in litigation, but it is estimated that damages could go as high as $20 million.”
Until this is worked out, we advise against the use of rideshare services. The risk is too high!