|The pace of change is dramatic in all facets of society today. People are glued to their smart phones to make calls, check email, Google, Facebook, Twitter, Snapchat, Instagram, ect....businesses are starting up to meet the changing needs of an always “on” society.|
One type of business that has come on the scene quickly has been ride sharing services.
- And ZipCar are all examples of ride sharing to one degree or another.
Some of the ride sharing services use mobile apps to reserve and connect people to cars they can use for a period of time—like a ZipCar service. Except instead of having a fleet of cars available for hourly rentals in convenient, populated locations, these services use personally owned vehicles. Some of the new services also connect people together and a personally owned vehicle is used like a taxi service--the owner picks up and drives the customer to their desired location for a fee.
Regardless of how it is done, personal auto insurance carriers are issuing exclusions on the personal auto policy for anything connected to this type of exposure. Some companies are creating their own wording while others are using the wording adopted by the State. Massachusetts wording is as follows:
“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.”
While making a few extra bucks may sound good, make sure you have the protection you need if an accident should occur. Otherwise, be prepared lose a lot more than you gain!