The future of ride sharing

January 26th, 2016 | in Insurance

The Shape of Ride Sharing to Come

Much has been discussed privately and in the public domain about companies like Uber and other ride sharing applications. Unless you don’t own a computer or smartphone or read the newspaper you are likely aware of the subject.

While ride sharing has taken off in many jurisdictions, it is still under review in others. Regulatory approval, political will and taxi/transportation industry’s acceptance all need to be gained in areas that do not offer a ride sharing option.

A big societal concern is having these riding sharing operators properly insured. The good news is that some insurance companies are now offering coverage to drivers who operate a ride sharing venture using their own private vehicles. Of course, there are restrictions and conditions attached to these policies. Regular auto insurance policies do not provide coverage for the transportation of paying passengers at all.

This issue of having ride sharing activities insured brings up another issue from a consumer, public safety perspective and that is ensuring passengers know the drivers‘ have the appropriate insurance in place before they even get into the vehicle. How this will be accomplished has not yet been fully addressed but it vital to ensure that in the event of a crash, passengers have some recourse for any injuries sustained.

Given the worldwide demand and acceptance of ride sharing programs it is likely only a matter of time before all jurisdictions have some form of ride sharing programs in place. As the marketplace evolves, and information technology improves, a global sharing economy is highly likely to become a daily part of everyone’s lives that will include ride sharing.

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