Know the risks before you share a home, ride or more
The sharing economy is rapidly gaining popularity. Before you jump in on peer-to-peer transactions, understand how it works and how to avoid financial pitfalls.
Taken for a Ride
Ride-sharing companies such as Uber and Lyft connect individual drivers with people who need rides. Passengers and drivers can screen each other, schedule rides and collect payment electronically.
Consider these tips to stay safe on the roads:
- Before contracting as an Uber or Lyft driver, consult your insurer. Personal auto insurance typically excludes coverage for business use or when drivers are “available for hire.”
- Several insurers offer products to fill coverage gaps for ride-share drivers. Premiums, type of coverage, limits and availability varies by state. Ask your insurance agent to find out what is and is not covered.
- Before accepting a shared ride, know the extent you are protected in the event of an accident. Most ride-sharing companies have liability policies to cover any passenger injuries. If you are injured while riding, report a claim with the driver’s insurer and the ride-sharing company’s insurer and let them sort it out.