Transportation Network Companies (TNC) like Uber and Lyft are experiencing a substantial growth in California. Consumers enjoy the benefits of utilizing these companies for their transportation needs. Mercury Insurance will introduce ride-hailing coverage for these drivers. Many of these drivers are exposed to possible gaps in coverage, as personal auto insurance policies may have exclusions for this type of risk. This coverage will close that gap and extend coverage to drivers.
Transportation Network Company services generally fall into three periods:
*Period 1: App open – waiting for a match
*Period 2: Match accepted – passenger not picked up yet (driver on way to pick up)
*Period 3: Passenger in the vehicle and until the passenger exits the vehicle
*In most situations a company’s full commercial coverage does not apply until a ride has been accepted. Limited coverage may apply during the time the driver has logged into companies app but ride not accepted.
*Personal auto policies may exclude coverage when transporting passengers for a fee, including the time the ride-hailing app is on.
*The ride-hailing coverage will extend drivers’ personal auto policies through the ride cycle, allowing drivers to purchase this coverage not provided by their ride-hailing companies.
*To be eligible for Mercury’s ride hailing insurance, you must have a personal auto policy with them.
*Coverage can apply to more than one vehicle with Mercury’s ride-hailing insurance as long as you have Mercury personal auto insurance policies for those vehicles too.
*The minimum coverage required by Mercury for TNC drivers is to have a ride-hailing policy covered by a TNC commercial policy as their primary coverage when engaged in ride-hailing activities, which is required by law.
For additional information on this coverage, please feel free to contact our Carlsbad Office at (760)795-2002 or Temecula Office at (951)296-6833.