VEHICLE/RIDE SHARING OVERVIEW

Transcription

1 VEHICLE/RIDE SHARING OVERVIEW 1. UBER Driver Requirements include: 1. At least 23 years old 2. Mid-Size car 3. Personal Auto Insurance 4. Good Driving Record 5. Smart phone that will run UBER app. UBER provides: 1. $1 million liability insurance policy as excess over driver s insurance UBER states that if primary insurance is not available, UBER policy covers first dollar 2. There is a current court case in CA a driver who was logged into the UBER application as available to drive struck and killed a six year old girl in a crosswalk. UBER says they re not liable because there was no active trip at the time of the incident. The personal auto carrier argues that, since the insured was driving around logged in to the ride-sharing app, the insured was providing a livery service at the time of the incident. 2. LYFT The Lyft website advertises the service as your friend with a car. However, this friend is NOT providing free rides! Again, a mobile phone app allows potential riders to be hooked up with potential drivers for free. But if it smells like a duck and quacks like a duck it s a duck. Lyft advertises that a million dollars of excess liability coverage is available. Hopefully that will drop down when the driver s personal auto policy denies the claim. 12/2014

2 3. SIDECAR MORE OF THE SAME RIDESHARE (PUBLIC OR LIVERY CONVEYANCE) Again, an organization allowing an individual to find, fetch, and pay for a ride with just a few touches on their smartphones, SideCar advertises that they provide peer to peer ridesharing. But someone pays the driver for a ride hmmmm, sounds like public or livery conveyance to us. All of these organizations make it easy for the social media savvy individual to make some quick cash by providing transportation to others without the hassle and without the paper. However, if this individual is insured under a MA Personal Auto policy, he/she should NOT assume that the MAP will provide coverage when an incident arises. 4. FLIGHTCAR Flightcar is a business that may solicit your clients to volunteer their personal autos as rental vehicles for someone else. It is a business already operating at the San Francisco International Airport, Boston Logan International Airport, Caltrain and BART. The business makes individually-owned vehicles available for rental use by travelers coming into Logan Airport by travelers LEAVING Logan Airport. The original premise/gimmick was to provide free airport parking to the long-suffering frequent traveler who spends a wicked lot of money parking at or near Logan Airport. What benefit does the vehicle owner receive? 1. Free Parking Guaranteed As long as the vehicle is available for use by others, the owner will receive free airport parking. 2. Free Valet No horrid airport bus shuttle for you! You will be driven to the airport by a black car ride from the Flightcar off-airport parking area. 3. Free Car Wash The vehicle will be washed before AND after it s rented. 4. Free Storage of Personal Items Any personal items in your vehicle will be stored so that the renter will not have access to your things. 5. $10.00 Daily Rental Payment Plus in addition to the daily rental allotment, you will receive at LEAST the same amount of gas that you had when you dropped of the car lucky you. Page 2

3 6. Insurance Flightcar advertises that there is $1 million liability coverage to protect the vehicle owner when being used by a renter. Flightcar also states that collision, theft and damage insurance is available to cover the ENTIRE value of the car! Flightcar states that it will also cover mechanical breakdown that results from improper usage of the vehicle during the rental. (I wonder what the definition of improper usage is?) Flightcar also states it will arrange a car for use if the vehicle is stolen or damaged and not available for the owner s use. It sounds almost too good to be true. I, personally, would like to see the policy, but I m sure your clients don t care. 5. RELAYRIDES - THE WORLD S LARGEST PEER-TO-PEER RENTAL MARKETPLACE RelayRides boasts: Founded in 2009 and headquartered in San Francisco, CA, RelayRides is disrupting the $60 billion global car rental industry, connecting vehicle owners whose cars would otherwise be idle with people who need a car. Since its national launch in March 2012, RelayRides has built a vibrant community of tens of thousands of car owners and hundreds of thousands of renters. Owners are able to make hundreds or even thousands of dollars a month by simply and safely renting out their cars. From A3 to Z4, renters have access to an unparalleled selection of vehicles at prices up to 40% lower than other car rental options, while enjoying the convenience of renting cars where they re needed: right in their own neighborhood, at the airport, and everywhere in between. Backed by top-tier investors, including August Capital, Google Ventures, Shasta Ventures, Canaan Partners, and Trinity Ventures, RelayRides is currently available in cities and 300+ airports throughout the United States. With a talented, dedicated team, we re changing the way people think about travel. Insurance RelayRides explains its insurance coverage: We ve got you covered Keeping you and your car safe is our priority Car owners count on: Renters can count on: $1 million liability insurance policy Insurance coverage Strict renter screening 24/7 roadside assistance & support Page 3

4 6. ZIPCAR CAR-SHARING What s included? The beauty of car sharing is that it just makes sense. It s there when you need it and not when you don t. Just imagine never having to pay a car payment, pay an auto insurance bill, or worry about the cost of gas again Hallelujah. 1. Gas, insurance & daily mileage are on us We throw in all the fixins, gas, comprehensive insurance, and up to 180 miles/day (Of course if you go antiquing, that armoire is on you.) 2. The mobile app that makes you mobile You can find, book, unlock and even honk a car with our mobile app. We ve come a long way from carrier pigeons. 3. Your very own Zipcard Be a card-carrying Zipster. This magical card unlocks thousands of cars (and exclusive deals) in cities around the world. Insurance: Every member in good standing who follows the rules is covered by our insurance while driving a Zipcar. Here are the highlights: Comprehensive collision coverage Liability coverage of 300,000 $ per accident (combined single limit) for members age 21+; for members under 21, at the level mandated by the automobile financial responsibility law 1 of the jurisdiction in which the accident occurs. Personal Injury Protection (PIP), or "no-fault" coverage, at the level mandated by the automobile financial responsibility law of the jurisdiction in which the accident occurs; however, any personal insurance coverage that the member may have would apply on a primary basis and our no fault coverage would be secondary. Members are responsible for a $750 damage fee per incident, which can be reduced or eliminated with an optional damage fee waiver 7. GETAROUND Put your idle car to work Earn up to $10,000/year Make money: By renting your car just 25% of the time, it will pay for itself with money to spare. Flexible: You decide how to share your car and use it whenever you want. Protection: $1,000,000 primary insurance included. Drivers are screened to ensure they have a safe driving record. Page 4

5 Convenient: Meet renters to handoff keys or get a Getaround Connect to give renters mobile access to your car. Drive your dream car: Mix things up by renting a different car on Getaround. Your car won t get jealous, we promise. Save the planet: Sharing your car takes up to 13 cars off the road. Reduce traffic congestion, parking scarcity, material waste, and pollution by sharing through Getaround. Share with friends: If friends use your car, sharing through Getaround will make scheduling easier. If you have the Getaround Connect, renters can access your car from their phone. Feel good: Helping the community and the environment mentally pays off too. You ll be surprised how respectful and grateful renters are. 8. WHAT WILL THE MAP DO? If one believes everything they read... Then supposedly the MAP will NOT have to be involved when the vehicle is rented to one s fellow traveler. However, how long will the claims process take under the car-sharing/renting firm s insurance, and exactly how does the policy read? Must the MAP carrier be informed of this new and interesting activity even though, supposedly, it won t have to be involved? I think so. This IS an increase in risk whether or not the MAP ultimately has to pay out. This COULD be considered a business activity depending on the number of rental situations. We should NOT forget the infamous General Provisions 18 Failure to Furnish Information and 19 Changes Which Affect Premium: Page 5

6 The policy obligates an insured to discuss changes in exposure DURING the policy period... or bad things can happen such as claim denial. If there is a renewal questionnaire, then the insured is obligated to discuss a change in exposure. The AIB renewal questionnaire language states: It will not be necessary to return this form to your agent or company representative unless you wish to make any changes or unless the information contained on the Coverage Selections Page and in this form is inaccurate or obsolete. You must inform us of any changes which may have a material effect on your insurance coverage or premium charges, including the description, ownership, type of usage and place of garaging of the auto(s) and the household members and individuals who customarily operate the auto(s). There is also a question about business. A normal client might not think what they are doing IS a business... but let s face it... anyone with half a brain has to realize that this IS changing the type of usage. Every year the insured receives a Coverage Selections Page (declarations page). If the company still uses the AIB model, then either the back of the coverage selections page or the second page of the coverage selections page states: NOTICE: You must notify us of changes that have occurred prior to the renewal of this policy and during the policy period. It is a crime to knowingly provide false or fraudulent information for the purpose of defrauding an insurance company. If you or someone else on your behalf has knowingly given us false, deceptive, misleading or incomplete information and if such false, deceptive, misleading or incomplete information increases our risk of loss, we may refuse to pay claims under any or all of the Optional Insurance Parts and we may cancel your policy. Such information includes the description and the place of garaging of the vehicle(s) to be insured, the names of all household members and customary operators required to be listed and the answers given above for all listed operators. We may also limit our payments under Part 3 and Part 4. Check to make certain that you have correctly listed all operators and the completeness of their previous driving records. The Merit Rating Board may verify the accuracy of the previous driving records of all listed operators. The AIB auto application does not ask if the vehicle is rented to others, yet Rule 27 in the AIB and MAIP manuals state that a vehicle rented to others is NOT ELIGIBLE for a MA personal auto policy. A motor vehicle of the private passenger or station wagon type that is owned or leased under contract for a continuous period of at least twelve months by one or more individuals, excluding (1) partnerships, (2) corporations, (3) unincorporated business associations, and (4) other legal business entities with a federal employer identification number, and is not used as a public or livery conveyance nor rented to others. A vehicle which meets the conditions of Rule 31, regarding the transportation of fellow employees, students or others for consideration, is included in this definition, provided such vehicle is not registered for carrying passengers for hire. Page 6

7 Many companies have adopted the Personal Vehicle Sharing Exclusion M-0108-S MASSACHUSETTS ENDORSEMENT M-0108-S Personal Vehicle Sharing Exclusion 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. This exclusion does not apply to Personal Injury Protection (Part 2). (Ed ) Page 7