Imagine this horror story: You’re on your way to pick up an Uber passenger when a truck rear-ends you at a red light. No one is hurt, but your car has to be towed. Cops arrive and take down everyone’s info, including that you’re an Uber driver.
You submit an insurance claim but it’s denied because you were using your car commercially. Uber is no help because you didn’t pick up your passenger yet. So you’re on the hook for the towing and the car repairs. To add insult to injury, your insurance company drops you—using your car as a business is against the terms of your policy.
New regulations for transportation network companies like Uber and Lyft would require driver background checks, bump up insurance coverage, among other protections.
An estimated 20,000 New Jerseyans have worked or are working part or full-time as TNC drivers, according to the bill’s sponsors. The services have also helped riders and the economy: In December, Lyft released a study showing that in 2016 Lyft saved its New Jersey riders one million hours of travel time, which is valued at over $18 million, and generated more than $19.3 million in extra spending across the state.
Call your insurance company to learn their rules—and their rates--before you take your first Uber drive. If you have concerns about what they say, call us. We’ll be glad to help.