Ride sharing, also known as ride hailing companies offer taxi like services by connecting passengers to drivers through a mobile app on a mobile device.
Ride sharing has gotten a lot of attention in the recent past, especially from insurance providers. Firstly, the formal name for ridesharing business is Transportation Network Company, which is abbreviated as TNC. TNC has partnered with drivers who have their own personal vehicle to transport passengers. Therefore, drivers who work for ride sharing companies don’t possess the normal drivers license. Further, their cars are not insured nor registered as commercial cars. In addition, the drivers are not the same as taxi drivers or limousines who possess commercial insurance cover and are also registered.
The TNC car policy cover does not offer any form of insurance ride sharing. Additionally, a normal auto insurance covers doesn’t offer coverage once you stop the app from running, it only covers the driver and the passenger when the app is switched on, or when the transaction is complete.
Most insurance companies have taken a keen interest in this type of service. Insurance providers are flexible and willing to welcome any form of business venture coming its way. However, it is very important to know that personal car cover is only designed to cover those with private cars and not commercial vehicles. The commercial use goes beyond this type of service. It comes with any type of business of a personal car like making deliveries.
Most insurance firms have not been offering cover for ride sharing, and the reason for this is because they haven’t calculated underwriting risks of this type of business for policy holders who use their own vehicles to offer this service. However, there are a few companies that have started offering ride sharing insurance.
Find out about Uber Insurance Australia.
Ride sharing has gotten a lot of attention in the recent past, especially from insurance providers. Firstly, the formal name for ridesharing business is Transportation Network Company, which is abbreviated as TNC. TNC has partnered with drivers who have their own personal vehicle to transport passengers. Therefore, drivers who work for ride sharing companies don’t possess the normal drivers license. Further, their cars are not insured nor registered as commercial cars. In addition, the drivers are not the same as taxi drivers or limousines who possess commercial insurance cover and are also registered.
The TNC car policy cover does not offer any form of insurance ride sharing. Additionally, a normal auto insurance covers doesn’t offer coverage once you stop the app from running, it only covers the driver and the passenger when the app is switched on, or when the transaction is complete.
Most insurance companies have taken a keen interest in this type of service. Insurance providers are flexible and willing to welcome any form of business venture coming its way. However, it is very important to know that personal car cover is only designed to cover those with private cars and not commercial vehicles. The commercial use goes beyond this type of service. It comes with any type of business of a personal car like making deliveries.
Most insurance firms have not been offering cover for ride sharing, and the reason for this is because they haven’t calculated underwriting risks of this type of business for policy holders who use their own vehicles to offer this service. However, there are a few companies that have started offering ride sharing insurance.
Find out about Uber Insurance Australia.