Public or livery conveyance drivers#
Public or livery conveyance driver#

Public or livery conveyance driver#

Some may also offer Uninsured/Underinsured motorist coverage, something that can protect you when you are involved in an accident with an at-fault driver who had insufficient coverage or no coverage at all (which happens all too frequently). What if my Transportation Network Company tells me I’m covered when I drive for them?Īn increasing number of TNCs are indicating that they are going to cover the driver’s commercial exposure for liability and collision coverage. Regulators in many states have been issuing consumer alerts to warn the public about possible implications when signing up as a driver – or as a passenger – with the ridesharing apps. Other restrictions could apply, so even if you don’t see a specific exclusion, you should not assume that there is coverage under the personal auto policy. Some policies have even stronger exclusions that exclude any coverage when the driver is available for hire. 1994).Most standard personal auto policies exclude coverage for “public or livery conveyance ” in other words, the use of the vehicle to transport passengers for a fee. For questions about this article, please contact David. While companies such as Uber may differ slightly from traditional taxicabs, North Carolina should examine the business models to ensure that innocent victims and consumers are sufficiently protected in the event of an accident.Ībout the author: David’s practice focuses on the field of complex civil litigation, with an emphasis on the defense of trucking and transportation, product liability, and insurance defense cases. In such a situation, an innocent victim would potentially be forced to pursue litigation and navigate the tedious waters of insurance coverage and the Financial Responsibility Act in order to be appropriately compensated for his or her damages. Many different factual scenarios can be imagined, however, where both the driver’s personal policy and Uber’s commercial policy would decline coverage.

Public or livery conveyance drivers#

Where the Uber driver’s personal policy is not available for any reason, however, Uber does voluntarily provide its drivers with a commercial insurance policy that “covers drivers’ liability from the time a driver accepts a trip request through the app until the completion of the trip.” Additionally, where the driver is available for service, but between trips, Uber provides a contingent policy that applies only if the driver’s personal policy completely declines or pays zero. Presently, companies such as Uber are not subject to the same regulations, and its drivers are not required to be covered under a commercial policy, as are taxicab drivers. These regulations ensure that the passengers being transported are sufficiently protected in the event of an accident. North Carolina has dealt with this exclusion by subjecting taxicab companies to specific regulations concerning liability insurance coverage. Given the business model of a company like Uber, it is likely that a North Carolina court would determine that the insured vehicle would be operating as a public or livery conveyance, such that insurance coverage would be excluded under the driver’s personal automobile policy. Though North Carolina courts have not specifically defined “public or livery conveyance,” other jurisdictions hold that such term is synonymous with the operation of a taxicab, where the automobile is held out to the general public for carrying passengers for hire and used indiscriminately in transporting the public.

With the arrival of “ridesharing” mobile applications such as Uber and Lyft to the Raleigh-Durham area, consumers have access to easy Triangle travel but should be aware of potential risks and liability of the driver.Īccording to Uber’s website, when a consumer chooses to solicit a ride through “UberX,” the majority of the drivers are “rideshare drivers providing transportation with their personal vehicles.” While Uber requires these drivers to carry personal insurance policies, North Carolina’s standard personal automobile policy excludes coverage for an “insured’s liability arising out of the ownership or operation of a vehicle while it is being used as a public or livery conveyance.”