Uber Ridesharing Gains Traction

The introduction of ridesharing services into the state continues to cause a stir. Late last week, the Pennsylvania Public Utility Commission (PUC) – somewhat reluctantly – granted Uber X an experimental, two-year license to operate in most of the state (Philadelphia excluded).

The PUC and ridesharing services, like Uber X, share a brief but acrimonious history. At issue are concerns over insurance, safety and regulations, which Uber X has a tendency to ignore, writing them off as antiquated and inapplicable.

Insurance concerns
Uber and Lyft, another major player in the ridesharing industry, assert that their commercial liability coverage is sufficient and that no insurance gaps exist. However, you may want to encourage your affected customers – drivers and passengers – to be conscious of potential exposures. Concerns include:

• At what point coverage provided by ridesharing companies becomes effective for drivers
• What kind of coverage ridesharing companies provide and what the limits are
• The fact that most personal auto policies contain livery exclusions, which would not provide coverage for ridesharing drivers

Of note: Erie Insurance this week announced a new coverage option for ridesharing drivers. The carrier is first offering the coverage – which applies before, during and after the trip – in Illinois and Indiana and may extend its availability depending on consumer response.

Legislative response
As reported in previous Agent Headlines articles, the state legislature is considering regulatory steps to address concerns with ridesharing companies and to establish frameworks within which they must operate. Several ridesharing bills were introduced this session and became the subject of committee hearings, but none advanced. Due to the session change, the bills will require reintroduction next year.