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Kiplinger
Kiplinger
Business
Karl Susman, CPCU, LUTCF, CIC, CSFP, CFS, CPIA, AAI-M, PLCS

How Does Car Insurance Work for Ride-Sharing Drivers?

A ride-sharing driver talks with his client in the back seat of his car.

Remember taxis? Those cars out there, some of them a distinctive yellow with a black-checkered strip along each side, that pulled up when you yelled, “Hey, taxi!” You’d pop in, carefree as can be to have a stranger drive you where you want to go, and off the car went. Did you ever stop to think about whether the driver had insurance, or if they had tickets or accidents on their record? Heck, were you sure anyone had even checked to see if they had a driver’s license? I’ll answer for you: No. Not only did you not give it a second thought, you probably didn’t even care, because you assumed these things were all properly regulated and someone was looking out for you.

Enter ride-sharing. Anyone can be your driver now! Heck, any of your relatives who scare you with how they drive can now earn some coin by downloading an app, getting behind the wheel and giving strangers a ride. What a world! So let’s tick through that list again. Has anyone checked their driving record, insurance or criminal convictions? For some reason, those answers are more complicated.

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