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SOURCE Pennsylvania Department of Insurance
HARRISBURG, Pa., June 2, 2014 /PRNewswire-USNewswire/ -- As the vacation travel season gets underway, the Pennsylvania Insurance Department is reminding consumers to understand their personal auto insurance policies before participating with any of the new ride-sharing services.
"With the recent rise in Transportation Network Companies, or TNCs, which connect passengers with drivers through an online or mobile phone application, consumers may be focused on the new innovation without understanding their liability or risk exposure," said Insurance Commissioner Mike Consedine. "Learning too late of gaps in insurance coverage can have serious financial consequences for participants in these programs."
Personal auto insurance policies typically exclude coverage while your vehicle is being used in a ride-sharing service, under what is commonly known as a public livery exclusion. While some TNCs may purchase coverage for their network of drivers, this insurance may not cover all costs, including those for which you may be liable, in the case of an accident.
If you wish to be a driver or passenger with these new programs, take the steps now to be sure you have the coverage you may need.
Here are some tips:
Consumers should also be aware that certain ride-sharing services or TNCs currently have commercial applications pending with the Pennsylvania Public Utility Commission. Consumers with questions on any of these applications can click on www.puc.pa.gov and go to "search for documents."
Traditional car-pooling or ride-sharing arrangements in which friends, neighbors or co-workers share driving duties and the cost of gasoline are not considered commercial-type activities. These types of arrangements are typically covered by personal auto insurance policies.
For more information on Pennsylvania insurance products and coverage, click on www.insurance.pa.gov. Consumers with questions should call 877-881-6388.
Media contacts: Rosanne Placey or Melissa Fox, 717-787-3289
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