"WHO'S DRIVING YOU?"

The following is a statement by Who’s Driving You?, the public safety initiative of the Taxicab, Limousine & Paratransit Association. The statement refers to letters sent by the San Francisco and Los Angeles district attorneys to Uber, Lyft and Sidecar stating the companies are operating illegally and that their practices represent “a continuing threat to consumers and the public.”

Specifically, the district attorneys are stating that “ridesharing” companies mislead customers by claiming their background checks screen out drivers who have committed violations such as DUIs, sexual assaults and other criminal offenses.

The district attorneys are stating this is absolutely untrue and call on Uber, Lyft and Sidecar to remove all statements that their background checks reveal drivers’ complete criminal history from all marketing literature and mobile apps.

“Uber, Lyft and Sidecar refuse to admit they provide taxicab service as part of an ongoing effort to avoid business costs. A portion of taxicab licensing costs go toward paying for law enforcement administered criminal background checks, many of which go through the F.B.I.—the most comprehensive background checks available anywhere.

The announcement emphatically states that “ridesharing” companies’ lack of corporate responsibility is directly placing consumers at terrible risk.”


By Dave Sutton, Spokesperson, ‘Who’s Driving You?’ a public safety initiative of the Taxicab, Limousine & Paratransit Association.

If you need any further information feel free to contact Dave at (301) 873-2393.


TAXICAB, LIMOUSINE & PARATRANSIT ASSOCIATION RESPONDS TO UBER HIRE DAVID PLOUFFE’S INITIAL STATEMENT

ROCKVILLE, Md.— Following the announcement that Uber has hired David Plouffe, a former presidential campaign manager, Plouffe issued the following statement:

“We’re on an inexorable path of progress here,” Plouffe stated in news outlets. “Uber is making transportation safer. It’s providing jobs; it’s cutting down on drunk and distracted driving. I think the mission is really important.”

The Taxicab, Limousine & Paratransit Association (TLPA) is responding to this initial statement point by point.

Plouffe: “Uber is making transportation safer.”

TLPA response: Uber is the very reason that public safety concerns with so called ‘ridesharing’ companies have emerged. Uber’s shoddy background checks have resulted in passengers being physically, sexually and verbally assaulted—sometimes by convicted felons. The situation has become so dire that last month Uber announced Rudy Giuliani’s firm would conduct an audit of the company’s notoriously insufficient background checks.


Plouffe: “It’s providing jobs.”

TLPA response: Twenty states plus Washington, DC and most recently the National Association of Insurance Commissioners have warned drivers that driving for ‘ridesharing’ companies Uber and Lyft could result in severe financial consequences as the result of inadequate insurance. In the latest warning, Iowa warns drivers to check with their insurer in order to avoid “devastating financial losses due to uncovered claims.” Moreover, Uber drivers have been protesting the company’s rate cuts and have established a national class action lawsuit against Uber alleging the company has been stealing driver tips. See http://www.whosdrivingyou.org/insurance-warnings.html for more information.


Plouffe: “It’s cutting down on drunk...driving.”

TLPA response: Drunk driving has been on the wane for a number of years. Although there have been recent anecdotal reports of Uber helping to reduce drunk driving, taxicabs and limousines have been doing the same, without self promotion for decades.


Plouffe: “It’s cutting down on...distracted driving.

”TLPA response: This is simply outrageous. Uber is currently involved in a wrongful death lawsuit as the result of an Uber driver killing six-year-old pedestrian Sofia Liu in San Francisco. A key element of the wrongful death suit is that California is a hands-free state and Uber’s business model requires drivers to handle their phones frequently in order to respond to app requests.

Sofia Liu’s mother, Huan Hua Kuang, has described how the last thing she saw before her daughter was killed was Uber driver Syed Muzzaffar looking at his smartphone: “I saw the driver. His face was lit up by the light of the phone. That was the last thing I remember before my daughter lost her life,” said Kuang.

“In case anyone is unaware, Uber has refused to compensate Sofia Liu’s family, after directly contributing to the child’s death, stating its insurance had no coverage for the period while the driver was cruising around waiting to be contacted. Uber’s lack of insurance for this scenario was the direct result of the company’s cynical and selfish decision to cut critical business costs associated with protecting public safety.

To claim that Uber is making transportation safer is so outlandish it strains credulity,” said Dave Sutton, spokesperson for ‘Who’s Driving You?’.

Robert Werth, TLPA president commented on Uber’s hiring of Plouffe: “Although David Plouffe is an acknowledged political strategist he’s going to have his hands full messaging on behalf of Uber.

Plouffe’s opening statement contains obvious falsehoods so he’s off to a rocky start. Hopefully, Plouffe will be able to convince Uber’s leadership to simply obey the law and comply with the same public safety requirements that licensed providers do.”


ABOUT US:

‘Who’s Driving You?’ is a public safety campaign designed to educate the public about the dangers of unlicensed transportation companies. It is an initiative of the Taxicab, Limousine & Paratransit Association, an international non-profit trade association whose membership consists of 1,100 licensed transportation companies. For more information, visit www.WhosDrivingYou.org, follow us on Twitter (@WhosDrivingYou) and follow us on Facebook (facebook.com/WhosDrivingYou)


INSURANCE WARNINGS

The following states have officially issued alerts to warn consumers about the dangers of so-called 'ridesharing' companies due to the lack of sufficient insurance coverage.

Click on each individual button below to read more, or right click "save-link-as" to download.

 


National Association of Insurance Commissioners

SHARING A RIDE, BUT NOT INSURANCE:

Ridesharing drivers may face insurance coverage gap.

You may have seen cars sporting fuzzy pink mustaches in your city, or maybe you’ve thought about using your own vehicle to make some extra money giving rides. Ridesharing services, such as Lyft, Sidecar and UberX, are popping up across the country and becoming an increasingly popular way for people to earn money. However, state insurance regulators have concerns about potential gaps in insurance coverage.

The National Association of Insurance Commissioners (NAIC) and its members are urging consumers to consider these tips before picking up their first passenger.

If you are thinking about hiring a driver through a ridesharing service, check out this consumer alert first.


Understanding Ridesharing

Note: For the purposes of this consumer alert, 'ridesharing' is used to describe the practice of driving for hire using an online enabled platform to connect drivers who are using their personal vehicles with passengers.

Ridesharing uses mobile technology to connect passengers to drivers. Instead of hailing a cab from the curb or calling an 800 number, consumers download an app to their smartphones that allows the customer to request a ride. The app also allows users to get price quotes for their trips, track the driver's location, and to pay their fare using a credit card on file.

These services are provided by transportation network companies (TNCs). The three major TNCs are UberX, Lyft and Sidecar, although more TNCs are joining the market. TNCs allow drivers to use their personal vehicles with personal lines auto insurance to transport passengers and earn extra income.


Protect Yourself as a Driver

As ridesharing becomes more popular, state insurance regulators have grown increasingly concerned about the insurance implications of ridesharing for consumers and the TNCs. The main issue is a possible gap in insurance coverage between the driver’s personal automobile insurance policy and the TNC’s commercial policy.

Before driving for some TNCs, a driver must prove that he/she has a valid personal auto policy. In addition, the major TNCs have policies on their drivers that include commercial auto, liability, and collision coverage. Some TNCs also offer uninsured/underinsured motorist coverage.

Check out Insure U for help understanding the different types of auto insurance coverage.

Most standard personal auto insurance policies list exclusions for livery, or using your personal vehicle to transport passengers for a fee. Some policies may go even further and list exclusions for when the driver is available for hire. Other policies may be silent concerning coverage during the period when the driver has engaged the app and is looking for passengers, but has not picked up a passenger.

Drivers should not assume the lack of a specific exclusion means they have coverage. Insurance regulators have noticed possible gaps in coverage where a TNC driver may not be protected in the event of an accident. In some cases, it is unclear if a driver’s personal auto insurance or the TNC’s commercial insurance is expected to cover an accident.


Understand What's Covered

Before signing up to drive for a TNC talk to your insurance provider about what your personal policy may cover if you are involved in an accident. Be aware that some providers may not insure you if you choose to conduct commercial business with your personal vehicle. Others may offer to provide coverage for additional premium. You will also want to ask the TNC questions about its commercial policy. Some questions you should ask include:

  • How much liability insurance does the TNC provide while I'm transporting a passenger? Is it enough?

  • Will I be charged a deductible? If so, how much?

  • Is the commercial liability insurance coverage my main source of coverage, or is it supplemental to my personal auto policy?


Find out what is covered by the TNC's commercial policy if you are involved in an accident in each of the following circumstances:

  • You are available for hire (logged into your ridesharing app) but not transporting a passenger.

  • You are logged into your ridesharing app and transporting a passenger.

  • You are unavailable for hire (not logged into your ridesharing app) and not transporting a passenger.


Depending on the TNC you drive for, you may need to consider buying a commercial policy that provides liability insurance as well as comprehensive, collision, medical payments, and uninsured/underinsured motorist coverage. This will ensure that you are properly protected if you get into an accident while you are driving for hire.


More Information

Contact your state insurance department to find out how it is handling matters involving ridesharing. You can also learn more about your state's requirements for personal auto insurance.

For more information about your insurance needs and tips for choosing the coverage that is best for you and your family, visit Insure U (http://www.insureuonline.org/).


About the NAIC

The National Association of Insurance Commissioners (NAIC) is the U.S. standard setting and regulatory support organization created and governed by the chief insurance regulators from the 50 states, the District of Columbia and five U.S. territories.

Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight. NAIC staff supports these efforts and represents the collective views of state regulators domestically and internationally.

NAIC members, together with the central resources of the NAIC, form the national system of state based insurance regulation in the U.S. For consumer information, visit insureUonline.org.


INSURANCE COMMISSIONER OFFERS COMMENTS TO POTENTIAL RIDE-SHARE APP SERVICE PROVIDERS

Those who car-share (UBER, LYFT passengers) may be equally liable with those who ride-share (UBER, LYFT driver) for damages in the event of an accident.

Thinking of Entering into a Ride-Sharing or Car-Sharing Arrangement?

Insurance Commissioner offers some points to consider

Des MOINES - Recent newspaper and broadcast coverage in Des Moines have featured stories about a relatively new combined use of mobile connectivity and willing drivers of their private autos to create a new transportation option. The company mentioned in that coverage is called Uber. That company has created an app for smartphones from which a person can book and pay for a ride while contracting individuals to provide the transportation the app arranges. A similar transportation plan also exists under the business name Lyft.

The Iowa Insurance Division (IID) cautions drivers who enter into services that connect drivers, riders, and vehicle owners for car-sharing and ride-sharing that they may not be covered if their vehicle is damaged or someone is hurt.

These fee based services may pose hidden risks if the rider, driver, or vehicle does not have specific insurance coverage for that activity. If an accident occurs while someone else is riding with you or driving your car, the typical private passenger automobile policies may not provide coverage for any liability incurred.

Those who ride-share with passengers or own a car-share vehicle may need commercial coverage. Drivers who car-share may want to get their own “non-owned vehicle” policy if they drive other people’s vehicles to be sure they are protected. Typically, a commercial automobile insurance policy is necessary to provide a vehicle for rent or to transport property or passengers for compensation.

There is also a risk to the consumer of the services just as is the case for the provider. There are already court cases in which the person who ordered a ride is being named in lawsuits against a driver arranged through one of these services. The Insurance Division is doubly concerned to see a satisfactory approach to drivers being properly covered.

To be clear, this alert is not about a traditional car pooling arrangement by friends or neighbors who share the cost of gasoline or take turns driving. This is not the situation being addressed. Those types of arrangements typically are not a problem.

If you are considering becoming a driver / ride provider, the Iowa Insurance Division suggests that you visit with your insurance company or insurance agent before you sign up for car-sharing or ride-sharing.

IID offers five helpful tips for Iowans who may plan to sign up for car-sharing or ride-sharing arrangements:

  • Review carefully any type of agreement involving car-sharing or ride-sharing.

  • Before you decide to rely on insurance that is provided by others, be sure to get a copy of the policy and ask an insurance professional to make certain it covers all of your exposures.

  • If using such a service, evaluate who may be responsible if you are injured and whether coverage will be available.

  • Talk to your insurance company or agent to see what is and isn’t covered. The exclusions in your personal automobile policy for this type of use will likely apply to all types of coverage including:
    1. liability to third persons,

    2. uninsured and underinsured motorist coverage,

    3. medical payments for people using or occupying your vehicle,

    4. comprehensive physical damage coverage,

    5. collision physical damage coverage, and

    6. limits on the insurance company’s duty to defend you in a lawsuit.
  • If the car-sharing or ride-sharing service provides some type of “umbrella” insurance, find out if that coverage includes the duty to defend you in a lawsuit.


Exercising caution and reviewing your insurance program may go a long way to protecting your financial well being.

In a similar vein, new uses of one’s home for rental under internet based short term arrangements are occurring everywhere, including in Iowa. Well known service arrangements are the ones under Vacation Rental By Owner (VRBO) and Airbnb.

Just as is the case for automobiles, residences that are rented out under these arrangements are probably being used in ways not anticipated by their insurer when they priced and wrote the policy. Insurers will typically have exclusion language in their insurance policies that preclude payment for homes used other than just as the policyholder’s residence. This can result in a justified non-payment of claims for such important risks as fire, theft, and liability, along with a host of other potential losses.

“Innovative new uses for technology to make our lives easier is leading to some terrific ideas,” said Iowa’s Insurance Commissioner Nick Gerhart. Programs such as Uber, Lyft, VRBO and Airbnb may offer consumers great service and convenience, but as a regulator, I want potential providers and users to be aware of the very real problems they could face without knowing about these restrictions.”

The Iowa Insurance Division recommends that property or vehicle owners considering earning income through any of these services should always check with their insurance agent and/or company in order to avoid devastating financial losses due to non-covered claims.

 

 



© 2014 TLC Magazine Online, Inc.