At Lighthouse Insurance, we are experts in all kinds of insurance, but our specialty is insurance for public transportation. As everyone knows, Transportation Network Companies (TNC) such as Uber and Lyft have exploded in size in Massachusetts, with an estimated 70,000 drivers.
The type of insurance TNCs have is unique in the insurance world. It is split into three different tiers based on the status of the TNC driver. Tier 1 is when the driver is on app with no job. During this time, coverage is afforded under the TNC’s policy with a $50,000 limit for Bodily Injury coverage per person and $100,000 per accident (50/100 liability limits). Tier 2 begins once a ride has been accepted. Once the passenger is picked up, Tier 3 starts. TNCs are required to cover Tier 2 and 3 at a $1 mill limit for liability.
Tier 1 is the part of this structure that puts the driver at risk. First, there is now a standard exclusion for TNC activity on every Personal Auto Policy in Massachusetts. Your Personal Auto Policy will not cover you if you get into an accident while driving for a TNC, and insurance companies have learned to recognize these claims. Secondly, the driver could be on multiple platforms at once, so there can be confusion over which TNC would be responsible if there were an accident. Lastly, they only provide 50/100 liability limits, while a driver may want more coverage during this Tier.
Luckily, Plymouth Rock Assurance has come out with an endorsement for personal auto policies that will cover Tier 1 on an individual Personal Auto Policy for a minimal charge. Having this endorsement eliminates confusion over which TNC would be responsible if you were driving on multiple platforms while also giving you the ability to control the limits and coverages on your policy. Ultimately, having this endorsement gives you peace of mind and more control, as opposed to relying on TNCs to handle a liability claim.
As experts in insurance, especially when it comes to the transportation world in Boston, we highly recommend taking advantage of this coverage to insure your own livelihood and assets. For a no obligation quote, call us at 617-464-3777 or visit our website.