Using Your Vehicle for a Profit? Know the Exclusions & Limitations

April 2, 2014 at 10:51 AM | Posted in Auto | Leave a comment
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Uber, Lyft, and SideCar are some of the new business services popping up that use smart phone technology for vehicle owners who combine availability with ride sharing or taxi service.  These companies work from a mobile phone application, allowing potential riders to connect with potential drivers for a fee.  Whether you choose “ride-sharing” or transportation for hire, there are definite limitations on your personal auto policy that you need to be aware of:

  • Every Massachusetts Auto policy has a public or livery conveyance exclusion that applies to most of the coverages, including property damage and bodily injury to others.  This means that if you are acting as a livery service (carrying passengers for hire) at the time of an accident, your insurance company could deny coverage.
  • The Vehicle Sharing Exclusion, new to Massachusetts, states the insurance company will not pay any claim for injury or property damage under the policy while your auto is being used in a personal vehicle sharing program.
  • Most of these programs offer their own coverage as excess in addition to the driver’s personal insurance policy. Programs may offer to pay from dollar-one if the primary insurance is not available. However, depending on the circumstances at the exact time of the claim there could be a question as to whether or not their coverage will respond.

It is always better to be safe than sorry. Before you sign up for any of these new business ventures involving the use of your personal vehicle, call Protector Group at 888-850-9400 to discuss your coverage and any exclusions that may apply.


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