Regardless of why, many people purchase insurance to cover the cost of repairing their vehicle should it be damaged in an accident. Or maybe it’s because you don’t have enough extra money to pay for it yourself. Maybe it’s because your lender requires it. However, many policies will exclude UM and UIM to passengers if they are injured while the vehicle is being used as a livery conveyance.
#Livery conveyance driver#
This insurance is normally available to compensate passengers in your vehicle should they be injured in an accident caused by an at-fault driver who has no insurance (UM) or not enough insurance to pay the full cost of damages (UIM). Uninsured or Underinsured Motorist (UM/UIM) However, many policies will exclude medical payments to passengers if they are injured while the vehicle is being used as a livery conveyance. Each injured person can receive up to the full coverage limit of medical payments (for example, $1,000).
Many personal auto insurance policies include a coverage called “medical payments.” This coverage will pay reasonable medical expenses resulting from injuries suffered by the vehicle’s passengers. This means that: 1) If you cause an accident while at work transporting passengers and are determined to be the at-fault driver, and 2) You are sued by an injured passenger or by another party for damages, then 3) Your personal auto insurance will contribute no dollars to cover those damages caused, nor will it pay your legal defense costs. The point is that liability claims are unpredictable and, if not adequately covered, could prove financially devastating to the at-fault driver.Īs we’ve explained, most personal auto insurance policies exclude liability coverage if the accident occurs while the vehicle is being used as a livery conveyance. Conversely, a seemingly harmless fender bender could leave someone with a permanent neck injury. A horrific-looking accident may cause little or no injury to those involved. You might think that is not a helpful answer, but its purpose is to remind you that there is no way to predict the severity of an accident before it happens. “How much liability insurance should I buy?” When insurance professionals are asked this question, they sometimes respond, “That depends: How serious is the accident going to be?” As defined by the International Risk Management Institute, it means “the transporting of people and/or goods for hire, such as by a taxi service, motor carrier, or a delivery service.” The typical personal auto insurance policy is not designed to cover the exposures associated with a vehicle being used as a livery conveyance. “Livery conveyance” is a critical term in a typical personal auto insurance policy. To answer those questions, here’s information you need to understand about insurance coverage-or lack thereof-in a typical personal auto insurance policy: Livery Conveyance & Your Personal Auto Insurance As a ride-sharing driver, you must answer two critical questions before you accept your first fare: First, will my insurance help me if my passenger or another party is injured while I am driving for a ride-sharing service? Second, will my insurance help me if my vehicle is damaged while I’m transporting passengers for a ride-sharing company? Are You a Ride-Sharing Driver? What If Your Passenger, Another Driver, or Your Vehicle Is Injured?Īs a ride-sharing driver, you must answer two critical questions before you accept your first fare: First, will my insurance help me if my passenger or another party is injured while I am driving for a ride- sharing service? Second, will my insurance help me if my vehicle is damaged while I’m transporting passengers for a ride-sharing company?
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