Many of you might be considering earning some extra money using a service like Uber or Lyft. These are some great ways to make a little green in your pocket here are somethings to consider and what they are.
With the Transportation changes, Ride-sharing is the practice of using your personal automobile to pick up someone and give them a ride to a specific destination for a fee. The potential driver signs up with a Transportation Network Company (TNC) such as Uber or Lyft that generally check the individual's background, driving record and inspect the vehicle. Once the person is approved as a driver POOF! That person is then allowed to sign into the app as a driver and can begin to pick up riders. While at first this sounds like a great idea and a way to make extra money, there are many issues involved. These apps have some gaps that need to be addressed. Taxis and limousines are highly regulated services and believe that these regulations should also apply to the TNCs. States have concerns about consumers and drivers not being aware of the insurance issues involved and finding themselves not covered by insurance if an accident occurs. Many of the concerns with ride-sharing center around the driver's lack of coverage on his personal auto policy when signed in to the app to look for a passenger. This makes the vehicle "for hire," which is excluded in most personal auto policies. Uber and Lyft provide contingent coverage during stage one; the contingency is that the personal auto policy denies coverage. While Uber's coverage is above state minimum limits, it still only covers up to $50,000 for bodily injury for an individual, up to $100,000 for bodily injury for everyone in the vehicle, and up to $25,000 for property damages, or as seen in the policy, simply 50/100/25. Workers' Compensation becomes an issue as well; are the drivers independent contractors or employees of the TNC? This is still open to debate; TNCs often state that drivers are independent contractors using their own equipment and setting their hours, while drivers claim that the TNCs are providing work for the driver and are themselves providing a driver for hire. There are various suits by drivers claiming that they should be considered employees and not independent contractors. This is an overview of some emerging technology that have already impacted many of us for the good and the bad! With new technology many things have not been addressed. When looking for ways to make extra money you want to make sure you are properly covered, this way all your hard work and time are not wasted. Please share your thoughts with us and let us know if you have any questions!
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November 2019
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