Such "gap" coverage is null and void. 23 State Insurance Commissioners have said so. The San Francisco District Attorney declared such coverage as fraudulent.(see SF Chronicle).
The problem is this:
Ube and Lyft state on their web sites they are NOT a transportation carrier. The are a dispatch/referral app company that receives a 20-30% referral fee from the driver. The driver is an independent businessman who uses his personal vehicle and personal insurance to transport the public for compensation. It is against the law to do so, thus the insurance is exempt from livery operations.
NO INSURANCE COMPANY CAN INSURE A NON-PERMITTED LIVERY DRIVER AND VEHICLE 24/7 PUBLIC AUTO LIABILITY (PAL) COVERAGE. Insurance fraud is a felony.
Uber and Lyft lures such drivers into their scheme to provide driving services and paying all operational costs and no regulatory fees or the expensive livery insurance (PAL) premiums. It is a losing proposition for the driver because he can not even make minimum wage portal to portal and subjects himself to criminal liability and exposure.
If an accident, injury, or death or criminal incident, his personal insurer will not pay the claim for breach of policy. Uber and Lyft's insurance will not pay either because the policy is only a commercial general liability surplus line coverage for the company only and not the driver or passenger. They have yet to pay a claim anywhere and their offshore carrier is not registered and turns away.
Other new types of "hybrid" insurance has been test marketed and consists of many legal problems. Uber and Lyft drivers will not pay the excess premium nor will switch over to these companies. The drivers will not apply for their state or local livery permits. The qualifications are stiff and rigid for a livery permit.
So the claimant has no where to go to collect a cash claim.
The public is unprotected.
All government officials, politicians, and enforcement officers should review their oaths of office and demand compliance of these rogue drivers. No company or individual can operate unregulated in a regulated industry. It is against the law.
The problem is this:
Ube and Lyft state on their web sites they are NOT a transportation carrier. The are a dispatch/referral app company that receives a 20-30% referral fee from the driver. The driver is an independent businessman who uses his personal vehicle and personal insurance to transport the public for compensation. It is against the law to do so, thus the insurance is exempt from livery operations.
NO INSURANCE COMPANY CAN INSURE A NON-PERMITTED LIVERY DRIVER AND VEHICLE 24/7 PUBLIC AUTO LIABILITY (PAL) COVERAGE. Insurance fraud is a felony.
Uber and Lyft lures such drivers into their scheme to provide driving services and paying all operational costs and no regulatory fees or the expensive livery insurance (PAL) premiums. It is a losing proposition for the driver because he can not even make minimum wage portal to portal and subjects himself to criminal liability and exposure.
If an accident, injury, or death or criminal incident, his personal insurer will not pay the claim for breach of policy. Uber and Lyft's insurance will not pay either because the policy is only a commercial general liability surplus line coverage for the company only and not the driver or passenger. They have yet to pay a claim anywhere and their offshore carrier is not registered and turns away.
Other new types of "hybrid" insurance has been test marketed and consists of many legal problems. Uber and Lyft drivers will not pay the excess premium nor will switch over to these companies. The drivers will not apply for their state or local livery permits. The qualifications are stiff and rigid for a livery permit.
So the claimant has no where to go to collect a cash claim.
The public is unprotected.
All government officials, politicians, and enforcement officers should review their oaths of office and demand compliance of these rogue drivers. No company or individual can operate unregulated in a regulated industry. It is against the law.
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