Insurance woes plague growth of rideshare companies


Gigaom

While ridesharing companies like Uber, Lyft and Sidecar continue to expand their reach, the biggest threat to their success could be the mundane task of owning auto insurance. According to a report from Reuters, the nuances of insurance policies are preventing lawmakers from feeling comfortable having rideshares on the road — and one city even drove a company out of town.

The dilemma boils down to how, when and where drivers for a rideshare are covered by their employee’s auto insurance versus their own personal insurance. While companies like Uber have specific insurance that kicks in when a driver is transporting or on his way to a client, that policy does not cover accidents that happen while a driver is waiting to pick up fares. Worse, an auto insurance company can deny the claims that a driver makes while waiting for fares because ridesharing technically requires a commercial auto…

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