A Non-Owned Auto Liability policy is an alternative, less costly and broader coverage option to Rideshare insurance.
Rideshare services such as Uber and Lyft are changing the way we travel around cities, and many city dwellers who do not own personal vehicles rely on these app-based services as their primary mode of transportation. Often overlooked is the insurance for these modern conveniences. As a passenger, what is our true exposure when participating in ridesharing? With no personal primary auto insurance, can passengers rely on Uber and Lyft for medical coverage in the event of an accident? In an era of costly health insurance and high deductible plans, many are at risk for high out-of-pocket expenses from accidents completely out of their control as a passenger in a rideshare. Is there an easy and cost efficient way to protect you as a passenger?
For occasional Uber and Lyft riders [As of June 14, 2018] the answer is yes. SURE Insurance created the “Rideshare” app which provides passengers with the ability to purchase medical, accidental death and severe injury coverage on an episodic basis straight from their smart phone. The SURE application is linked directly to the Uber or Lyft app, and once activated, customers will receive automatic coverage for each ride taken during a 24 hour period at a rate of $2.40 for $10,000 medical and $100,000 accidental death and dismemberment. SURE is underwritten by Chubb insurance, one of Alper’s leading carrier partners.
However, for a person who frequently needs ride share apps and borrows or rents cars, an alternative, less costly and broader coverage option would be to purchase your own non-owned auto policy.
Non-owned auto coverage is essentially a personal auto policy without owning the vehicle; providing primary liability, uninsured and underinsured motorist coverage, as well as medical payments and in some cases property damage coverage.
With an average annual premium of approximately $600 for $500,000 in liability coverage and $10,000 in medical coverage, this is a safe and cost effective route to transfer your risk and minimize your out of pocket expense.
For more information on personal insurance coverages, please contact Michel Jones, Alper’s Director of Personal Lines, at MJones@AlperServices.com or 312-867-7314.