ride-sharing technology services gain popularity across the country, the Nevada
Division of Insurance is informing Nevada consumers that such for-profit
ride-sharing arrangements can put them at risk of being uninsured.
technology companies offer transportation services for a fee using smart phone
applications to connect potential passengers with drivers offering their
personal vehicles. When consumers use their own private passenger automobiles
to transport individuals for a fee, they risk driving without proper insurance.
Important Information for Consumers
need to be aware that when utilizing these types of ride-sharing technology
companies that they may be driving with someone who is uninsured. This puts
passengers at financial risk should they be involved in an accident and are
injured. The Division recommends that passengers ask to see proof of commercial
liability insurance before accepting a ride.
a vehicle to carry passengers for a fee is typically known as livery services,
and requires a commercial auto insurance policy.
personal auto insurance policy will not pay for damages to the driver’s
vehicle, or injuries to the driver, the passengers or third-parties as a result
of a commercial venture.
personal auto insurance policies exclude coverage for drivers using their personal
vehicles for commercial purposes. In addition, the failure to disclose such
commercial use of the vehicle to the insurer may result in the insurer
canceling the personal auto policy for misrepresentation.
wishing to use their vehicles for a commercial venture or to provide livery
services should notify their insurance company and discuss their options with
their insurance agent or carrier.
share-the-expense carpooling or ride-sharing arrangements in which friends,
neighbors, or co-workers share driving duties and the cost of gasoline are not
considered commercial-type activities and are typically covered by individual
About the Nevada Division of Insurance
State of Nevada Division of Insurance is a division of the Nevada Department of
Business and Industry. It is the state agency that protects the rights of
Nevada consumers and regulates Nevada’s $11.7 billion insurance industry. It
has offices in Carson City and Las Vegas. In 2013, the
Division investigated more than 2,600 consumer complaints and recovered more
than $3.8 million on behalf of consumers. For more information about the
Division of Insurance, visit DOI.NV.GOV.