Commissioner Nick Gerhart has cautioned drivers that signing up for these programs could negate their coverage.
The Iowa insurance commissioner, Nick Gerhart, has released a statement of caution to drivers in the state who are considering participating in ride sharing services, such as Uber, as signing up to give people drives under this type of program could nullify their auto policies.
While the Uber service has not yet made its way into Des Moines, the company has been looking at the city.
That said, the commissioner spoke in advance of the ride sharing service’s potential arrival in the state, in order to make sure that drivers are aware that they may not have the auto insurance coverage that they believe they have if they sign up for this popular program. As Uber sets its sights on Des Moines, it will be important for drivers to better understand the coverage that they have and how it will be impacted from the moment that they accept a request for a drive.
Iowa auto insurance policies may not cover damage while performing ride sharing services.
This is not good insurance news for people who had been hopeful that they would be able to either drive or obtain a ride through this type of program. According to Commissioner Gerhart, “Programs such as Uber, Lyft, VRBO and Airbnb may offer consumers great service and convenience, but as a regulator, I want potential providers and users to be aware of the very real problems they could face without knowing about these restrictions.”
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Uber is just one of several different companies that help people to be able to use their own personal vehicles to drive others around in a kind of arranged carpooling system within certain urban areas. That company has been advertising for drivers within Des Moines, though a spokesperson for Uber has stated that there has yet to be any specific timeline for the arrival of the service into that city.
The ride sharing company has responded to the caution of the insurance commissioner by saying that “In the U.S., our driver partners are covered by $1 million in commercial insurance and $1 million in uninsured motorist insurance. … (Our policies) far exceed the coverage offered by other transportation providers.”