Arizonans use a variety of ways to get to and from their daily activities. Many own cars or carpool, while others use public transit, taxis, limos or take advantage of ride-sharing services.
In recent years, ride-sharing services, such as UberX and Lyft, have become increasingly popular. UberX launched in the Phoenix metro area in 2012. Lyft entered the market last year, and both are in Tucson.
These alternatives to taxi services, although operating nearly in the same manner, equip consumers with the ability to request a ride with their smartphones. The request is sent to a driver who is ready for hire; that driver then accepts the ride and uses his personal vehicle to transport passengers to their destinations.
It seems simple enough, until you consider that these services may be putting all road users at risk. After all, most people do not realize that these drivers are only covered under personal auto insurance policies. However, because of the nature of the ride, their personal policies may never kick in.
A personal auto policy generally excludes liability coverage and medical payment coverage if the insured’s vehicle is being used for commercial use, such as for ride-sharing services. There are also exclusions for collisions with an uninsured motorist. In essence, personal auto policies are meant just for that — personal use.
As such, if a passenger were to get injured in a collision while using a ride-sharing service, the driver’s personal auto policy wouldn’t cover it. Instead, the driver would bear sole financial responsibility. And if the driver doesn’t have enough money to cover the expenses, the responsibility potentially could fall on the passenger or other road user.
However, the risks aren’t limited to riders using these services. Unless drivers are properly covered, all road users are at risk. AAA believes ride-share service begins as soon as the vehicle is available for hire – not when the driver accepts the ride or a passenger enters the vehicle.
As soon as a driver signs into the system and begins seeking riders, he is operating commercially. This is how the livery industry operates; the service is considered commercial as soon as the vehicle is available for hire — not just when the vehicle is carrying passengers. Since these ride-sharing companies operate in a nearly identical manner, they should not be exempt from requirements designed to protect others they share the road with. The burden shouldn’t fall on other road users.
Unfortunately, recent tragedies have highlighted the dangers posed by ride-sharing services exempt from these requirements. On New Year’s Eve, a 6-year-old girl was struck and killed by an UberX driver in San Francisco who was logged onto the system and was waiting to receive a ride request. The company has insisted that because the driver didn’t have a passenger with him or had not accepted a ride, he was not providing services for the company.
A bill making its way through the Arizona Legislature would regulate ride-sharing networks and further protect motorists. House Bill 2273 would require these networks to register with the Arizona Corporation Commission, limit the number of passengers and conduct annual safety inspections.
However, it doesn’t go far enough. The bill doesn’t accurately define when these drivers are operating commercially and ultimately wouldn’t prevent similar tragedies from occurring closer to home.
It’s fairly simple. Ride-share companies provide similar services as taxi and limo companies. As an advocate for all road users, AAA believes these networks should be held accountable to the same operational and safety standards as their counterparts — and the motoring public should accept nothing less.
