Property and Casualty policies have coverage limits, and you end up being responsible for paying any costs beyond your policies standards. That is where the Personal Umbrella coverage would really shine. It is a secondary type of liability insurance that will reinforce, but also extend your original coverage of your home and auto policies. The Personal Umbrella would not take into effect until you have exhausted your liability coverage from your home or auto policies. Another quality the Personal Umbrella coverage has, is that it can protect you from legal costs and litigations arising from property damage or injuries you may have caused. In other words, you are protecting yourself from other people.

Overall, it doesn’t hurt to have that little extra coverage on your home and auto policies for those unforeseen instances you may run into. Consider having this in-expensive, extra coverage to protect your financial future and assets. Remember, the more assets you have, the more coverage you will need. That being said, Personal Umbrella coverage should bring you some peace of mind for the “just-in-case” scenarios that are unforeseen.

By: Valerie Pristupa

The post ‘That Little Extra Coverage’ appeared first on Curran Cooney Penny Agency.

While reviewing a Personal Auto Policy renewal for a client, I noticed that a new form had been added to the list of endorsements and forms. It was called “Ride Sharing Advisory Notice 1.” It immediately caught my attention and I had to pull it up to read it in more detail. It brought to the forefront of my mind what most insurance agents already know: The Personal Auto Policy (PAP) contains an exclusion for liability while the vehicle is being used as a public or livery conveyance.

My blood froze for a moment as I realized that consumers are probably not aware of this potentially rather far reaching drawback! All kinds of questions popped up such as if e.g. the Uber car I was a passenger in got broadsided and I was severely insured or disabled, who’s policy would cover me? We just learned that there is a potential gap in coverage with the exclusion for liability while the vehicle is being used as a public or livery conveyance. How would my medical expenses be paid? Usually health insurance doesn’t cover for car accidents but if it did I am still subject to co-insurance and co-pays. What if I was rear-ended by a ride-sharing car and the driver of the ride-sharing car was clearly at fault, would that driver’s Auto Insurance Provider deny coverage because he was using the vehicle as a public or livery conveyance. What recourse would I have if any? I thought about our customers who might be using their vehicle as a ride-sharing vehicle in order to make a little extra cash on the side. If they had an accident and their passenger got injured and sued them could they potentially go bankrupt? Is that extra cash on the side worth it? Are you really saving $10 on an occasional taxi trip if you risk having to dip into your savings to cover your medical bills if you’re injured?

Three weeks ago I had a concert to go to in NYC with one of my friends. We had to go from Penn Station to 82nd Street on the West side. Her daughter-in-law had shown her an app for Lyft and my friend suggested we use it. She was quite excited about it; mostly about “the money we would save” and not having to use the subway. Needless to say that being an insurance agent, I opted to take the subway. My second choice would have been a yellow cab.

Ride-sharing arrangements through Transportation Network Companies (TNCs) are all the rage in this world of smart phone apps, immediate gratification and rooting for the “little guy” by thinking you’re pulling one over on the Taxi and Limousine Commission. TNCs do have insurance policies in place of course being a business 2. But regardless, prospective drivers and passengers should inquire what kind of coverage is provided before getting behind the wheel or in the backseat. In addition, coverage will vary from state to state. State legislators and state insurers are starting to address the gaps in coverage to better protect the drivers and the passengers 3.

Today is New Year’s Eve and hopefully most people will make the right choice to not drink and drive. But before you pull out your smart phone to arrange for a ride, consider the potential long term consequences. Should you decide that the odds are in your favor ask a few questions of the driver about the level of coverage in place. In the end, however you decide to get home, we hope you get home safe and that you are ready to start a new year on January 1st. May your New Year be filled with prosperity, good health and great conversations with your insurance agent!

1: The Kemper PDF “Ride Sharing Advisory Notice. “
2: https://newsroom.uber.com/certificates-of-insurance-u-s-ridesharing/
2: https://www.policygenius.com/blog/insurance-secret-uber-doesnt-want-know/
3: https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201320140AB2293
3: https://www.colorado.gov/pacific/sites/default/files/14-07%20UberIB.pdf
Other references:
http://www.iii.org/article/ride-sharing-and-insurance-qa
http://www.ohiopia.com/newsdetails.aspx?article=150241280
http://www.ohiopia.com/Uploads/Documents/eNews2015/rideshare_consumer_flyer.pdf
http://sfist.com/2014/09/26/district_attorneys_call_uber_lyft_a.php

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