Insurance, Risk Management and Rideshare

Insurance, Risk Management and Rideshare

Rideshare services typically rely on GPS-enabled smartphones, since their apps need to know the location of both drivers and riders.  In today’s technology-driven marketplace, data collection, privacy, and data protection should be at the top of everyone’s list.  Rideshare has only been around for about 15 years.  It offers a convenient, cost-effective alternative to public transportation. Rideshare is an efficient mode of transportation for people who don’t want to own cars.  Rideshare can be risky, especially if you don’t know the history of the driver, other riders or the vehicle. It’s more important than ever to protect yourself by identifying, monitoring and managing as many of the risks as possible.   

Who Uses Rideshare?

The percentage of Americans using rideshare services has more than doubled since 2015, to 36% of American adults. Rideshare demographics show that:

  • - 51% of users were age 18 to 29
  • - 43% of users were age 30 to 49
  • - 24% of users were age 50 or more

People use rideshare for a variety of reasons including:

  • - Don’t own a vehicle
  • - Use rideshare over car rental for cost savings
  • - Getting a safe ride to and from places and events where alcohol will be consumed
  • - Being able to use the carpool lane during rush hours
  • - Costs savings compared to owning a car or using mass transportation.

How Does Insurance Work in Rideshare?

Rideshare employers usually require drivers to have personal car accident insurance policies to cover them when they are waiting for passengers or driving without rideshare passengers. Typical car insurance covers personal driving only, not commercial driving for employment.  Rideshare employer insurance is needed to ensure that drivers are covered when their personal car insurance doesn’t apply.  Employer rideshare insurance policies typically cover the driver’s liability to passengers, any injuries due to uninsured or underinsured motorists, and collision and comprehensive coverage. Property damage and bodily injury are covered with employer rideshare insurance. In-vehicle cameras (Display Ride) are a practical risk management strategy because it can help resolve many legal issues related to accidents, because it provides real-time footage of what happened in front of the vehicle and in the interior of the vehicle at the time of the accident. If a driver is involved in an accident where injuries occurred, they should get in touch immediately with the attorney representing the ride share company (The Employer). The employer's attorney can guide you through the next steps to take as you report the accident to the rideshare insurance company.

Risk Management

In business, risk management is defined as the process of identifying, monitoring and managing potential threats in order to minimize the negative impact they may have on an individual or an organization.  Ride Share drivers can be victims or perpetrators.  That is why background checks of drivers are needed as a risk management strategy.  Ride Share riders can be victims or perpetrators. That is why background checks of riders are needed as a risk management strategy. Vehicle defects can cause accidents.  That’s why regular vehicle inspections are a practical risk management strategy.  Ride Share Security is the state of being as free as possible from danger, risk or threat.  The Reliable Rider Members Only Ride Share System is designed to maximize security for Club Drivers and Club Members.  For further discussion see Risk Management Delivers Security in Ride Share.


Covid-19 creates a potential threat in rideshare because it’s highly contagious.  To protect against getting Covid-19 while you’re using rideshare make sure to wear a face mask at all times. Studies show that wearing face masks significantly slows down Covid-19 transmission. While you’re in the car, ask your driver if they can also roll down the windows. Research shows that your risk of catching the virus is also significantly lower in outdoor air versus stagnant indoor air.  

Reliable Rider Clubs Provide Cost-effective Transportation

Reliable Rider is a Members Only Ride Share System. The cost of individually owning and operating an auto is expensive and it includes: purchasing and financing the car, depreciation, insurance, maintenance, tires, fuel, insurance, repairs, taxes, license, title and registration. For vehicles driven about 15,000 miles a year, average car ownership costs were $8,469 a year, or about $706 a month, in 2017, according to AAA. Club members pay $250 per month for up to 250 miles of transportation in that month. If a club member uses more than 250 miles of transportation in any month, their credit card will be billed $1.50 per extra mile. Club members will have access to the records of number of rides provided and miles used by club members. Club members can book their ride pickup time and location and the destination location up to 90 days in advance. Other club members can share the same ride if their pickup location and destination location align with the route.  Register your interest in becoming a member of a Reliable Rider Club.  Register your interest in becoming a driver for a Reliable Rider Club. 

Contact us with any questions you may have.

  • Posted by Admin
  • May 13, 2022
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