Will Ride-Sharing Companies Drive up Auto Insurance Rates for Everybody?
Transportation network companies, also known as TNCs or ride-sharing companies, are popping up in more cities across the U.S. With names like Uber, Lyft, and Sidecar, these entities allow a person to set up and pay for a ride using a smartphone app or computer. But TNCs don’t maintain their own fleets of cars; instead, they allow regular drivers to “rent” out their personal vehicles to those who want to earn more as ride-sharing drivers.
It’s this latter aspect which is drawing the ire of some people in the insurance business. They claim that ride-sharing services are effectively driving up the rates of personal auto insurance policies for all other drivers in the areas in which they operate.
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Of course, it’s unethical to knowingly give false information when obtaining Car Insurance quotes. But there are two more practical reasons for being truthful. First, your insurer will check your personal and driving records to verify the information you have submitted anyways. Second, if you do manage to secure a policy with inaccurate information, it’s likely that your policy will be voided when you file a claim if your lie gets brought to light. That could leave you in a serious financial bind.
