Rick Case Insurance Agency Blog
A long time ago the distinction between private cars and for-hire vehicles was fairly stark. Taxis possessed a livery license to act as a for-hire vehicle in the cities. Limousines had a special license to act as luxury vehicles for the well to do. Between them were hotel cars.
There were a handful of other types of for-hire vehicles like rental trucks or jitneys. Anyone who didn’t fall under these categories would be private vehicles. But for purposes of this article, I want to focus on the difference between private cars and for-hire vehicles when it comes to grey areas like Uber or Lyft.
Licensed vs. Unlicensed
All cars are registered and all drivers, in theory, have a license. But the license and registration requirements for a private car are lenient compared to that of a taxi. For one thing, they need to have a livery license that is usually heavily regulated.
As a result, when a private car decides to work as an Uber or Lyft, it becomes a kind of unfair competition to taxis. They did not have to go through the same regulations as the Taxi and yet they are directly competing with what the services that taxis offer
Owner / Operator or Just Plain Owner?
When it comes to Taxis sometimes, the owner is also the driver, but in most cases, the owner has a fleet of taxis and so he has to hire drivers for the rest of his fleet. But for the Uber or Lyft, the owner is also the driver. It is rare, and somewhat unethical, for the Uber “partner” to hire out multiple cars under his name.
In some countries, someone can own a fleet of Uber cars. Truth be told this can be somewhat unethical since this is not how Uber was supposed to operate.
The Insurance Level Varies
All drivers must have car insurance. It is a given and part of the privilege of owning a car. But this liability insurance only covers the driver and is designed to ensure against the risk of a private car owner driving for personal use.
The insurance for a taxi is more expensive and is generally higher in value because it accepts the fact that driving a taxi carries more risk. Therefore, there should be a correspondingly higher insurance premium.
It is probably the more difficult grey area here. If there is an accident, the standard drivers' insurance is not enough. So, anyone who wants to drive an Uber or Lyft is best served by having additional insurance just in case. At Rick Case Insurance Agency, we aim to make our client's life easier with policies that are tailored to their needs. You can get more information about our products and services by calling our agency at (405) 722-5556. Get your free quote today by CLICKING HERE.