Safe Insurance and company set up for Ride share rental cars.

mactube

Expert
50
I'm looking for the best way to set up an entity to be protected against lawsuits when I rent out a car to a rider share driver ( Uber / Lyft ) or food delivery driver ( Door dash, Uber eats etc. ) as a rental car fleet owner in California. I'm pretty sure an LLC would be the best entity. Maybe it's best to set it up in another state ?

I'm looking to be protected as owner as well as my personal assets in case of a law suite.

There are certain policies, that ride share drivers can put in place that will cover any periodes which the ridershare plantform's insurance doesn't cover, but what would be the best policy for the registered owner ( if that's a business) ?
 
You would be a fool to rent a vehicle to someone using it for widespread exposure. Even if you obtained their driving record (MVR) you have no control over where it's being used, when it's being used, how it's being used. Ultimately, as the owner you would be on the hook for liability.
 
You would be a fool to rent a vehicle to someone using it for widespread exposure. Even if you obtained their driving record (MVR) you have no control over where it's being used, when it's being used, how it's being used. Ultimately, as the owner you would be on the hook for liability.
Rental Car Company owners might be Fools but the questions is ...how can I protect myself from law suits.
 
I think that might just be the point, its not completly possible to totally protect yourself as the asset owner. I agree with @fed up.

I would direct these questions to your attorney and fully disclose the use to your commercial insurer and make sure that your policy is set up for this exposure. I would increase your coverage to as much as you can afford.
 
It's a commercial auto policy for rental agencies that rent to ride sharing platform users. There are zero markets for this in NY currently (unless one counts the NYAIP/assigned risk). Most brokers won't get involved. Probably the same situation in California and other states. Claim experience is terrible for carriers and they lose big money.
 
I think that might just be the point, its not completly possible to totally protect yourself as the asset owner. I agree with @fed up.

I would direct these questions to your attorney and fully disclose the use to your commercial insurer and make sure that your policy is set up for this exposure. I would increase your coverage to as much as you can afford.
OK, will also get some legal advice from a Lawyer but of cause I'm always looking to get the best advice here on insurance-forums. I was thinking about seeing up a ( foreign ) trust to own my LLC to at another layer of protection of my personal assets.
 
It's a commercial auto policy for rental agencies that rent to ride sharing platform users. There are zero markets for this in NY currently (unless one counts the NYAIP/assigned risk). Most brokers won't get involved. Probably the same situation in California and other states. Claim experience is terrible for carriers and they lose big money.
I now that the rental car insurance is only a secondary insurance after the primary insurance of the driver but then again if renters have a non-owners policy those policies are also secondary .. I wonder which policy becomes primary over the other in case of an accident , the commercial rental car or the non -owners liability insurance !?
 
Back
Top