Uber offers rides—and lending risks, too
Cars members drive for ride-booking services aren't necessarily protected by insurance.
Chances are good you’ve arranged a ride using popular services such as Uber or Lyft. These transportation network companies (TNCs), or ride-booking services you access via a mobile app, are expanding in cities throughout the country.
But here’s what you might not know: Drivers who provide transportation are using their personal vehicles. And when borrowers have a loan on a vehicle they drive for a TNC, this poses new risks for your credit union.
While various personal auto carriers offer ride-booking endorsements that cover losses sustained during TNC activities, it’s important to note standard personal auto insurance doesn’t.
This means use of vehicles for these purposes could cause issues for lenders—like your credit union—should physical damage occur. Some states require TNC drivers to register themselves and their vehicles, and might require them to notify lienholders.continue reading »