Rideshare Drivers: Breaking Laws, Encouraged Or Not?

The rise of ridesharing companies has sparked a mobility revolution, allowing almost anyone to offer a taxi-like service. While ridesharing has improved convenience and user-friendliness, it has also led to legal complexities and challenges. One contentious issue is whether rideshare drivers are encouraged or incentivized to break the law. This question arises from the nature of the gig economy, the regulatory landscape surrounding ridesharing, and the potential conflicts between rideshare companies, drivers, and traditional taxi services. Understanding this topic requires examining the legal context, safety considerations, labour rights, and the impact on the transportation industry.

Insurance complications

Ridesharing has blurred the lines between personal and commercial auto insurance. As a result, insurance companies have had to create new rules and regulations to accommodate this growing trend. This has led to the creation of rideshare insurance, which is available as an add-on or endorsement to a driver's personal auto insurance policy.

The Problem

Rideshare drivers often find themselves in a grey area when it comes to insurance coverage. When a driver is logged into the app and waiting for a ride request, there is often a gap in coverage. During this period, the driver's personal auto insurance policy typically does not apply as they are using their vehicle for commercial purposes. At the same time, the rideshare company's insurance policy may also not cover this period.

The Solution

Rideshare insurance is designed to fill this coverage gap. It provides protection for drivers while they are logged into the app and waiting for a ride request. This type of insurance is not legally required in most states, but it can offer financial protection in the event of an accident during this period.

Cost of Rideshare Insurance

Adding rideshare insurance to a driver's personal auto policy will typically increase their rates. The cost of rideshare insurance varies by company and state, but on average, drivers can expect to pay an additional $94 for this coverage.

Company-Provided Insurance

Rideshare companies like Uber and Lyft provide insurance coverage for their drivers, but it is important to note that this coverage is limited and varies depending on the driver's status. When a driver is on their way to pick up a passenger or has a passenger in the vehicle, the rideshare company's insurance policy takes over and provides a higher level of coverage. However, when a driver is waiting for a ride request, the company's insurance may only provide limited liability coverage, leaving the driver potentially vulnerable.

Additional Considerations

It is crucial for rideshare drivers to understand the insurance coverage provided by both their personal policy and the rideshare company. Gaps in coverage can leave drivers financially vulnerable in the event of an accident. Additionally, drivers should be aware that their personal insurance company may cancel their policy if they find out the driver has been using their vehicle for ridesharing without disclosing it.

In summary, rideshare insurance is an important consideration for drivers as it helps fill the gaps in coverage that can exist between personal and commercial auto insurance policies. By understanding the limitations of their insurance policies, drivers can make informed decisions about their coverage and ensure they are adequately protected.

Safety regulations and background checks

Safety is a key concern for ridesharing services, and companies like Uber and Lyft have introduced measures to improve it. These include in-app safety features, such as allowing passengers to view the driver's name, photo, and license plate number to verify their ride. In addition, some drivers use security cameras during trips, and Uber has introduced an in-app emergency button.

Ridesharing companies are also responsible for conducting background checks on their drivers. While Uber and Lyft do perform these checks, there have been criticisms that they are insufficient to ensure passenger safety. For example, in 2016, Uber and Lyft were criticised for using low-cost background checking services, which failed to access complete criminal histories. This led to 25 drivers being hired who had prior arrest records for offenses that should have automatically disqualified them.

In response to these concerns, some jurisdictions have implemented stricter regulations for background checks. For example, California, Massachusetts, British Columbia, Washington, and Wisconsin require fingerprint and criminal background checks for ridesharing drivers. Toronto requires drivers to complete a city-approved driver training program and have a minimum of three years of driving experience.

Uber and Lyft have different safety standards and background check processes. Uber requires drivers to be over 21, or, if they are younger, to have at least three years of driving experience in the US. They also require drivers to pass an initial vehicle and criminal background screening, as well as ongoing background and driving history checks. In addition, Uber conducts random identity checks and annual driving and background checks. Lyft also requires drivers to be at least 21 and pass a criminal background check, but they do not mention a minimum number of years of driving experience. They also require drivers to pass a DMV screening and have up-to-date documents, including a valid driver's license, license plates, and insurance.

While ridesharing companies have taken steps to improve safety, there is still room for improvement. Critics argue that more needs to be done to protect passengers, especially in light of the increasing number of sexual assault and misconduct reports.

Tipping and payment issues

Ridesharing companies such as Uber and Lyft have made the rules around tipping etiquette a bit more confusing. While each company states slightly different views on tipping, overall, tipping your rideshare driver is not the norm, though always appreciated. If you do want to tip your rideshare driver, it is recommended to follow the same rule that applies to traditional taxis: 10-20% of the final fare.

Uber introduced in-app tipping in July 2017 across all operating cities in the US. Tipping is not required for Uber passengers – it is an optional feature to thank drivers who exceeded expectations. The tip is associated with the trip, not the passenger's name, to respect the rider's privacy.

Lyft, on the other hand, includes an in-app tipping feature that allows riders to tip any amount. Tips are anonymous and go directly to the driver. Fasten and Juno also have in-app tipping features, while Curb has an automatic 20% tip included in the fare.

To protect themselves from payment issues, drivers should maintain detailed records of every ride. This includes fare amounts, trip details, and any communication with passengers. These records can be crucial evidence if drivers encounter payment discrepancies and need to follow formal dispute resolution channels.

Traffic violations and responsibilities

Rideshare drivers are at an increased risk of traffic violations due to the amount of time they spend on the road. The nature of their work means they are vulnerable to a range of traffic violations, from moving violations to parking violations and dynamic traffic rules.

Moving Violations

Moving violations are those that occur when a vehicle is in motion, such as speeding, running a stop sign or red light, following too closely, and not wearing a seatbelt. More serious violations include excessive speeding, reckless driving, driving under the influence, and driving with a suspended license. These violations can result in hefty fines and even jail time. Rideshare drivers must be particularly cautious to avoid these violations, as they can have a significant impact on their ability to drive for a rideshare company and maintain a clean driving record. Many rideshare companies will conduct annual checks of their drivers' records, and drivers with multiple violations may be dismissed or struggle to find similar employment.

Parking Violations

Parking violations during a ride can be the responsibility of either the driver or the passenger, depending on the circumstances. Clear communication is essential to avoid confusion or disputes over parking tickets. Drivers should inform passengers about any potential parking restrictions or fees at pick-up and drop-off locations.

Dynamic Traffic Rules

Geo-fenced areas with variable speed limits or congestion charges can create uncertainty about who is responsible for violations. Navigation apps can be helpful, but drivers must use their judgment to avoid following suggestions that may lead to violations. Staying updated on local traffic laws and regulations specific to ridesharing is crucial for drivers to minimize traffic violations and provide a smooth ride for their passengers.

Safety Considerations

Rideshare drivers face various safety challenges, including aggressive passengers, accidents, vehicle damage, and IRS tax issues. To protect themselves, drivers can install dashcams, request passengers to sit in the back, avoid giving out personal information, and verify passengers' identities before they enter the vehicle. Additionally, having a safety kit, an emergency plan, and legal protection are essential components of a driver's safety strategy.

Overall, rideshare drivers must be vigilant about adhering to traffic laws and regulations while also prioritizing their safety and maintaining a clean driving record to continue their employment.

Encouraging distracted driving

Rideshare drivers, as part of the gig economy, are four times more likely than other drivers to use smartphone apps while driving. This is due to the nature of their work, which requires them to be constantly connected and responsive to customers. However, this constant connection comes at a cost, as it can lead to dangerous driving behaviours.

To address this issue, ridesharing companies should implement and enforce strict policies that discourage distracted driving. This includes mandating safe practices for necessary operations and restricting device usage to only essential tasks. For example, ridesharing companies can provide drivers with a hands-free system that allows them to accept or reject rides and communicate essential information to the rider without taking their hands off the wheel.

Additionally, public education and awareness campaigns about the dangers of distracted driving can play a crucial role. These campaigns can target both drivers and passengers, encouraging them to speak up if they notice distracted driving and promoting the use of hands-free systems and voice commands.

Finally, strengthening laws and enforcement against distracted driving is essential. This includes imposing strict fines and penalties for violations, such as the "Put the Phone Away or Pay" campaign, which pairs advertising with law enforcement crackdowns to deter distracted driving.

Frequently asked questions