State regulators are shining a spotlight on the potential insurance gaps associated with ride-sharing operations such as Uber and Lyft-even as some insurers are rolling out new policies intended to fill the gaps.

Recently, the National Association of Insurance Commissioners, the state regulators’ association, approved a white paper for state legislators and regulators on insurance issues involved in what it calls “transportation network companies.” These businesses involve individuals using an app to find a driver they will pay to transport them.

Coverage issues arise because ride-share drivers “use personal cars for that commercial activity but do not have commercial auto insurance,” the NAIC white paper says. Participating drivers get some commercial coverage from both Uber and Lyft. But the NAIC says there can still be coverage gaps that could affect the driver, the vehicle and anyone injured in an accident.

One thorny question concerns responsibility and insurance coverage if an accident occurs when the driver is logged into the ride-sharing app but hasn’t yet been matched with a passenger, the report says.

Personal auto policies generally don’t provide coverage when a car is used to provide transportation services for pay. Some insurers believe that using a covered car in that way is grounds for cancellation at any time, the NAIC report says. But commercial coverage could be prohibitively expensive.

Uber recently said it and Lyft reached an agreement with a number of major insurers and insurance industry associations on a model bill for state legislative action that is intended to address coverage gaps.

You want to be protected if you ride with one of these carriers for injury. Be sure and ask if you become a passenger with UBER or LYFT so you won’t have personal expenses incurred as a result of riding with them.

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