Drive for UberX? Check your insurance, warns N.J. regulator

Ride-sharing service UberX wants to be your designated driver at the Jersey Shore this summer. The Christie administration is warning drivers to make sure their auto insurance is OK to drive, too.

Ride-sharing service UberX wants to be your designated driver at the Jersey Shore this summer. Meanwhile, the Christie administration is warning potential drivers to make sure their auto insurance is OK to drive, too.

Unlike Uber’s traditional service, which uses licensed limo drivers, UberX taps regular drivers who use their own cars to make an extra buck.

Uber screens drivers for its cheaper, ride-sharing service, but the New Jersey Department of Banking and Insurance is warning those drivers to screen their own insurance policies, which may not cover moonlighting as a taxi.

“It’s come to our attention that there could be some coverage issues with these type of arrangements,” said spokesman Marshall McKnight. “Because this introduces a new aspect of use for a private passenger auto, which might not be contemplated by the policy.”

Drivers should double-check beforehand to make sure they have all the necessary coverage, McKnight said.

For its part, Uber said, it has a best-in-class insurance program. 

“In New Jersey, our corporate insurance policy includes up to $1.5 million of coverage for each trip, which exceeds what is required of taxis in New Jersey by 50x,” Uber spokeswoman Natalia Montalvo said in a written statement.

Lyft, another ride-sharing service operating in North Jersey, did not reply to a request for comment.