Under what circumstances could an insurer deny a claim involving a vehicle being used for ride-sharing?

The correct choice highlights a critical aspect of personal auto policies and how they interact with commercial activities. In most cases, personal auto policies are designed to primarily cover personal transportation uses, not commercial uses, such as providing ride-sharing services like Uber or Lyft. When a vehicle is being used for ride-sharing, it is considered a commercial activity. If the policy explicitly excludes coverage for commercial activities, the insurer has grounds to deny a claim arising from an accident that happened while the vehicle was used for such purposes.

Understanding this distinction is essential for policyholders who participate in ride-sharing. Many insurers offer specific endorsements or policies tailored to ride-sharing to ensure adequate coverage during these activities. However, if a personal auto policy lacks such endorsements and contains exclusions for commercial use, claims made while operating in a ride-sharing capacity are not covered.