Uber Advises Drivers To Buy Insurance That Leaves Them Uncovered

[FrodosPet]

http://www.buzzfeed.com/kenbensinger/ubers-yawning-insurance-gap

Uber is steering drivers to purchase auto insurance that leaves them uncovered when they’re trolling for fares and that often forces them to flout the law by lying when they register their automobiles, according to documents, interviews, and an Uber presentation attended by a BuzzFeed News reporter.

~ snip ~

Uber maintains that isn’t a problem, because drivers’ personal insurance will cover the trolling period. The company’s website claims that “during the time that a ridesharing partner is available but between trips, most personal auto insurance will provide coverage.” In response to queries last week, Uber maintained that “when the app is on but no ride has been accepted, many personal policies provide coverage.”

Not so, say Allstate, State Farm, Progressive, and Geico. Those companies insist that their policies do not cover ridesharing activities of any type, including when the driver is logged in to the app but has not been matched with a fare. Indeed, they have denied such claims, and some have begun canceling policies of people found to be driving for rideshare services.

If an insurance company determined that a driver got in an accident while trolling for a fare, it could decline to pay, leaving the Uber driver entirely responsible for any medical treatment that he might need. The driver would also have to pay for any damage to his or her own car.

~ snip ~

Disclaimer: I am a professional in the licensed and insured personal transportation business. In other words, a legal cab driver.