# Why does Uber mislead drivers about insurance?



## RussellP (Dec 9, 2016)

So basically every insurance company I've spoken to tells me the same thing... If driving for Uber/Lyft, or any other transportation network provider, even if you only take 1 passenger per year, you must have a commercial insurance policy. You can argue with them until you are blue in the face, but they will not issue a personal insurance policy if you drive with Uber. In the case of Geico, as soon as I mentioned driving for Uber they told me that they were going to cancel my personal policy unless I sent them a letter of deactivation from Uber proving my partner account was terminated.

Uber themselves seem to tell you that your personal insurance covers you while not logged in, and their contingent insurance (which meets state minimums) covers you while logged in and not carrying passengers.

I see a problem with that... if I was to have an accident while logged in, the Uber insurance is liability only... so no comprehensive/collision meaning my vehicle could be a total loss and I would be screwed basically...

It seems this is not a thing specific to my state of Maine, so why isn't Uber more clear about this... It should be very clearly explained when drivers are signing up..

"If you become an Uber driver, your insurance company will cancel your personal insurance policy and require you to get a commercial insurance policy, even if you only drive 1 night a year."

I bought full commercial coverage with Geico.

Reasons why I think Uber should be honest about the insurance stuff? I'm greedy, I want less other drivers to compete with... meaning more frequent pings for me, more frequent surges, and higher surge rates. Not to mention it would also be the right thing to do.... being honest and all...


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## CommiePuddin (Nov 17, 2016)

The rules are not the same in every state/municipality/nation.


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## Blackout 702 (Oct 18, 2016)

"Why does Uber...?" You could have stopped right there.


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## steveK2016 (Jul 31, 2016)

It's not Uber's job nor responsibility to advise an independent contractor on what exact regulations he or she needs to do in order to accept a contract with their business. Especially since that regulation can differ from state to state, county to county and even city to city. With being an independent contractor comes responsibilities: confirming your insurance coverage and filing your own taxes are two major ones.

There are a few insurance companies that do allow rideshare with their personal insurance. I was told USAA allows it, probably because they don't offer a commercial insurance and it's better than losing a customer completely. 

Uber will cover their asses, it's your job to cover yours...


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## tohunt4me (Nov 23, 2015)

RussellP said:


> So basically every insurance company I've spoken to tells me the same thing... If driving for Uber/Lyft, or any other transportation network provider, even if you only take 1 passenger per year, you must have a commercial insurance policy. You can argue with them until you are blue in the face, but they will not issue a personal insurance policy if you drive with Uber. In the case of Geico, as soon as I mentioned driving for Uber they told me that they were going to cancel my personal policy unless I sent them a letter of deactivation from Uber proving my partner account was terminated.
> 
> Uber themselves seem to tell you that your personal insurance covers you while not logged in, and their contingent insurance (which meets state minimums) covers you while logged in and not carrying passengers.
> 
> ...


Here at Uber,truth just gets in the way. We ignore it,like laws


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## RussellP (Dec 9, 2016)

Yeah... maybe this belongs in complaints... I guess I was just venting about how many drivers are underinsured. Uber has the ability to help the situation by making this information more apparent during the signup, even if it was just a suggestion to "check with your insurance company first, tell them you want to start driving for uber". Then drivers can consider the costs in reality


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## SEAL Team 5 (Dec 19, 2015)

RussellP said:


> So basically every insurance company I've spoken to tells me the same thing... If driving for Uber/Lyft, or any other transportation network provider, even if you only take 1 passenger per year, you must have a commercial insurance policy. You can argue with them until you are blue in the face, but they will not issue a personal insurance policy if you drive with Uber. In the case of Geico, as soon as I mentioned driving for Uber they told me that they were going to cancel my personal policy unless I sent them a letter of deactivation from Uber proving my partner account was terminated.
> 
> Uber themselves seem to tell you that your personal insurance covers you while not logged in, and their contingent insurance (which meets state minimums) covers you while logged in and not carrying passengers.
> 
> ...


You know that big packet your insurance company sent you when you either first signed up or renewed with them? That's called a policy, it contains very specific underwriting rules. Underwriting rules are the guideline that the company follows to insure you, accept or deny any claim and represent you in any legal matter. I don't know whom you are insured with, but I can guarantee that you have a written clause in your policy that states "not for agricultural or commercial use". Remember that the insurance companies have been in this business for over a hundred years, Uber's only 7 years old and is clueless when it comes to state required insurance guidelines. Don't trust anything Uber says about insurance.


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## Allstate_Rideshare_Texas (Dec 11, 2016)

Many good points above by RussellP, SteveK2016 and SEAL Team 5 and others!

I see both sides: the TNC's and Drivers. On many threads many say it's the driver's job, as independent contractors (which I have been for 20 years) , to know what they, as drivers, are doing and how to protect themselves. Yes, that's true. But I also think TNC's could and *should* do more to help the drivers get some guidance with the arcane, but very important, subject of insurance. If the TNC's did, there would be, IMO, a MUCH higher level of trust and satisfaction by the drivers. And its NOT like the BIG insurance co's are running away from the TNC biz! Just the opposite! There are more and more insurance companies are seeing the opportunity each year and getting in the game with affordable insurance. The TNC's could hire ONE guy to research, track and publish what insurance co's are doing. That would help the drivers, foster better TNC/driver relationships, and bolster their business (of course, the TNC's could add a page of legal disclaimers). I don't know why they don't do that. But.... I am not a TNC....

I wish all of you great Success in your driving! : )


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## SEAL Team 5 (Dec 19, 2015)

Allstate_Rideshare_Texas said:


> But I also think TNC's could and *should* do more to help the drivers
> 
> I wish all of you great Success in your driving! : )


Thank you for the kind words and I couldn't agree with you more. TNC's should do more to help new drivers understand the rules and laws of this industry. With them not helping in any way only proves one of three things.

1) either they don't care one bit about their drivers
2) or they are so clueless about the rules and laws themselves
3) or they think they are so above the law and have the resources to pay any fine if convicted of wrongdoings.

On second thought, it most likely is all three.

In conclusion, the fact of the matter will always come down to the owner/operator of the vehicle being the responsible party. Again getting back to a phrase I read in NEWS about a month ago. "Uber has a $40 billion fleet without owning a single vehicle."


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## Grahamcracker (Nov 2, 2016)

steveK2016 said:


> It's not Uber's job nor responsibility to advise an independent contractor on what exact regulations he or she needs to do in order to accept a contract with their business. Especially since that regulation can differ from state to state, county to county and even city to city. With being an independent contractor comes responsibilities: confirming your insurance coverage and filing your own taxes are two major ones.
> 
> There are a few insurance companies that do allow rideshare with their personal insurance. I was told USAA allows it, probably because they don't offer a commercial insurance and it's better than losing a customer completely.
> 
> Uber will cover their asses, it's your job to cover yours...


I have USAA and they don't offer insurance for Ridesharing yet. Last I talked to them about it was a month ago.


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## Grahamcracker (Nov 2, 2016)

SEAL Team 5 said:


> You know that big packet your insurance company sent you when you either first signed up or renewed with them? That's called a policy, it contains very specific underwriting rules. Underwriting rules are the guideline that the company follows to insure you, accept or deny any claim and represent you in any legal matter. I don't know whom you are insured with, but I can guarantee that you have a written clause in your policy that states "not for agricultural or commercial use". Remember that the insurance companies have been in this business for over a hundred years, Uber's only 7 years old and is clueless when it comes to state required insurance guidelines. Don't trust anything Uber says about insurance.


I'm convinced they know. They don't want to scare potential drivers away. I asked a guy at the local Uber office what is the deductible? He replied,"1 million dollars". I was like WTF? He saw I was confused and told me to contact them online about it. I should have listened to my gut then and walked out.


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## I_Like_Spam (May 10, 2015)

*




Why does Uber mislead drivers about insurance?

Click to expand...

*Uber is interested in getting as many partners signed on as possible, talking a lot about the problems that they might have in regards to insurance wouldn't help them in this regards. Thousands of partners might have never signed up.

They won't tell you that you might have a problem with your auto note, if you are making payments on your car either. If you look at the note you signed, you are buying your car for personal reasons. The wear and tear and the additional miles, reduces the value of the collateral to GMAC or whomever, making the loan riskier to them, and allowing the lender to call in the loan immediately.


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## Grahamcracker (Nov 2, 2016)

Believe in your dreams... they are ready and waiting to come true. 

Last night I had a dream the Boogie man was under my bed


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## SEAL Team 5 (Dec 19, 2015)

Grahamcracker said:


> I'm convinced they know. They don't want to scare potential drivers away. I asked a guy at the local Uber office what is the deductible? He replied,"1 million dollars". I was like WTF? He saw I was confused and told me to contact them online about it. I should have listened to my gut then and walked out.


Any insurance company would love a million dollar deductible on a million dollar policy. The ignorance of Uber management is strong.


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## BurgerTiime (Jun 22, 2015)

Why do you think every driver takes off the trade dress? Because if there's an accident they don't want the cop to put down you are an Uber driver in the police report. That gets back to your insurance company and you can kiss your policy/ coverage, goodbye, forever! You will also be flagged and have a super hard time getting new insurance.
Add your claim will be denied too.

I bet the new thing will be if your car was Ubering and that will effect your car fax and you'll have a heck of a time trade-in or resale. Who would want to buy a used taxi not knowing it was used as such?


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## Blackout 702 (Oct 18, 2016)

BurgerTiime said:


> Why do you think every driver takes off the trade dress?


Because I'd really rather not have a cabbie express himself fecally on my nice vehicle.


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## SEAL Team 5 (Dec 19, 2015)

I_Like_Spam said:


> The wear and tear and the additional miles, reduces the value of the collateral to GMAC or whomever, making the loan riskier to them, and allowing the lender to call in the loan immediately.


Even worse a financial institution that is carrying your loan may place full commercial coverage on your vehicle retroactive to the very first day of the loan. And these financial institutions DO NOT shop for the best price. All of a sudden an Uber driver gets a new payment coupon book in the mail increasing his payment by $400/month and a letter stating that an additional insurance lien has been placed on their vehicle. The driver will be horrified until he is told to read their contract with the financial institution. Just more legal issues that I'm sure 95% of Uber drivers have no clue about. Uber is not picking up hitch hikers for gas money, it's commercial transportation for compensation (fare for hire).


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## SEAL Team 5 (Dec 19, 2015)

Blackout 702 said:


> Because I'd really rather not have a cabbie express himself fecally on my nice vehicle.


You don't have to worry about that. Your pax do a more than adequate job of that.


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## Blackout 702 (Oct 18, 2016)

SEAL Team 5 said:


> You don't have to worry about that. Your pax do a more than adequate job of that.


Actually no, they don't. It's funny how when people run out of actual points to make they just start making things up that they either know for a fact aren't true or they have no way of knowing one way or the other.


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## SEAL Team 5 (Dec 19, 2015)

Blackout 702 said:


> Actually no, they don't. It's funny how when people run out of actual points to make they just start making things up that they either know for a fact aren't true or they have no way of knowing one way or the other.


I was just going by everything I've seen in this forum. Puke, urine, fecal matter, food, candy, broken doors, broken windows and too many other items to mention that I've read about on this forum that is happening to cars. I will never run out of actual points to make in this forum. It's as sure as the sun rises that a new driver will start a thread with "I can't believe this happened".


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## Blackout 702 (Oct 18, 2016)

SEAL Team 5 said:


> I was just going by everything I've seen in this forum. Puke, urine, fecal matter, food, candy, broken doors, broken windows and too many other items to mention that I've read about on this forum that is happening to cars. I will never run out of actual points to make in this forum. It's as sure as the sun rises that a new driver will start a thread with "I can't believe this happened".


Ok, so you misunderstood the difference between the activities of random drunks and actual cabbies. Can't blame you there.


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## Toonces-the-cat (Jun 7, 2016)

RussellP said:


> So basically every insurance company I've spoken to tells me the same thing... If driving for Uber/Lyft, or any other transportation network provider, even if you only take 1 passenger per year, you must have a commercial insurance policy. You can argue with them until you are blue in the face, but they will not issue a personal insurance policy if you drive with Uber. In the case of Geico, as soon as I mentioned driving for Uber they told me that they were going to cancel my personal policy unless I sent them a letter of deactivation from Uber proving my partner account was terminated.
> 
> Uber themselves seem to tell you that your personal insurance covers you while not logged in, and their contingent insurance (which meets state minimums) covers you while logged in and not carrying passengers.
> 
> ...


The insurance only protects the pax. If you are injured, you are on your own. You need to get ride sharing insurance. There are a few companies that offer it. I use Metromile. The coverage sucks. My insurance went from $50.00 per month to 130.00 per month.


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## Toonces-the-cat (Jun 7, 2016)

steveK2016 said:


> It's not Uber's job nor responsibility to advise an independent contractor on what exact regulations he or she needs to do in order to accept a contract with their business. Especially since that regulation can differ from state to state, county to county and even city to city. With being an independent contractor comes responsibilities: confirming your insurance coverage and filing your own taxes are two major ones.
> 
> There are a few insurance companies that do allow rideshare with their personal insurance. I was told USAA allows it, probably because they don't offer a commercial insurance and it's better than losing a customer completely.
> 
> Uber will cover their asses, it's your job to cover yours...


It is totally Uber's responsibility to disclose this. They don't because they want people to sign up to drive. They make it sound like the money is fantastic. However, when you factor in the cost of your insurance, it becomes a little less appealing.


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## I_Like_Spam (May 10, 2015)

SEAL Team 5 said:


> Any insurance company would love a million dollar deductible on a million dollar policy. The ignorance of Uber management is strong.


Such a policy would be what is known as an "Umbrella policy", and that kind of coverage is certainly available mostly to people engaged in certain commercial enterprises. When I was driving YC, for the state required minimums, Yellow Cab was "self insured" for the 30 or 50k, whatever that was, but held another policy with that as the deductible.


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## I_Like_Spam (May 10, 2015)

Toonces-the-cat said:


> It is totally Uber's responsibility to disclose this.


It might be their "moral" responsibility to disclose, but they are a business and their legal obligations in this and other matters is covered in the agreements signed by the partner when they sign on. Examine carefully, consult a lawyer or your insurance agent, before you attach your John Hancock if you are uncertain.


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## I_Like_Spam (May 10, 2015)

SEAL Team 5 said:


> Even worse a financial institution that is carrying your loan may place full commercial coverage on your vehicle retroactive to the very first day of the loan. And these financial institutions DO NOT shop for the best price.


Here,I think you are wrong. Financial institutions do shop for the best price they can, as this coverage is designed to protect their collateral.

The insurance policy they have on the collateralized vehicles has to include "retroactive" coverage for vehicles that neither they nor the insurance company know are being used for commercial purposes, and often times an accident and a claim is the first that lender and insurance company is the first time the insurance company even knows that there is a risk here.

This kind of insurance has to be very expensive, with such an unknown risk- both your GMAC's and State Farms out there know that and the best price for coverage is necessarily high.

An Über or other ride share partner would be a lot better off telling their insurance agent what they are up to in advance, unknown risks are a lot more expensive to cover than known ones.


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## steveK2016 (Jul 31, 2016)

Toonces-the-cat said:


> It is totally Uber's responsibility to disclose this. They don't because they want people to sign up to drive. They make it sound like the money is fantastic. However, when you factor in the cost of your insurance, it becomes a little less appealing.


You are an independent contractor. It is your responsibility to ensure that with your coverage, that you are in compliance with your state and local laws.

Uber is just a technology company. They offer passengers an app to link them with a driver with an app. The actual transportation company is YOU. Uber offers insurance to cover their liability to the passenger for sending them to any particular driver. You, as the driver and independent contractor, are responsible for their safety and for your own liability.

As I said, some insurance company's will cover rideshare without rideshare insurance. The only one I know that is somewhat confirmed in USAA. Any other could do it but they don't want to. It's not Uber's job to know whether or not your insurance coverage allows for rideshare or not. That is in your insurance policy and your responsibility to read, understand and ensure that you are covered appropriately.

None of us provides Uber with our detailed policy. All we give Uber is the fact that we have insurance. Uber does not, will not and should not have access to the details of our policy underwriting to confirm whether our personal insurance covers Ubering. That's your job to do.


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## SEAL Team 5 (Dec 19, 2015)

I_Like_Spam said:


> Such a policy would be what is known as an "Umbrella policy", and that kind of coverage is certainly available mostly to people engaged in certain commercial enterprises. When I was driving YC, for the state required minimums, Yellow Cab was "self insured" for the 30 or 50k, whatever that was, but held another policy with that as the deductible.


Read my post again. That was for a joke. There is no such vehicle policy with a $1 million deductible for comp/coll.


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## ChortlingCrison (Mar 30, 2016)

steveK2016 said:


> You are an independent contractor. It is your responsibility to ensure that with your coverage, that you are in compliance with your state and local laws.
> 
> Uber is just a technology company. They offer passengers an app to link them with a driver with an app. The actual transportation company is YOU. Uber offers insurance to cover their liability to the passenger for sending them to any particular driver. You, as the driver and independent contractor, are responsible for their safety and for your own liability.
> 
> ...


Uber is more then just a technology company. You left out transportation. Nuf said.


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## steveK2016 (Jul 31, 2016)

ChortlingCrison said:


> Uber is more then just a technology company. You left out transportation. Nuf said.


When has Uber physically driven a paying Passenger?

Even if they have, occasionally, then those pax and vehicle would be covered under that Uber Driver's Corporate Policy because they work directly for Uber.

You are an independent contractor, you are the transportation service provider. Uber just gave you a customer via their marketed app.

Now when Uber launched autonomous vehicles with their own fleet, they'll become a transportation service provider as well, but right now, in all technicality, they are just a technology company.


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## ChortlingCrison (Mar 30, 2016)

steveK2016 said:


> When has Uber physically driven a paying Passenger?
> 
> Even if they have, occasionally, then those pax and vehicle would be covered under that Uber Driver's Corporate Policy because they work directly for Uber.
> 
> ...


If the drivers were allowed to set their own rates, and none of this acceptance rate nonsense, and much much more. Whether you want to believe or not, the drivers that drive for uber, represent uber.


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