# A Brief Explanation of How Uber Insurance Works...or Not



## Desert Driver (Nov 9, 2014)

I'm not sure anyone has actually explained the mechanism by which the Uber is able to get away with leaving drivers stranded after an accident, so I will address that here and now. This is especially important for new drivers who are going into Uber driving with wide eyes and a false sense of security.

First, Uber makes it very clear that any driver who wishes to drive with Uber must carry personal liability insurance on their car at a minimum.

Second, Uber states that the Rasier policy will become effective if the driver's personal policy denies the claim in the event of a mishap.

But here's where Uber leaves drivers twisting in the wind. Uber knows that the vast majority of personal auto policies specifically exclude livery (commercial) work being performed with that car. And for drivers who read their exclusion page closely, it clearly states this. So, when an accident occurs, the insurance company doesn't just deny the claim, it specifically points out that the driver was flagrantly violating the terms of the policy, resulting in NO insurance coverage at all, not just a denied claim. In the logical conclusion, there is no claim to deny because no insurance was in effect at the time of the mishap. And when this happens, Uber legitimately tells the driver with the wrecked car, "Well, it turns out you had no insurance coverage at all because you were in gross violation of the terms of your policy. Ergo, you lied to us about being insured and we are not going to cover the damages you have claimed."

Keep in mind this is not a scare tactic horror story, folks, but simply an explanation of the insurance component of the Uber business model.

See, Uber uses tricky language here. Uber says, "_We'll cover the wreck if your insurance denies the claim_." That sounds pretty comforting, right? But pay close attention to what is actually being said. The problem is, the driver's insurance company doesn't merely deny the claim. The driver's insurance company takes the position that there was NO insurance coverage in place at the time of the wreck because the driver was in gross violation of the terms of the policy by driving commercially. In the end, of course, the driver's insurance will be cancelled and he/she will have to come out of pocket for repairing the car and quite likely for medical expenses, too.


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## Simon (Jan 4, 2015)

I'm no Uber cheerleader but there have been posts here that contradict this statement.


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## Desert Driver (Nov 9, 2014)

Simon said:


> I'm no Uber cheerleader but there have been posts here that contradict this statement.


Maybe so. I'm just explaining how the model works.


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## Lidman (Nov 13, 2014)

I always thought when it came to uberx insurance, the attitude was "hope for the best". But all kidding aside Metro-mile could be a good solution (especially for part-time drivers).


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## LEAFdriver (Dec 28, 2014)

Lidman said:


> I always thought when it came to uberx insurance, the attitude was "hope for the best". But all kidding aside Metro-mile could be a good solution (especially for part-time drivers).


 Speaking of which.....has anyone who has Metromile been in an accident while ONLINE with Uber? Please share here to share your story if you have.


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## U-turn (May 5, 2015)

If I get into an accident, I would call my personal insurer and say blah blah blah, and oh btw, I need you to deny my claimed, don't ask why, deal? Call uber say you were denied, pay your $1000 deductible and move on.


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## Desert Driver (Nov 9, 2014)

U-turn said:


> If I get into an accident, I would call my personal insurer and say blah blah blah, and oh btw, I need you to deny my claimed, don't ask why, deal? Call uber say you were denied, pay your $1000 deductible and move on.


Sounds good except you'll be uninsured. Your carrier is still going to investigate and they'll learn that you were driving livery.


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## djino (Mar 15, 2015)

U-turn said:


> If I get into an accident, I would call my personal insurer and say blah blah blah, and oh btw, I need you to deny my claimed, don't ask why


LMAO  haha


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## Desert Driver (Nov 9, 2014)

U-turn said:


> If I get into an accident, I would call my personal insurer and say blah blah blah, and oh btw, I need you to deny my claimed, don't ask why, deal? Call uber say you were denied, pay your $1000 deductible and move on.


I would like to nominate you for having the most disgusting, racist avatar on the site. It really says a lot about you as a person.


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## djino (Mar 15, 2015)

Desert Driver said:


> I would like to nominate you for having the most disgusting, racist avatar on the site. It really says a lot about you as a person.


Agreed!!


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