# Insurance Gray Area



## Hyperloop (Jul 22, 2017)

I am by no means an expert, and am brand new to Uber, but this is what I've distilled from this whole insurance gray area and gap coverage. Can someone chime in and let me know if I'm on the right track of thinking?

Read your policy. If it excludes rideshare specifically or doesn't even mention rideshare, call your insurer and have them update your policy to reflect rideshare coverage. Then, re-read your policy and understand the language contained within. If not, it's worth paying a small fee to have a legal mind help you understand the policy.

Uber makes it pretty clear what they cover and what they don't and when. But within their statement on insurance, it specifically calls out that they will cover you and your vehicle in period 2 & 3 only if you maintain a personal policy that contains comprehensive/collision. That's where the legal gray area is in my mind, aside of course from the Gap in period 1.

So, if you have full coverage on a personal policy and are at fault during period 2 or 3, but your personal policy excludes or does not define rideshare coverage they will most likely drop you since rideshare is not within the scope of your policy. Then, since you're dropped from your personal policy, Uber/JR has no validation or legal obligation to cover you or your vehicle for period 2 or 3 at the time of the incident?

^^^ this paragraph leads to what I think could be a messy and most likely lengthy lawsuit between driver, Uber, JR, and driver's insurer since Uber doesn't clearly define what constitutes neglect of maintence of an appropriate policy and when that neglect is enforcible.

I may have blown this way out of proportion but I believe it's a valid concern.


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## Maven (Feb 9, 2017)

Hyperloop said:


> I am by no means an expert, and am brand new to Uber, but this is what I've distilled from this whole insurance gray area and gap coverage. Can someone chime in and let me know if I'm on the right track of thinking?
> 
> Read your policy. If it excludes rideshare specifically or doesn't even mention rideshare, call your insurer and have them update your policy to reflect rideshare coverage. Then, re-read your policy and understand the language contained within. If not, it's worth paying a small fee to have a legal mind help you understand the policy.
> 
> ...


You have *not *blown this way out of proportion. It's both a valid and serious concern. *See the pinned post in this forum. 

DO NOT* call your insurer and have them update your policy to reflect rideshare coverage. Most insurers will drop your personal coverage immediately if you admit to doing ridesharing. Even asking a question may flag you account for "special treatment". Check using an independent agent without identifying yourself.

The "phase 1 gap" is no "gray area". It is very black and white, usually backed-up by state laws (mostly written by Uber). Many drivers are unaware they accept a huge risk driving for Uber and Lyft every time they go online. Phases 2+3, are better, but carry a higher deductible ($1000 Uber $2500 Lyft) than most individual policies. Plus their insurers have a poor-to-terrible reputation.

If you intend to continue ridesharing then I strongly suggest that you _immediately _locate the insurers in your state that cover rideshare on a personal policy (usually through their commercial departments), compare and choose the one you prefer (there are differences),and transfer your auto insurance to that company.


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## steveK2016 (Jul 31, 2016)

Maven said:


> You have *not *blown this way out of proportion. It's both a valid and serious concern. *See the pinned post in this forum.
> 
> DO NOT* call your insurer and have them update your policy to reflect rideshare coverage. Most insurers will drop your personal coverage immediately if you admit to doing ridesharing. Even asking a question may flag you account for "special treatment". Check using an independent agent without identifying yourself.
> 
> ...


Bad advise as always.

Do not avoid telling your insurance company you are ubering. The last thing you want is to be paying $100+ a month for an insurance premium that will be null and void when you need it. Rip that band aid off now and get proper insurance. If you cannot due to restrictions in your state, then you need to evaluate the risk of Uber. Is it worth it? Depends on how desperate you are...


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## Maven (Feb 9, 2017)

steveK2016 said:


> Bad advise as always. Do not avoid telling your insurance company you are ubering. The last thing you want is to be paying $100+ a month for an insurance premium that will be null and void when you need it. Rip that band aid off now and get proper insurance. If you cannot due to restrictions in your state, then you need to evaluate the risk of Uber. Is it worth it? Depends on how desperate you are...


My, my, aren't we the disagreeable one. I'm going to surprise you by agreeing with everything that you said, but as the goal, not the process. I agree that everyone should get "proper insurance" ASAP. However, you do not want to be dropped by your current insurer until you are ready to make the change. In some states, like NY, good options do not currently exist. The market is too new. Insurers have not yet announced the kind of rideshare riders or endorsements curently available in other states. A part-time NYS uber driver has no good options.


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## mountainchick04 (Mar 21, 2017)

I just went through this. Progressive still hasn't dropped me and it's been 7 weeks since the accident. I don't think your insurance would immediately drop you, and even if they do you still had coverage at the time of of the accident.


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## Maven (Feb 9, 2017)

mountainchick04 said:


> I just went through this. Progressive still hasn't dropped me and it's been 7 weeks since the accident. I don't think your insurance would immediately drop you, and even if they do you still had coverage at the time of of the accident.


Even insurers that do not allow rideshare will often process a claim using their normal procedures except when

There is something suspicious.
The claim is for a large amount (to the insurer) say over $10,000 - $20,000
There is still a risk. Many insurers have a provision that they can try to recover the settlement amount if they discover fraud in the future.


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## steveK2016 (Jul 31, 2016)

mountainchick04 said:


> I just went through this. Progressive still hasn't dropped me and it's been 7 weeks since the accident. I don't think your insurance would immediately drop you, and even if they do you still had coverage at the time of of the accident.


How much was the claim amount?


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