# Why are insurance companies uptight about rideshare?



## Ubergoober6 (Sep 27, 2017)

Why are insurance companies uptight about rideshare as opposed to other jobs that require driving ie pizza delivery or pharmacy delivery?


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## CaptainToo (Dec 5, 2017)

In MA when I switched insurance companies just to obtain rideshare coverage, my rate actually went down a bit. Makes no sense to me, as in my opinion my accident risks in driving 8 hours a day are through the roof compared to pre-Ubering life. Such low rates can't last - I enjoy it now. 
Insurance companies should charge a big premium for rideshare use...


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## Over/Uber (Jan 2, 2017)

Greater risk statistically of claim exposure. For insurance cos., it’s all about the risk rating for your market and analysts who study the risk/reward ratios.


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## BigJohn (Jan 27, 2016)

Why, pure quantity. How many pharmacy deliveries take place per day? Now compare that to how many Uber and Lyft rides take place per day?


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## Older Chauffeur (Oct 16, 2014)

My insurance policy with the Auto Club of So Cal excludes coverage for any type of for hire/commercial/delivery use of a covered vehicle, be it rideshare, pizza, package, newspapers, etc. They simply won't touch it. And failure to disclose a change in use of a covered vehicle, or omitting information from an application for coverage may be considered insurance fraud. They take it seriously!


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## Pax Collector (Feb 18, 2018)

It all boils down to risk. You are several times more likely to file a claim doing rideshare than commuting to work.


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## Older Chauffeur (Oct 16, 2014)

I suspect one reason is because working people may tend to drive a bit faster, either to make more money or because they feel pressure from their bosses to hurry. Those same drivers may take other risks as well.


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## islanddriver (Apr 6, 2018)

It's not uptight. Simple insurance don't want to pay claims. There areore claims as you drive more miles


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## touberornottouber (Aug 12, 2016)

In theory you drive more. I probably drive about double (maybe triple) what I normally would if I didn't do rideshare. Also you are in unfamiliar areas (neighborhoods) which increase the risk. This goes triple if you work at night and around bar closing where more crazy stuff happens.

OTOH I haven't had an accident in 20+ years and I've been working as a taxi or TNC driver on and off again since 2006. I don't feel that I should be treated the same as some 21 year old who just started driving for Uber last week who has 12 trips. I feel that my experience helps me avoid accidents much more than the average person (though sometimes they are unavoidable).

Also the reality here in Florida is the insurance companies are just greedy and there is little competition. Most people end up paying about as much for rideshare insurance as they would full commercial insurance.


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## SEAL Team 5 (Dec 19, 2015)

Ubergoober6 said:


> Why are insurance companies uptight about rideshare as opposed to other jobs that require driving ie pizza delivery or pharmacy delivery?


Because I've never seen a pizza or an enema package file suit in a court of law and demand $5 million in punitive damages as a passenger can.


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## Stevie The magic Unicorn (Apr 3, 2018)

touberornottouber said:


> In theory you drive more. I probably drive about double (maybe triple) what I normally would if I didn't do rideshare. Also you are in unfamiliar areas (neighborhoods) which increase the risk. This goes triple if you work at night and around bar closing where more crazy stuff happens.
> 
> OTOH I haven't had an accident in 20+ years and I've been working as a taxi or TNC driver on and off again since 2006. I don't feel that I should be treated the same as some 21 year old who just started driving for Uber last week who has 12 trips. I feel that my experience helps me avoid accidents much more than the average person (though sometimes they are unavoidable).
> 
> Also the reality here in Florida is the insurance companies are just greedy and there is little competition. Most people end up paying about as much for rideshare insurance as they would full commercial insurance.


Lucky SOB,

I've been the victim of 2 redlight hit and runs (getting plowed into at a red-light) since 2010. And 3 other not at fault accidents. *including a brilliant Florida driver who clipped me turning left from the right lane.



Ubergoober6 said:


> Why are insurance companies uptight about rideshare as opposed to other jobs that require driving ie pizza delivery or pharmacy delivery?


1 If you wreck and the pizza hits the floor your out $10.

2 if three drunken paxholes knock their heads together in a fender bender insurance companies are going to get sued out the wingwang.

3 If your not at fault a minimum insurance driver is going to have their liability maxed out and then the passengers will be gunning for your insurance.

4 Full taxi insurance is like a gazillion a year for 1 car/ 1 driver for a reason.


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## SEAL Team 5 (Dec 19, 2015)

Stevie The magic Unicorn said:


> 4 Full taxi insurance is like a gazillion a year for 1 car/ 1 driver for a reason.


Not quite a gazillion, more like $6K for a $1 million policy from an A+ company like Wilshire.


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## Fozzie (Aug 11, 2018)

Rideshare drivers actually transport people in their vehicles, opening them up to much more risk. If you crash, chances are ~100% that you're going to get sued. 

Delivery drivers only transport goods. How much risk is there in transporting a pizza?


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## mdkhawk (Dec 2, 2018)

CaptainToo said:


> In MA when I switched insurance companies just to obtain rideshare coverage, my rate actually went down a bit. Makes no sense to me, as in my opinion my accident risks in driving 8 hours a day are through the roof compared to pre-Ubering life. Such low rates can't last - I enjoy it now.
> Insurance companies should charge a big premium for rideshare use...


I think they realize recently at least I think if you read Uber's coverage once you accept a rider and pick them up until you drop them off; Uber is covering most liability.

Agree?

Lets not forget Uber coverage.

I think keeps some Rideshare endorsements low.


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## njn (Jan 23, 2016)

They are just as strict on delivery drivers or any commercial activity. Any questions, just ask your agent.


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## kcrangel (Dec 7, 2018)

Risk - your personal insurance premium doesn't reflect your level of risk. They stand to lose a substantial sum of money if you are in an accident, and you're almost guaranteed to have one.


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## Just BS (Nov 29, 2018)

It's totally ridiculous. My USAA went up $60/month. For what? They're not covering me while on my way to pick up a pax or while driving said pax to their destination. Or are they???


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## SEAL Team 5 (Dec 19, 2015)

Just BS said:


> It's totally ridiculous. My USAA went up $60/month. For what? They're not covering me while on my way to pick up a pax or while driving said pax to their destination. Or are they???


No, they're not covering you but they are supplementing the surviving families from all the deaths that Rideshare is causing.

*The meteoric rise of Uber and Lyft may have spurred a deadly outcome, according to new research*
Graham Rapier

Oct. 25, 2018, 11:30 AM
Seth Wenig/AP

A new study from University of Chicago and Rice University researchers shows an uptick in fatal car crashes after Uber and Lyftlaunched in a city. 
Prior to the launch of ride-hailing services, fatal traffic deaths hit their lowest number in half a century in 2010, when Uber first began offering rides in San Francisco.


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## Darrell Green Fan (Feb 9, 2016)

If you drive more there is more risk. This is not difficult.


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## Stevie The magic Unicorn (Apr 3, 2018)

Darrell Green Fan said:


> If you drive more there is more risk. This is not difficult.


I for one know that the number of miles i drove with the app off increased about 100% doing uber VS not doing uber.

that's about all there is to it.


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## Gip (Jan 6, 2019)

More time on the road + passengers = higher risk.


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## Just BS (Nov 29, 2018)

But, but, butt.... You are covered by the rideshare companies while driving all those extra miles. If you have an accident, your personal insurance company will wash their hands of you. So, why then, the increases in policy premiums?


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## observer (Dec 11, 2014)

"Because they can".


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## Just BS (Nov 29, 2018)

observer said:


> "Because they can".


Finally, we have the answer...


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## observer (Dec 11, 2014)

Just BS said:


> Finally, we have the answer...


Lol, it's just like Callinicos said,

https://www.google.com/amp/s/amp.businessinsider.com/uber-cfo-because-we-can-2015-5

Nowadays corporations have all the power.


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## Uber_Yota_916 (May 1, 2017)

Just BS said:


> It's totally ridiculous. My USAA went up $60/month. For what? They're not covering me while on my way to pick up a pax or while driving said pax to their destination. Or are they???


USAA ride-share gap coverage upped my rates by $6...Per month.


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## Just BS (Nov 29, 2018)

observer said:


> Lol, it's just like Callinicos said,
> 
> https://www.google.com/amp/s/amp.businessinsider.com/uber-cfo-because-we-can-2015-5
> 
> Nowadays corporations have all the power.


WOW. Just wow! Everything wrong with corporate greed all rolled into one article. SMH. Values are gone. The mighty dollar rules all. Too bad these #/!$$ can't take it with them while they rot in hell.


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## Stevie The magic Unicorn (Apr 3, 2018)

Just BS said:


> But, but, butt.... You are covered by the rideshare companies while driving all those extra miles. If you have an accident, your personal insurance company will wash their hands of you. So, why then, the increases in policy premiums?


Those miles aren't all covered actually..

Anytime a driver LIES to their insurer after an accident that's one more accident they have to cover that they would't otherwise cover.

Why would a driver do this?

With over half of miles not having a customer...

It's INSANELY easy,
If you look through the insurance tab you'll find many examples of us _recommending_ you don't report the incident to uber.

Remember, even if you aren't at fault it still costs your insurer money to process a claim and sue the other company.

A. It's easier to file a claim with your personal provider, and you will get fixed up much faster
B. It takes DAYS to hear back from uber about an accident, it takes seconds to hear from your normal insurance company
C. For a long time you HAD to file a claim with your insurance company before uber would even let you attempt to file with James River
D. For the $500-750 savings in deductible
E. So you don't get deactivated and can keep driving while your waiting for your car to get fixed
F. Ants (not you necessarily) are stupid, loads of people don't know that you have to tell them in an accident that they have to go through uber. If someone who doesn't know exactly how it works gets into an accident they might give them their personal insurance info.
G. For a long time there was no insurance info for James River that you could show in an accident, so insurance companies where settling accidents before James river would ever get back to the driver on HOW to file a claim.
H. In an accident investigation (with police) the other car will get a police report that SHOWS YOUR PERSONAL INSURANCE, NOT UBERS! Guess who the other insurance company is going to shake down while waiting to hear back from uber?

Really with how bad James Rivers and uber are, your pretty much never better off filing a claim through uber as lying to your insurer has nothing but benefits.


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## Boca Ratman (Jun 6, 2018)

touberornottouber said:


> lso the reality here in Florida is the insurance companies are just greedy and there is little competition. Most people end up paying about as much for rideshare insurance as they would full commercial insurance.


that's because it basically is a full commercial policy, just rebranded as "rideshare"


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## 2Cents (Jul 18, 2016)




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## Boca Ratman (Jun 6, 2018)

2Cents said:


> View attachment 293254


$2500.00


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## 2Cents (Jul 18, 2016)

Boca Ratman said:


> $2500.00


Now it's only $2,500?


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## Just BS (Nov 29, 2018)

Stevie The magic Unicorn said:


> Really with how bad James Rivers and uber are, your pretty much never better off filing a claim through uber as lying to your insurer has nothing but benefits.


Except for the insurance fraud part. I can't justify the risk of jail time, fines and/or increase premiums in the future just to get back on the road and driving/working. The best case scenario of being involved in an accident, is that it sucks. Take it as part of the business we're in. Hopefully we're not at fault and can squeeze the other persons insurance (pray they have it) for all you can, i.e., repairs, deductables, rental car, lost wages and medical expenses.


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## Stevie The magic Unicorn (Apr 3, 2018)

Just BS said:


> Except for the insurance fraud part. I can't justify the risk of jail time, fines and/or increase premiums in the future just to get back on the road and driving/working. The best case scenario of being involved in an accident, is that it sucks. Take it as part of the business we're in. Hopefully we're not at fault and can squeeze the other persons insurance (pray they have it) for all you can, i.e., repairs, deductables, rental car, lost wages and medical expenses.


I was just answering as to WHY someone would lie.

But you are correct.

I haven't taken a customer on Uber since June 20-something 2017


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## touberornottouber (Aug 12, 2016)

Boca Ratman said:


> that's because it basically is a full commercial policy, just rebranded as "rideshare"


It's a scam then. The rideshare company already covers most of the liability when we actually have passengers. We shouldn't be getting charged the same amount as a taxi.


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## Boca Ratman (Jun 6, 2018)

touberornottouber said:


> It's a scam then


ya think?


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## NOXDriver (Aug 12, 2018)

lol Insurance fraud..

Insurance companies cannot force a DA to file charges. And for the small amount of most fender benders a DA will tell them to pound sand.

They might come and sue you, but again, unless you're talking a lot of money its not worth it. A judgement is useless.. they still have to collect and for a large sum you can just bankrupt is away (sucks, but not a huge deal).


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## Tnasty (Mar 23, 2016)

Uber will try to wezel it's way out of paying for anything and when they do,the people will come for your house and assets.


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## NOXDriver (Aug 12, 2018)

Tnasty said:


> Uber will try to wezel it's way out of paying for anything and when they do,the people will come for your house and assets.


First: its 'weasel'.

Second: No, they won't. If you get hit the pass will sue anyone and everyone. The pass will sue you, your personal Insurance, Uber, the other driver etc. So don't be surprised. That's just how it works. Since you have no money you are low on the list.

Third: I have yet to read about Uber or James River not paying legit claims, or a driver getting sued personally.

Lastly: Most of you people have no idea how insurance works or what it means to get sued. The people who HAVE been sued really never get involved... these things rarely go to court and even if they did, you have no money (you drive for Uber) so you have nothing to take.

As for 'Just BS' they sound like an uninformed person.


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## Tnasty (Mar 23, 2016)

NOXDriver said:


> First: its 'weasel'.
> 
> Second: No, they won't. If you get hit the pass will sue anyone and everyone. The pass will sue you, your personal Insurance, Uber, the other driver etc. So don't be surprised. That's just how it works. Since you have no money you are low on the list.
> 
> ...


I can cut corners on spelling when I choose, and won't be needing your help!

https://techcrunch-com.cdn.ampproje...-insurance-whenever-their-driver-app-is-open/


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## MarkR (Jul 26, 2015)

Who needs these headaches? I'm glad I do this in the summer and weekends in the summer when it's not raining and in the morning. Don't do uber in the winter. Too cold and snowy at times.


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## dgates01 (Jun 24, 2018)

Ubergoober6 said:


> Why are insurance companies uptight about rideshare as opposed to other jobs that require driving ie pizza delivery or pharmacy delivery?


Beacuse pizza and pharmacy drivers don't have passengers.


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## Launchpad McQuack (Jan 8, 2019)

Fozzie said:


> Rideshare drivers actually transport people in their vehicles, opening them up to much more risk. If you crash, chances are ~100% that you're going to get sued.
> 
> Delivery drivers only transport goods. How much risk is there in transporting a pizza?


Interestingly enough, I had much more trouble finding an insurance company that would accept that I was doing Uber Eats than I would have had finding one that was okay with UberX. I went and talked to some of the insurance companies that offer rideshare endorsements in my region, and I kept getting the same answer. Their rideshare endorsement is exactly that.....a rideshare endorsement. It's not a burritoshare endorsement (as one insurance agent termed it). As soon as you accept money to put something in your vehicle that is not a human being, then the rideshare endorsement goes out the window.


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## BigJohn (Jan 27, 2016)

Launchpad McQuack said:


> Interestingly enough, I had much more trouble finding an insurance company that would accept that I was doing Uber Eats than I would have had finding one that was okay with UberX. I went and talked to some of the insurance companies that offer rideshare endorsements in my region, and I kept getting the same answer. Their rideshare endorsement is exactly that.....a rideshare endorsement. It's not a burritoshare endorsement (as one insurance agent termed it). As soon as you accept money to put something in your vehicle that is not a human being, then the rideshare endorsement goes out the window.


That is because there is no witness to what you are doing (passenger) and therefore a lot less exposure to the media and insurance industry. However, as soon as there are major accidents to where it comes out in the media that the driver that caused it was doing Amazon Flex (because of a car full of various size boxes easily identifiable) that will start to change.


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## Stevie The magic Unicorn (Apr 3, 2018)

Well you shouldn't be driving customers on just ride share insurance anyway..

It's not good enough coverage, you need uber/lyft's insurance


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