# UBER and commercial insurance fraud



## stuber (Jun 30, 2014)

If you carry commercial liability insurance for your car service business, AND, use UBER, then you need to disclose the percentage of time you're logged in to the UBER app.

The reason is simple. Insurance for Prearranged FOR HIRE vehicles is significantly cheaper than insurance for Demand or taxi FOR HIRE vehicles.

I buy prearranged insurance and just saw a 25% increase over last year. This is happening despite the fact that I had no claims or tickets. Same vehicle. I'm one year older of course, but I'm not using the UBER app at all these days.

So why the increased premium?

My agent explains this as heavy claims pay outs for UBER drivers who are purchasing prearranged insurance, then using UBER for demand trips without disclosing their high UBER usage.

In other words, drivers are defrauding their insurance policies by mistating their UBER usage. Instead of purchasing insurance designed for taxi operations, these drivers are buying limo (prearranged) insurance and lying about how much time they spend running UBER (demand) jobs.

Taxi insurance is significantly higher because of the inherent risks that prearranged insurance doesn't have.

So, even though I don't use UBER, my rates are increasing.

The simple fix of course would be for insurance carriers to require UBER drivers to disclose their login hours during the previous 12 months before any claim can be be paid.

I imagine this is already happening, or soon will be happening.

Thoughts?


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## 20yearsdriving (Dec 14, 2014)

Yes I got the memo 25% increase in 2016 
Other 2 drivers got the same memo 
Some one has to pay the broken dishes


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## 20yearsdriving (Dec 14, 2014)

20yearsdriving said:


> Yes I got the memo 25% increase in 2016
> Other 2 drivers got the same memo
> Some one has to pay the broken dishes


Uber telling the truth ? Mmmm


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## 5 Star Guy (Nov 7, 2015)

That doesn't make any sense. If you are a full time limo or full time Uber driver its the same business. A taxi is different. I can see the rates going up, not for those reasons though. People are still trying to squeeze in the coverage they need, for part time work, which isn't possible.


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## Huberis (Mar 15, 2015)

5 Star Guy said:


> If you are a full time limo or full time Uber driver its the same business


It is not the same business.

This was just posted today:
http://ww2.kqed.org/news/2015/11/16...fer-a-tiny-glimpse-of-data-from-uber-and-lyft


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## 5 Star Guy (Nov 7, 2015)

There a ton more Super drivers than taxi drivers and they drive more at this point than taxis, which is why taxis are so upset. It is the same business, you wait for a pax to make a request like a limo, not a taxi. You could say taxi drivers know the parts they drive better, drive more often and driving in a company owned taxi makes them more careful being a professional driver. How is it different?


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## stuber (Jun 30, 2014)

5 Star Guy said:


> That doesn't make any sense. If you are a full time limo or full time Uber driver its the same business. A taxi is different. I can see the rates going up, not for those reasons though. People are still trying to squeeze in the coverage they need, for part time work, which isn't possible.


Prearranged service is less risky than demand service such as UBER or taxis. Distraction, navigation on the fly, rushing to clients. These factors plus others tend to make UBER and taxis more prone to accidents.


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## Huberis (Mar 15, 2015)

5 Star Guy said:


> It is the same business, you wait for a pax to make a request like a limo, not a taxi.


The vast majority of my calls are booked over the phone. That does not mean I operate like a limo however, not even close. The same applies to an Uber driver. I have never been a limo driver, but I have spent plenty of time observing both limo drivers and more recently Uber drivers. There is a hell of a lot more similarity between the way in which an Uber car operates in relation to a taxi than a limo. It isn't even close.


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## Huberis (Mar 15, 2015)

5 Star Guy said:


> There a ton more Super drivers than taxi drivers and they drive more at this point than taxis, which is why taxis are so upset.


Talk to the SCPD or Ferguson township police officers who work evenings here and run your thesis by them. See what they have to say. I see you are in Boston, I can not speak for Boston. Uber does an excellent job of terracing reality. I suppose what you speak of Boston could have merit, however what you suggest simply is not the case here.


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