# why would personal insurance drop you?



## Kerplunkenstein (Sep 3, 2015)

If Uber/Lyft offers insurance while you're driving and using their app, whats the issue? thanks


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## SanPedroLover (Oct 26, 2015)

Personal insurance policies state that the vehicle they are insuring is used strictly for personal usage, no commercial usage. No money making is allowed to take place with that automobile. That is the reason there are expensive commercial insurance policies which, if I'm correct, state that the vehicle insured for commercial use is used strictly for that, no personal usage.

Also, while I am newer, from what I've come to understand is that the Uber/Lyft policies put in place are more for protection of all passengers in driver's car, passengers in other car, and the other vehicle involved should their be an incident. But the Uber/Lyft driver & their car are pretty much screwed and on their own. 

If I'm wrong on any of that someone can please correct me.


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## Tx rides (Sep 15, 2014)

SanPedroLover said:


> Personal insurance policies state that the vehicle they are insuring is used strictly for personal usage, no commercial usage. No money making is allowed to take place with that automobile. That is the reason there are expensive commercial insurance policies which, if I'm correct, state that the vehicle insured for commercial use is used strictly for that, no personal usage.
> 
> Also, while I am newer, from what I've come to understand is that the Uber/Lyft policies put in place are more for protection of all passengers in driver's car, passengers in other car, and the other vehicle involved should their be an incident. But the Uber/Lyft driver & their car are pretty much screwed and on their own.
> 
> If I'm wrong on any of that someone can please correct me.


You summed it up nicely


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## Kerplunkenstein (Sep 3, 2015)

SanPedroLover said:


> Personal insurance policies state that the vehicle they are insuring is used strictly for personal usage, no commercial usage. No money making is allowed to take place with that automobile. That is the reason there are expensive commercial insurance policies which, if I'm correct, state that the vehicle insured for commercial use is used strictly for that, no personal usage.
> 
> Also, while I am newer, from what I've come to understand is that the Uber/Lyft policies put in place are more for protection of all passengers in driver's car, passengers in other car, and the other vehicle involved should their be an incident. But the Uber/Lyft driver & their car are pretty much screwed and on their own.
> 
> If I'm wrong on any of that someone can please correct me.


I'm confused, if you own the car, why does insurance companies get to dictate how you use it? If you get into an accident while driving for uber, you would use their insurance. Not like you would use your personal insurance. VERY FRUSTRATING


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## kwzombie (Aug 21, 2015)

They don't dictate anything. You are paying for insurance to cover a risk (the risk of you getting in an accident and hurting/killing someone or wrecking your car). The risk you are paying for is that you are using this for typical personal use (going to and from work/school, running errands, groceries etc.). If you are driving Uber full time, you have almost the same risks as a Taxi driver (much more exposure, many more miles on the road, often in traffic conditions that contribute to higher accident rates, etc.) and are much more likely to end up making a claim. Plus, you have paying passengers (not friends/family) who are much more likely to sue whoever they can.

So you need commercial insurance. The dilemma is for a part time Uber driver who really doesn't represent the same risk profile as a full time taxi. That's where Uber's insurance and the hybrid policies come in. The problem is most jurisdictions have been slow to adopt hybrid policies due to a variety of factors (including government regulatory bodies taking a while for approval of new policies).

Make sense now?


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## SanPedroLover (Oct 26, 2015)

Kerplunkenstein said:


> I'm confused, if you own the car, why does insurance companies get to dictate how you use it? If you get into an accident while driving for uber, you would use their insurance. Not like you would use your personal insurance. VERY FRUSTRATING


1st question = That's just the way it goes. They are insuring your car so they have their rules/guidelines for the car & people they insure.

2nd question = From what I understand, if someone is involved in an incident that requires insurance getting involved while driving for Uber, Uber will make that driver first put a claim in with their personal insurance company knowing damn well the claim is most likely going to be denied and that driver will most likely be dropped from their insurance company for insurance fraud. If your car would need to be repaired you are now required to pay out of pocket for those repairs and if you can get lucky and get Uber to even acknowledge you still exist you might be able to get a $1,000 refund (they call it a deductible) if your car needed over $1,000 worth of repairs. If you become injured in that incident you are also on your own to cover that or use your own personal health insurance if you have it. That is what I've read on here numerous times, if I am wrong about any of that someone please correct me.

The situation is a mess and that is why insurance companies in about 10 states are starting to finally roll out hybrid policies that cover both.

So drive safe, keep your eyes on the road, watch traffic and anticipate, drive defensively, make sure you have a phone mount & try to look at your screen as little as possible unless stopped, etc.


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## Robertinvegas (Nov 6, 2015)

There are some insurance companies in a few states offering rideshare (Gap) insurance.


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## Huberis (Mar 15, 2015)

In my town, on a busy, big event weekend, 1/3 of the drivers could be from not just out of town, but out of state. Those people are completely lost, driving tired. Lots of wrong way down a one way, left hand turns on red onto a one way..... all kinds of issues. I'm not sure these people would be safe on the road in their own towns. If you are driving for hire, it changes the risk for a bunch of reasons. Add all the fabricated stress to the mix...... Find the thread on the forum where a Lyft driver maces a pax after freaking out over his irrational fear (as people have suggested) of being rated poorly by a pax who wasn't given her way...... It is a different way to drive.


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## Robertinvegas (Nov 6, 2015)

Risk by definition is something that you know up front and agree to. Of course there is more risk on the road as a ride share driver and there is more risk texting while driving, eating, having a screaming child in the back seat, and many many other issues. The amazing part is you can't do much about the child but you can decide not to drive for a rideshare company if you feel the risk is too high. I am an adult. I make my own decisions, accept the consequences, and I do not look to blame others for them. If I can reduce the risk I do and will continue to.


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## Mr Microphone (Sep 23, 2015)

I don't think it is right that the driver assumes all risk, for declining returns and false promises. The company now squeezed for maximum profit, rather then encouraging quality product. It seems that is the business model. It is too bad, because I like the idea of making a fair wage driving people around, I have met some great folks during my experience. I really think there is room to make a modest profit for all, especially those providing the service to make it happen. I also believe there is a SAFE way to do it where the drivers can afford proper insurance to protect themselves. 

Futile thoughts... But had to vent.


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## Robertinvegas (Nov 6, 2015)

Proper legal insurance is a must. If there is one thing that will kill this entire industry it is the lack of insurance that allows you to drive legally. Right now almost everyone is driving without legal coverage because they are using a noncommercial policy to drive commercially. You very simply have no coverage on your personal vehicle when you do this. The rideshare industry has many enemies and it will not be long before legal action is taken by them to stop all drivers because they do not meet state insurance requirements. There are some states that offer Gap Insurance but only a few. This is the most urgent issue and if Lyft and Uber are smart and want to survive they must find a way to encourage the insurance industry to provide gap insurance. I am more than willing to pay for it but right now it does not exist. The industry and everyone that drives is at extreme risk of having their lives destroyed without it.


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## BurgerTiime (Jun 22, 2015)

So this is the main reason I quit. I was told by my insurance company the reason commercial insurance is 10x more than regular coverage is because taxis and limos are on the road 10x more than the average driver. The more you are considered "on the road" the more subceptible you are to be in a accident.
Furthmore, when you use your personal vehicle to deliver pizzas for example Dominos, they provide 100% commercial insurance to cover you the moment you step outside the door and are clocked in. When you get into an accident pizzas can't sue you. There's also no grey area. You're covered.
When you drive "customers" around for a fee that's commercial transportation and they can sue your ass.
Uber also does not cover you when in transit to get a passenger and you are in a commercial endeavor. Insurance companies see that and will not cover during this period or anytime you are using your car in a commercial sense. That "gap" can land you in some serious legal matters to say the least.

One driver opened his door to a bicyclist and cause him to go flying, landing on his face knocking his front teeth out and incurring $250,000 in medical bills. Uber says he did not have a passenger and they will not pay. His car insurance says you where using your car in a commercial manor which violates your policy. Now the victim is trying to sue Uber and if he looses he will own that guys house and be in debt for a very long time (prob for life).

Also most credit unions do not give out commercial loans. If you obtained your loan through a credit union, chance are you have committed loan fraud without even knowing it. The bank owns your car until that note is paid off. So the bank has a responsibility to have the proper coverage if you default on proof of insurance. If you cannot provide proof of insurance, the bank will provide their own insurance until proof. So imagine the legal issues if you wreck and are using a policy the bank provided and you used that car on a fraudulent loan!
http://www.oregonlive.com/commuting/index.ssf/2015/10/cyclist_sues_after_uber_privat.html


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## Mr Microphone (Sep 23, 2015)

Yep I am all but done after talking to my insurance agent. There is no way to drive ride-share and be safely insured. I cannot believe the risk I have been taking. Don't believe what they tell you at Uber central, YOU take the risk, YOU are responsible, because YOUR name will be on the lawsuit. They may also sue Uber, but they will only protect their interest. Now, if there were a hybrid policy available (non in MN currently) I would have to weigh the additional cost before justifying the purchase, and right now ANY additional cost puts me out of business, as the money just isn't there. I also found I CAN be covered to deliver things but not people, for little additional cost to my current insurance, AND I can get an additional umbrella policy at a reasonable price. It's a no brainer, there is money in pizza. Pizzas don't slam doors or puke either.


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## Huberis (Mar 15, 2015)

Uber takes advantage of the insurance issues and concerns to keep drivers rather isolated and under their thumbs. The current insurance reality ensures drivers are unable to act like true independent contractors, create their own client base, even insist on setting their rates they will work for.


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## Joseph5050 (Jun 18, 2016)

Mr Microphone said:


> I cannot believe the risk I have been taking. Don't believe what they tell you at Uber central, YOU take the risk, YOU are responsible, because YOUR name will be on the lawsuit.


In california STATE FARM has a hybrid police that is affordably priced.

While on the subject of minimizing RISK. Not trying to be offensive or a dick, but... _I would HIGHLY suggest everyone join their local drivers guild_. SF bay area has *SfDriversGuild* and NYC has *independent drivers guild*. They are *FREE*. It's *YOUR* fault as an "independent contractor" (my ass) if you don't properly run *YOUR* business; these guilds are the *ONLY* one in the game looking out for you.

I don't know if you got a family, but try explaining to your kids on why they can't go to college cuz 10 years ago you didn't do your do diligence. It's 100% your responsibility. To paraphrase your words... Uber/Lyft don't give a flying F what happens to your ass in the end.


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## Joseph5050 (Jun 18, 2016)

Kerplunkenstein said:


> I'm confused, if you own the car, why does insurance companies get to dictate how you use it? If you get into an accident while driving for uber, you would use their insurance. Not like you would use your personal insurance. VERY FRUSTRATING


Kerplunkenstein, i use to work for an insurance company. Insurance is a game of charging a customer a fair market value for the risk the insurance company is accepting. Personal injury is a significant portion of an insurance companies payout. This is no different that the miles you drive; the more you drive the more risk within a given time span and hence they would/should charge more.


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## Speedy Pete (Jul 26, 2016)

Commercial insurance costs me $130.00 a month.


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## SEAL Team 5 (Dec 19, 2015)

Speedy Pete said:


> Commercial insurance costs me $130.00 a month.


That's cheap! Who's your Underwriter?


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## Speedy Pete (Jul 26, 2016)

SEAL Team 5 said:


> That's cheap! Who's your Underwriter?


Geico. They know how to to do it right. $500 deductible with 50,000/100,00 I had to have everything straight before Xchange leasing would let me have the car. Before anyone starts in on me for leasing I am only leasing until I get up enough cash to buy a car. Hey it got me on the road. And really it is way cheaper than leasing a taxi daily. LOL...


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## SEAL Team 5 (Dec 19, 2015)

Speedy Pete said:


> Geico. They know how to to do it right. $500 deductible with 50,000/100,00 I had to have everything straight before Xchange leasing would let me have the car. Before anyone starts in on me for leasing I am only leasing until I get up enough cash to buy a car. Hey it got me on the road. And really it is way cheaper than leasing a taxi daily. LOL...


Oh, you said commercial. 50/100 is TNC insurance not commercial. I'm sorry, I misunderstood you. Actually that's kind of expensive for TNC insurance.


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## Speedy Pete (Jul 26, 2016)

SEAL Team 5 said:


> Oh, you said commercial. 50/100 is TNC insurance not commercial. I'm sorry, I misunderstood you. Actually that's kind of expensive for TNC insurance.


What do you mean by TNC? I am insured through the commercial division and it does say it is a commercial policy. Geico says if there is an accident that it get reported to them and if it is while working then what they do not cover then UBERS policy (the million dollar liability req by IL) would be who is responsible for the rest.


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## SEAL Team 5 (Dec 19, 2015)

Speedy Pete said:


> What do you mean by TNC? I am insured through the commercial division and it does say it is a commercial policy. Geico says if there is an accident that it get reported to them and if it is while working then what they do not cover then UBERS policy (the million dollar liability req by IL) would be who is responsible for the rest.


Because real commercial insurance will allow you to transport anyone anytime and not just fares secured through an app. Your insurance only is in affect when Uber or any other TNC had a primary policy already in force. You would never have 50/100 with a commercial policy. It would just be a single limit like 1 million. Did you get an Acord similar to this?


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## phillipzx3 (May 26, 2015)

Seal Team 5 is correct. A commercial policy worth a tinkers damn will be a million in coverage. And it won't be $130 a month. 

50/100 is nothing. Just wait until the scam artists start targeting Uber drivers like they've done with cabs.


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