# Does anyone know how much Uber/Lyft pays for TNC insurance per car on average?



## grq79 (Oct 6, 2015)

It's going on a decade and I still can't find any data on Uber and Lyft composite rate insurance.

I know there is no way they are paying full price for commercial fleet liability, but I can't find any information on the internet, nor will James River disclose this information.

I've been looking into potential TNC insurance for a local fleet, but even then James River will not give out a quotes. It's very frustrating.

So there is no way to finalize my business plan without it.

My only guess is that fleet insurance is based on composite rate with a 25% down payment and an agreed upon spiff on each ride. The cars per deposit most likely are $50 to $100 with the spiff bringing in an additional $150 to $200.

Can someone in commercial transportation confirm this hypothesis?


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## Mars Troll Number 4 (Oct 30, 2015)

grq79 said:


> It's going on a decade and I still can't find any data on Uber and Lyft composite rate insurance.
> 
> I know there is no way they are paying full price for commercial fleet liability, but I can't find any information on the internet, nor will James River disclose this information.
> 
> ...


Companies *generally* don't provide insurance coverage like James rivers does for uber. It's very possible that there's only a handful of customers in the US using this business model. Probably less than a hundred policies have EVER been written for this model.

They just flat out won't sell to you. It's very high risk for them because of the very nature of how it works, only providing coverage while certain conditions are met is a very _unconventional_ way of doing it. It put's too much in the hands of you properly documenting everything.

Until lyft started operating this way, it just wasn't sold this way. You either had commercial insurance or you had personal insurance.

If you're trying to put together an uber knock off... my advice is to not bother.

You won't be able to compete with Scruber and Gryft's money burning business model.

They are too intent on burning down the industry then they are at making money.

Starting ANY sort of for-hire business these days is a very VERY bad idea.


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## grq79 (Oct 6, 2015)

I would argue otherwise, I know there is risk and cost on the insurance but it can be a controlled cost that the booking fee covers based on initial deposit.

James River will sell, they just don't give out quotes to anyone, but their brokers are looking for business.

I'm just looking for an educated guess on composite rates. My assumption is a deposit and per ride fee that goes to overall insurance cost pre year. So on average if they are only paying for period 2 and 3 it's much less then average cost of full commercial by 30% to 40%. So most likely around $150 to $250 with discount on fleet deposit.


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## BigJohn (Jan 27, 2016)

Your question is really meaningless, unless you are a major transportation provider looking for comparative information.

Regardless of what type of transportation is provided or used, fleets will always get a much lower rate. Same thing with health insurance, Larger employer provided health insurance will ALWAYS be way cheaper than an individual health insurance policy.


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## grq79 (Oct 6, 2015)

I'm looking for an educated guess on this topic, this is a business model that is taking off and there are a ton of micro ride-sharing services that use composite rates.

I'm looking for a quote for a business plan. Obviously this forum is filled with negative-first opinion without any helpful information.


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## BigJohn (Jan 27, 2016)

grq79 said:


> I'm looking for an educated guess on this topic, this is a business model that is taking off and there are a ton of micro ride-sharing services that use composite rates.
> 
> I'm looking for a quote for a business plan. Obviously this forum is filled with negative-first opinion without any helpful information.


Sorry to say, but my post stands. This is a forum for primarily Uber drivers, but for other rideshare service drivers as well. The answers you are looking for are not going to be answered on this forum. You need to seek out an appropriate forum for your questions.

For example, putting "forum to discuss business insurance" into a google search quickly and easily found this site: https://insurance-forums.com/community/

After all, would you ask your dentist tax advice questions?


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