Ever since the introduction of ridesharing services like Uber and Lyft, concern has been raised about the insurance concerns of such services, and now, states and cities are taking a close look at how that liability should be handled.
In my research, it seems that not only are ridesharing drivers covered by their own private insurance, but by the company’s insurance as well.
They have double coverage, and despite the cries and warnings from taxi and insurance companies, there doesn’t seem to be a problem.
Companies like Uber use smart phone apps that allow drivers to rent out themselves and their vehicles out to passengers nearby who are willing to pay for a ride. However, everyone seems to be bent out of shape about the Uber insurance liability issues.
Now, cities and states are tackling that regulation. Seattle’s city council discussed passing an ordinance that would regulate ridesharing. Arizona and Colorado have bills in the works too.
A death of a young girl who was killed New Year’s Eve in San Francisco by an Uber driver, however, is causing many to ask where the line is drawn between personal automobile insurance and commercial insurance.
Uber does offer commercial insurance, but that insurance does not cover drivers between rides. Traditional taxi services’ commercial policies do cover drivers who are in between fares. But, passengers do have to keep some things in mind. As a passenger, traditional insurance policies may not cover you if your driver is using their car as a business.
If you’re injured while in an Uber car, who covers the medical bills? Many agencies are concerned about who foots the bill for medical injuries in unregulated app-cabs.
Actually, from what I see, the current state of things is good for the individual driver. Not only does he or she have personal insurance, but is also covered by Uber insurance. Uber also has uninsured motorist coverage for the cars being used for business purposes. The passenger is protected on all angles by Uber insurance. They are more protected than the drivers, in my opinion.
Uber has a $1 million liability and $1 million underinsured/uninsured motorist policy for the passengers.
So, the passenger is protected up to $1 million dollars, and possibly $2 million depending upon where the fault lies for the accident.
Have you had an accident in an app-cab? Call us today at (405) 703-4567 to make sure your rights are protected.