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Uber / Lyft Car Sharing Insurance Coverage

Uber / Lyft Car Sharing Insurance Coverage

In 2014, I wrote an article about Uber. At the time, Uber did not appear to have any insurance to cover its drivers. This was especially frightening because if Uber did not insure the vehicles conducting its business operations, then the only the cars would likely to be found to be uninsured. Even if its drivers had insurance, all policies exclude coverage for use of the car for business purposes. Thus, an Uber driver would have to pay for a more expensive policy to cover him/her beyond their personal auto liability. Considering the reasons most people drive for Uber or Lyft, its highly unlikely that their drivers would spend the money.

$1,000,000 Ride Sharing Insurance Policy Coverage

Recently, I found out that Uber, and I believe Lyft as well, have paid for $1,000,000.00 coverage for each of their drivers. This is obviously a plus but you still must be wary. The policy is only in force when the Uber vehicle is working. If the Uber driver drops off a passenger and strikes a pedestrian on his/her way home, then the Uber policy does not apply. If the driver is in traffic but hoping to receive a dispatch and you are hurt, then the company policy does not apply. If you are struck by an off duty Uber X driver, chances are they have a $20,000.00/$40,000.00 policy. Remember an ambulance ride to a hospital will usually cost over $1,000.00.

Crash Test Dummy Questioning Ride Sharing Insurance Coverage

This means that if the Uber driver injures a person while not driving for Uber than his/her own insurance applies. If the driver works for Uber X than it is likely that they have a small policy. There are other risks as well.

Finger Print Uber / Lyft Drivers

Uber/Lyft Drivers lobbied hard not to be required to be finger printed. Why? I doubt that all of their drivers are criminals, so why the fuss? There must be more than a few of the drivers who have criminal records, otherwise it makes no sense for them to oppose this requirement. Finger printing is designed to protect the public, not Uber and Lyft. The cab and limo industries submit to it so why shouldn’t Uber and Lyft be held to the same standard. Uber and Lyft might be private companies but they serve the general public, just like limos and taxis. Anyone with a viable credit card is instantly approved for their services.

In the 6/15/16 edition of the Toronto Star, a 15 year old rider was molested by an Uber driver. It seems that we are seeing more and more criminal acts by drivers for ride sharing services. Not seeing many accusations against cab and limo drivers. Hmmmmmmmmmmmm….I wonder if it’s because of more background checks?

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