Uber And Your Auto Insurance
Driver Concern: ☀Uber And Your Auto Insurance☀
Uber is a ridesharing company that has been providing quality low-cost alternatives to taking taxis. They guarantee that their customers and drivers are taken care of in any eventuality with their extensive insurance policy. The policy varies from country to country, however, the basics of their policy are always similar.
In the US, for example, Uber has taken out a commercial insurance policy which covers up $1 million in damages for each incident. The drivers are covered for third party liability from the second that a driver accepts a trip to the moment when the passenger is dropped off at the destination, however, this policy will only take precedence over personal insurance holders like uberX drivers.
This does not apply to uberBLACK drivers. Their commercial insurance will always take priority at this time.
In the case that the ridesharing vehicle gets into an accident with a vehicle that is uninsured or under-insured, Uber’s policy will cover all of the damages associated with both vehicles up to $1 million regardless of who was responsible for the accident. The reasoning behind this is that they wish to avoid hit and run situations.
The time between trips when a ridesharing vehicle does not have any passengers is the responsibility of the driver’s personal auto insurance to cover. Sometimes the personal auto insurance policies may not be able to cover all of the relevant costs associated with a particular accident while the driver was in-between trips in which case Uber’s insurance policy will cover the rest of the cost up to $100,000 per accident.
This is a very generous policy and is used as an incentive for the drivers to ensure that they have taken out their own personal auto insurance policies.
Filing an Uber Accident Report
Every user who signs up to use the Uber app must accept the terms and conditions before they hail a ride. In these terms and conditions there is a clause which gives Uber limited liability when it comes to accidents that occur while using its services. This means that in the case of extreme negligence by the driver, Uber will not be liable to pay for the damages.
Drivers are obligated to make a report to Uber headquarters in the case of any accidents. Uber have set up their insurance policy so that when an accident occurs and the driver accepts liability, a representative from Uber’s insurance firm [James River Insurance Company] gets in contact with the passenger to get as much information about the incident as possible including the passenger’s state of health.
If the passenger was not injured then he or she will not be contacted again. However, if there was injury to the passenger, Uber’s insurance firm will work out whether the driver’s auto insurance policy will cover the costs.
In the case that an accident occurred while you were in an Uber car but you have not heard from Uber’s insurance company with regards to your claim on damages, you should see an experienced road traffic lawyer for advice on how to proceed.
Deductible: Uber has a $1,000 deductible. If you are at fault, then you will be responsible for paying the deductible if you want to file a claim under Uber’s insurance policy. If the other driver was at fault, then hopefully they have insurance and you can go after their insurance instead. If they do NOT have insurance, then you are back at square one and would be responsible for the $1,000 deductible.
Your Insurance: You can surely try filing a claim under your personal insurance, especially if the deductible is less than $1,000. If you are unsure if your insurance policy would cover you in situations like this, then we recommend that you give them a ring and inquire about it beforehand. If you don’t want to necessarily out-yourself to your insurance company, you can always inquire about it anonymously.
Deactivation: Once an accident is reported to Uber, they will deactivate your account. This is policy and procedure. If your vehicle has been damaged, Uber do not want you trying to drive on their platform while there is now an open accident case.
Your vehicle would need to be repaired and the case closed before your account can be reactivated. So don’t worry, your account will be restored. Only reason it will not is if there is a more serious issue like drunk driving.
You should save a copy of Uber Incident Report Form so you will have it at your finger tips. In case of an accident, you should be proactive and fill this out and send it to Uber. This will speed up the process!
Remember: Uber only works with drivers and partners who hold personal insurance if they are driving on the uberX platform or commercial licenses for the professional drivers who operate under uberBLACK. The company prides itself in how extensive its cover is and is always looking for ways to make it better.