Uber now insures drivers (and passengers) every time its ridesharing app is turned on (replace)
Surge pricing and battle over its presence (in some cities) aren’t the one points dealing with Uber and different ridesharing providers lately. Unanswered questions abound about who pays when an UberX driver will get into an accident. Moderately than look forward to insurance coverage corporations to determine issues out — and proceed leaving its drivers and clients in a possible protection no man’s land — Uber’s extending its insurance coverage coverage to supply contingent protection when a driver has the Uber app on, however is not on a visit. Previous to this variation, drivers’ private insurance policies have been the one insurance coverage out there, and it is unclear whether or not private insurance coverage will all the time apply in such situations. So, that is why Uber’s now providing protection as much as $one hundred,000 for bodily accidents (at a max $50,000 per individual) and as much as $25,000 for property injury if an accident occurs and the driving force’s private coverage will not pay out.
The protection the corporate’s providing is definitely higher than nothing, nevertheless it’s removed from the $1 million coverage that kicks in when drivers are literally on a visit, and offers rather a lot lower than most private insurance policies, too. That stated, it is also essential to say that the transfer is mostly a stopgap measure. In line with Uber, it needs to assist out drivers “whereas the insurance coverage business and state governments replace insurance policies and laws for the brand new world of ridesharing transportation.” Is sensible to us, however may we advocate becoming a member of the Peer-to-Peer Rideshare Insurance coverage Coalition to assist them alongside?
Replace: Uber contacted us to tell us that they’re already part of the coalition — glad they took our recommendation earlier than we gave it. Oh, and so did Uber competitor Lyft, which contacted us to say that it will “present backstop protection to drivers when they’re in match mode and aren’t offering rides. We can be rolling this out state-by-state within the days to return.”