SATURDAY, MARCH 18, 2017
UBER! Everyone has heard about this growing trend in transportation sweeping the nation. In the age of "Don't drink & drive" more & more people are using this service as opposed to Taxis. Why? Its much cheaper, nicer cars & friendlier service (basically its everyday people moonlighting as taxi drivers in their personal car).
However, the minute a person steps into that car, the possibility of "Uninsured risk" he or she is taking becomes very real.
You see, these people mean no harm. They are just trying to make a little money of the side to make ends meet. However, The second they are using their car for transporting other people on a paying basis their Normal Car insurance policy becomes invalid. The real problem is most of these drivers don't even know they are breaking the MAIN rule of their personal car insurance policy. They have a policy like you & I do. One of the main questions/statements you sign on a application for car Insurance is: "Do you use the car your insuring for commercial purposes?" or "I hereby declare I am not using my car for commercial purposes or transportation for hire".
Heres the situation: The Uber driver has an accident (his/her fault). Passengers suffer injuries related to his negligence (fault). The drivers Insurance company denies the claim (doesn't pay for anything, damage, injuries, etc) because of misrepresentation of the driver.
ALL uber drivers MUST carry "Commercial" auto Insurance when transporting "others" as means of income. Keep in mind, many uber drivers are young which statically means a greater chance of an accident. MANY Insurance companies will not even insure UBER drivers on commercial policies because of the inherent risk of transporting people. The worst time to learn the driver is either not properly covered or has state minimum coverage (25/50/10 in most states) is when your racking up $1000's of medical bills do to the drivers fault in an accident.
SMART ADVICE: Ask for a copy of the drivers insurance card before using their service. Make sure the word "Commercial" appears on that card & make sure his coverage's shown are 100/300/100 or higher!!
Posted 9:53 AM