After much pointless discussion on the earlier thread that was hijacked by a couple soreheads who think they know a whole lot more than they actually do, I am opening this new thread as a place to have a productive conversation on a well-researched, intelligently presented subject that we all should be concerned with. If you feel the need to insult, name-call, ridicule, jibe, nettle, cajole, or bullyrag, please login to the CNN forums and work through your demons there.
We have been told by a very vocal, very ill-informed minority that using the names of actual living human beings may be bad form on public forums like this one and that we should always use a nomme de plume. Therefore, let us accept that I had a wonderful conversation this morning with Mr. Chris Boedeker. Mr. Boedekeris the Senior Claims Manager at Uber.
Answered 1/5/2016 by Chris Boedeker, Senior Claims Manager at Uber. Telephone conversation with [Desert Driver]
Scenario
An Uber driver has a passenger in his car and is on a trip with the meter running. The Uber driver does NOT have commercial auto insurance and he is violating the livery business exclusion of his personal automobile policy by driving for Uber. The Uber driver then gets into an accident that is his fault. His car is severely damaged, the car he hit is severely damaged. Both the Uber driver and the Uber passenger are injured, as is the driver of the other car. Referring to the graphic on the Uber insurance page, this scenario takes place entirely in Period 3. See graphic at
http://blog.uber.com/ridesharinginsurance
Questions:
1) Who pays for the Uber driver's and Uber passenger's medical care?
Uber's Rasier liability insurance policy will cover the injured Uber passenger. The Uber driver's medical claim will not be covered by Uber's Rasier insurance liability or collision policy. And since the driver does not have a commercial insurance policy of any sort on his/her automobile, the Uber driver's personal automobile policy will not be applicable here either as the Uber driver is violating the livery exclusion of his/her personal automobile insurance policy. In the event that an Uber driver is injured in a crash that is his/her fault while driving for Uber with a passenger in the car, the only medical insurance coverage that applies in this scenario is the driver's health insurance coverage. If the driver has no healthcare insurance coverage, which is a violation of the Affordable Care Act, the driver will be responsible for his/her medical expenses out-of-pocket.
2) Who pays for the other driver's medical care?
The Uber Rasier liability insurance policy is the primary insurer, so the driver of the other car and his/her passengers will make his/her medical claim against Uber. The Uber driver's personal policy will not be employed to cover the medical claims of the not-at-fault driver and the occupants of that driver's automobile.
3) Who pays for the repairs or replacement of the Uber driver's car?
Uber expects the driver to first make the property claim against his/her personal automobile policy. Uber understands that most personal automobile insurance carriers will deny the claim. Uber also understands that many personal automobile insurance carriers will cancel the policy in this scenario. After the driver's personal automobile insurance carrier denies the claim, Uber's contingent collision coverage will cover the property claim with a $1000 deductible.
Although Uber is aware that most drivers will likely have their personal automobile policy canceled in this scenario, Uber is not currently offering to assist drivers find other automobile insurance coverage.
4) Who pays for the repairs or replacement of the other driver's car?
Uber's Rasier liability insurance policy does.
As we wound up our conversation, we agreed on some simple best practices until the automobile insurance industry figures out how to insure TNC drivers.
- Be really careful out there.
- Don't even think about driving for a TNC if you do not have adequate healthcare insurance. (Remember, failing to carry healthcare insurance on yourself is a violation of the ACA.)
- Check your insurance policy and make sure you understand whether or not your policy has a livery exclusion.
- Don't volunteer to your automobile insurance carrier that you are driving for a TNC. However, if your insurance carrier asks if you are driving for a TNC, you better be honest, even if it means having your policy canceled.
- If all you carry is liability insurance on your automobile, don't even think about driving for Uber. Uber will NOT extend collision and comprehensive to your automobile if you do not carry collision and comprehensive on your personal policy.
- At the rate TNCs are gaining popularity, the automobile insurance industry is going to have to figure this out sooner as opposed to later. Keep abreast of news and developments in the automobile insurance arena
- Never pick up a rogue fare. Doing so means you have ZERO insurance coverage anywhere.
- Do not end the trip until all passengers and their belongings are out of your car and all doors are closed and locked.
I hope you find this information as helpful and informative as I did. I have to say I was pleased and impressed when Mr. Boedeker rang me up on my cell phone in response to the questions I posed on the Uber support E-mail page. Mr. Boedeker was friendly, professional, articulate, and a genuinely pleasant man. I would rate my interaction with him five stars.