Agents
London - Inshur - http://bit.ly/inshurLondon inshurWhiz
California - SafeButler - https://safebutler.com/uber/?ck=up01 - Compare price and more TaroTeaFan
New Jersey - Young Alfred - https://youngalfred.com/get-started - 215.586.5055 - alfred@youngalfred.com
New York - https://www.inshur.com inshurWhiz
Ohio - Cleveland/Akron - Erie - Brad Sussman - (Erie sponsorship ended) BradSussmanInsurance
Pennsylvania - Young Alfred - https://youngalfred.com/get-started - 215.586.5055 - alfred@youngalfred.com
Washington DC, Maryland, Virginia - Erie - Jim O'Brien - 703-838-9624 Jim O'Brien
To represent your insurance services on our forums please contact uberpeople.net@gmail.com
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Most new drivers may not understand the huge amount of risk they are assuming because no one makes any effort to tell them. Read on and find out how to best protect yourself including what Uber, Lyft, and other app-based Transportation Network Companies (TNCs) neglected to tell you and what information is publicly available.
I am going to focus on the United States. Other countries have different, although similar laws. I am assuming that you already understand how automobile insurance protects you, your vehicle, your passengers, and other people/property that may be involved in an accident. Automobile insurance is also required by law in every state, although the requirements differ from state-to-state. TNCs require proof of insurance before they'll let you drive.
Insufficient Auto Insurance that Uber, Lyft, and other TNCs provide
TNCs are required by law in many states to provide insurance for drivers and passengers while online. Similar coverage for UberEats. Find out the specifics of each TNC that you drive for in your state. In general, there are 4 phases or periods defined in the image below.
0: When Offline or the App is not running.
1: Online, Waiting for a request/ping
2: Driving to pickup
3: Driving to destination with passenger. Ends at drop-off.
Note: Terrible reputations of insurance companies used by TNCs and gaps in coverage:
Period 1: Minimum Liability, No Collision, No Comprehensive, No UM/UMI.
Period 2 & 3: $1,000 deductible higher than chosen by most drivers. Lyft's is $2,500.
Periods 1,2,3: No towing. No rental reimbursement, or other "extras".
Danger/Risk for You
Most new drivers continue using their current personal insurance policy. This often is their first major mistake. A few new drivers, who previously drove taxis and already have more expensive commercial insurance, are much better off.
Most auto insurance companies do not allow policy holders to work for any TNC, even part time. These insurance companies may immediately cancel your policy for this reason. If they even suspect you work for a TNC then they may immediately require proof that you do not. They may also deny a claim for this reason, leaving you to bear the entire cost.
The best course of action is to first determine the policy of your current insurer indirectly by contacting an independent insurance specializing in rideshare. If your current insurer does not allow rideshare there are several possible courses of action.
You owe it to yourself to call multiple insurers. Insurance payments may be your biggest expense after gas. There can be a huge price difference between insurers, based on where you live (there may be a 50% price difference in an adjacent town) and the amount of coverage provided. Have them explain all the details.
Procedure after an Accident
London - Inshur - http://bit.ly/inshurLondon inshurWhiz
California - SafeButler - https://safebutler.com/uber/?ck=up01 - Compare price and more TaroTeaFan
New Jersey - Young Alfred - https://youngalfred.com/get-started - 215.586.5055 - alfred@youngalfred.com
New York - https://www.inshur.com inshurWhiz
Ohio - Cleveland/Akron - Erie - Brad Sussman - (Erie sponsorship ended) BradSussmanInsurance
Pennsylvania - Young Alfred - https://youngalfred.com/get-started - 215.586.5055 - alfred@youngalfred.com
Washington DC, Maryland, Virginia - Erie - Jim O'Brien - 703-838-9624 Jim O'Brien
To represent your insurance services on our forums please contact uberpeople.net@gmail.com
-----
Most new drivers may not understand the huge amount of risk they are assuming because no one makes any effort to tell them. Read on and find out how to best protect yourself including what Uber, Lyft, and other app-based Transportation Network Companies (TNCs) neglected to tell you and what information is publicly available.
I am going to focus on the United States. Other countries have different, although similar laws. I am assuming that you already understand how automobile insurance protects you, your vehicle, your passengers, and other people/property that may be involved in an accident. Automobile insurance is also required by law in every state, although the requirements differ from state-to-state. TNCs require proof of insurance before they'll let you drive.
Insufficient Auto Insurance that Uber, Lyft, and other TNCs provide
TNCs are required by law in many states to provide insurance for drivers and passengers while online. Similar coverage for UberEats. Find out the specifics of each TNC that you drive for in your state. In general, there are 4 phases or periods defined in the image below.
0: When Offline or the App is not running.
1: Online, Waiting for a request/ping
2: Driving to pickup
3: Driving to destination with passenger. Ends at drop-off.
Note: Terrible reputations of insurance companies used by TNCs and gaps in coverage:
Period 1: Minimum Liability, No Collision, No Comprehensive, No UM/UMI.
Period 2 & 3: $1,000 deductible higher than chosen by most drivers. Lyft's is $2,500.
Periods 1,2,3: No towing. No rental reimbursement, or other "extras".
Danger/Risk for You
Most new drivers continue using their current personal insurance policy. This often is their first major mistake. A few new drivers, who previously drove taxis and already have more expensive commercial insurance, are much better off.
Most auto insurance companies do not allow policy holders to work for any TNC, even part time. These insurance companies may immediately cancel your policy for this reason. If they even suspect you work for a TNC then they may immediately require proof that you do not. They may also deny a claim for this reason, leaving you to bear the entire cost.
The best course of action is to first determine the policy of your current insurer indirectly by contacting an independent insurance specializing in rideshare. If your current insurer does not allow rideshare there are several possible courses of action.
- Transfer to an insurer that allows you to rideshare, but provides no coverage during these times, like Liberty Mutual. You depend on coverage provide by the TNCs.
- Transfer to an insurer that offers a TNC rider, endorsement, or hybrid policy, at an additional cost. Find out specifics which vary from insurer to insurer and state-to-state. These generally "fill in gaps" of TNC insurance, but have maximum mileage restrictions to qualify. (Recommended - Table at bottom)
- Get commercial insurance. The higher cost might be justifiable if you rideshare full-time or near full-time.
- Insurers may not yet offer all these options in areas recently opened to TNCs. A licensed insurance agent or independent agent familiar with rideshare should know the state-mandated minimum coverage.
You owe it to yourself to call multiple insurers. Insurance payments may be your biggest expense after gas. There can be a huge price difference between insurers, based on where you live (there may be a 50% price difference in an adjacent town) and the amount of coverage provided. Have them explain all the details.
Procedure after an Accident
- Do not move either car unless they are in a dangerous location.
- If anyone (pedestrian or passenger in any vehicle) is injured then call 911 for an ambulance immediately.
- If there are any witnesses then get their names, phone #s, or other contact information.
- Call a cop to the scene. Get cop's name, badge #, and how to get a copy of the police report. Cop will not know and generally not care if you are driving for a TNC at the time of the accident unless you (or passengers) mention it, they see the application running on your phone, or trade-dress on your car.
- Your insurer will care, but generally rely on the honesty of the policyholder to report accurately. Knowingly lying is fraud. In rare circumstances, your insurer may demand a letter from Uber that you are not working for them.
- Exchange information with other driver(s) including: name, address, phone or email, insurer, policy#
- Arrange for a tow, if necessary. The cop may provide assistance at a cost if you have no other option.
- While at the scene. Use the driver-App to report the accident and take pictures of damage.
- If you have passengers then make sure they can get to their original destination safely.