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Ask Your Peers  Uber Drivers, insurance for people that use their car for Uber or Lyft in Illinois (Closed)


Larry Lubell, Urban Insurance Agency - Chicago, IL 60610
Reputation: 21 - Total posts: 2


There should no longer any reason to rate these as Limousines.

While Uber is clearly taking on a large percentage of the risk, our carriers still fall into two groups; personal passenger policies that will not knowingly take an Uber driver, and commercial policies that want to write them as a limo and charge full price despite the lower exposure.

From the time the person "Turns on the app", even before they have a ride, they are on Uber's insurance. This by all measures results in a person with a risk to their own insurance company LOWER than normal.<o:p></o:p>

ANY sources, in Illinois, for coverage in between Private Passenger and Public transportation?

Right now we write some as commercial, but others we lose because they simply go elsewhere and lie, they just list themselves as "Unemployed," something I refuse to be a party to for obvious reasons.

Uber’s insurance coverage for ridesharing in the U.S. includes as of July 14, 2014:

$1 million of liability coverage per incident. Uber holds a commercial insurance policy with $1 million of coverage per incident. Drivers’ liability to third parties is covered from the moment a driver accepts a trip to its conclusion. This policy is expressly primary to any personal auto coverage (However it will not take precedence over any commercial auto insurance for the vehicle). We have provided a $1 million liability policy since commencing ridesharing in early 2013.

$1 million of uninsured/underinsured motorist bodily injury coverage per incident. In December 2013, we also added uninsured/underinsured motorist coverage. In the event that another motorist causes an accident with an uberX vehicle and doesn’t carry adequate insurance, this policy covers bodily injury to all occupants of the rideshare vehicle. This is important to ensure protection in a hit and run.

Contingent comprehensive and collision insurance. If a ridesharing driver holds personal comprehensive and collision insurance this policy covers physical damage to that vehicle that occurs during a trip up to the actual cash value of the vehicle, for any reason, with a $1,000 deductible.<o:p></o:p>

<o:p> </o:p>

No fault coverage (e.g., Personal Injury Protection) is provided in certain states at similar levels as limos or taxis in those cities.<o:p></o:p>

<o:p> </o:p>

$50,000/$100,000/$25,000 of contingent coverage between trips.** During the time that a ridesharing partner is available but between trips, most personal auto insurance will provide coverage. However the driver is also backed by an additional policy that covers driver liability for bodily injury up to $50,000/individual/accident with a total of $100,000/accident and up to $25,000 for property damage. This policy is contingent to a driver’s personal insurance policy, meaning it will only pay if the personal auto insurance completely declines or pays zero. This policy meets or exceeds the requirements for 3rd party liability insurance in every state in the U.S.

As always, all UberBLACK, UberSUV, or UberTAXI rides are provided by commercially licensed and insured partners and drivers. Those transportation providers are covered by commercial insurance policies, in accordance with local and state requirements. <o:p></o:p>

Larry Lubell

Urban Insurance Agency, LLC 800 North Wells Chicago, Il. 60610 / 312-664-8088<o:p></o:p>

11 year(s) ago
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Joel Paprocki, Paprocki Insurance Agency, Inc. and Insure My Food - Vlg O the Hls, TX 78738
Reputation: 271 - Total posts: 26
Ubers policy is secondary to any other insurance, so from that perspective the risk is not reduced on a commercial auto policy.

Ubers design is for drivers to carry personal auto insurance and then promise to step in if it doesnt work out. This is scary because its untested in the courts.

If you try and sell a driver a commercial auto insurance policy they won't be able to afford it even if they want it. Most drivers are clearing minimum wage barely, when you factor depreciation of car, gas, SSN/Medicare tax (15%). MY CPA did a blog about it after driving for a few weekends.







11 year(s) ago
1 Verified Reviews - 5 of 5.0

Larry Lubell, Urban Insurance Agency - Chicago, IL 60610
Reputation: 21 - Total posts: 2
Yes Joel, that's my point, this seems to fall into the cracks between personal and commercial policies, and the whole thing is untested. Uber would say they provide coverage, and at times they actually do, but there are also times where it's unclear. I also have heard of drivers that don't want to report a loss to Uber out of fear they will lose their job: so they try to push it off onto their personal policy.

I DO think these belong on a commercial policy, but perhaps with a discounted rate since some of the time Uber is responsible.
11 year(s) ago
1 Verified Reviews - 5 of 5.0

Joel Paprocki, Paprocki Insurance Agency, Inc. and Insure My Food - Vlg O the Hls, TX 78738
Reputation: 271 - Total posts: 26
FYI, just read in the CPCU Insights magazine that Farmers, USAA, and METlife are going to offer endorsements to the PAP policy to provide coverage alongside the UBER/Lyft policies.

In other words make it work the way it does now, but the PAP will legitimately accept the fact that there is ridesharing going on.

11 year(s) ago
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Greg Washburn, Washburn Insurance Agency - Boulder, CO 80302
Reputation: 58 - Total posts: 7
Farmers does currently offer the rideshare endorsement for Uber/Lyft here in Colorado.
11 year(s) ago
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Joel Paprocki, Paprocki Insurance Agency, Inc. and Insure My Food - Vlg O the Hls, TX 78738
Reputation: 271 - Total posts: 26
@Greg - At this point it is just talk from the insurance companies. Farmers was quoted as saying 25% increase on premium
11 year(s) ago
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Greg Washburn, Washburn Insurance Agency - Boulder, CO 80302
Reputation: 58 - Total posts: 7
It isn't just talk I have added the endorsement to policies. 25% premium increase is close but I think a bit high.
11 year(s) ago
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Joel Paprocki, Paprocki Insurance Agency, Inc. and Insure My Food - Vlg O the Hls, TX 78738
Reputation: 271 - Total posts: 26
@Greg, Sorry I misread your post thinking you said it wasn't available.

Interesting to hear that some companies are adjusting to the meet the demand.
11 year(s) ago
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