Uber and Your Personal Auto Policy
Many people today are looking for a way to make extra money. Uber has offered many of them a solution. This is a very attractive solution for many college students. You work your own hours and you are your own boss. Perfect. What you may not realize is that your personal auto policy specifically excludes the use of your vehicle in this manner. As soon as you accept money to drive someone to a destination your auto policy becomes null and void. The personal auto policy was never intended to cover commercial use or in this case Livery, the transporting of people for hire.
I quickly reviewed Uber's website and learned that they do offer their own third party coverage up to $1,000,000.00 for liability and $50,000.00 for comprehensive and collision coverage, (but you must have comprehensive and collision included in your personal policy to activate it). Makes sense, if you haven't bought the coverage for yourself, they are not going to give you the coverage for free.
I also noticed a diagram that illustrates how Uber's coverage works. When their app is not activated on your phone your personal auto policy covers you. Once the application is activated on your phone and you are on your way to pick someone up Uber's contingent liability coverage will sit on top of your personal policy. Just in case..... Once the customer has entered the vehicle and your personal auto policy becomes null and void their commercial policy kicks in until the ride is completed and the faire has been collected.
I think it is the grey areas between the two policies that concerns me. The place where both companies say that coverage is not offered. Only time and court cases will answer that question.
This article(s) represents the views and opinions of Garrett Parkinson and not the Insurance Companies that he represents or illustrates in his articles.