Flexible hours and a “guaranteed” first month’s pay of $5000?! It seems too good to be true. It is. Don’t get me wrong, I am huge fan of Uber. I regularly use the taxi service in New York CIty, Washington DC, and even West Chester, PA.
But, and there’s always a but, who is responsible for liability and damage coverage for the driver, their car, and their passengers? Well, that is a very good question. Most insurance companies are trying to determine the answers to those questions too. At this point, several companies have suggested a three-stage approach to coverage. Phase one begins when the driver turns on the Uber app and is looking to pick up a fare. Phase two occurs once the driver receives an invitation on the app to pick up a fare. Phase three starts when the driver picks up the passenger until they exit the car. In phase one, Uber provides no coverage as no transaction has effectively taken place. Unfortunately, your personal auto insurance may not cover you either as most policies exclude livery service. In phase two, Uber offers only $100,000/ $300,000 in bodily injury liability insurance. In phase three, Uber offers $1 Million in coverage to the driver.