Insurance Quandary for Uber and Lyft App Drivers

If you’re someone who likes to carpool and more importantly, likes being the individual who is actually driving the car, have you ever considered working for a driving service like Lyft? If you’re not familiar with what Lyft is, basically it’s a company hires drivers to pick up passengers via a Lyft iPhone or Android app. Then once the driver has taken the passenger to their requested destination, the passenger is asked to make a donation through the app. As a result of the service, Lyft keeps 20 percent of the money while the driver is able to keep 80 percent. Plus, you can set your own business hours.

In order to be eligible for this kind of driving opportunity, you must be 23 years of age or older, have a four-door vehicle, a clean driving record (and background check), pass a phone and in-person interview—and of course, you must like meeting new people.

Does it sound like it’s too good to be true? Well, for the most part, it’s pretty a cut-and-dried reality. However, there is one thing that has become an issue over the past several months: the insurance coverage. Although Lyft states on the front page of their website that they have enough car insurance to take care of approximately $1,000,000 worth of damage (that’s per occurrence, by the way), there have actually be several reports of Lyft drivers experiencing accidents that their insurance company has refused to pay for. This resulted in them having to deal with out-of-pocket expenses for repairs.

Interestingly enough, Lyft is not the only service that reportedly has had this issue. Uber is another. Just last New Year’s Eve, an UberX driver hit a six-year-old little girl and killed her. However, Uber is refusing to pay for any liability stating that the driver did not have a passenger in their car at the time while the driver is citing that the accident was caused because they were distracted by the app as they were looking for new fares.

What makes this issue even more complex is there are some states that require you to have a commercial license if you are going to use your car for public use. So say for instance that you live in Denver and you’re online looking for a Colorado car insurance quote. If you’re thinking about working for Uber or Lyft, one of the things that you should ask the insurance agent is if they will cover you if you happen to drive for one of those services. That way, you won’t find yourself in a financial bind if you do decide to work for them, experience an accident and end up being refused by our insurance company because nothing on your policy states that they will cover you.

So, what are all of the people who are already in a bind doing about the insurance gaps between the car services and their insurance companies? Currently, there has been no clear solution. And that within itself may serve as a word of caution. Lyft and Uber are on to something pretty awesome with their concept, but you might want to hold off on being a driver for them until they adjust their fine print. And until speak directly with your insurance agent too.

Related posts:

  1. Cisco Says Global Internet Traffic Will Triple by 2017
  2. How to Choose an SEO-Friendly Web Hosting Service
  3. Top 5 Features to Look for in a Reliable Web Hosting Service
  4. Top 5 Internet Marketing Tips for Healthcare Professionals
  5. 4 Keys to Delivering a Consistent Product
Both comments and pings are currently closed.

Comments are closed.