Uber catches the attention of insurance regulators in Texas
Uber, a personal transportation company that is growing at an astonishing rate, is beginning to attract the attention of state regulators in Texas. The Insurance Council of Texas has voiced its concerns about Uber, noting that 20 other states throughout the U.S. are beginning to look into issues regarding auto insurance coverage and the company’s services. Gaps in auto insurance coverage could create dangerous situations for consumers that make use of Uber’s services.
There are concerns regarding Uber’s policies on auto insurance
Using a mobile application, consumers can order a driver from Uber. All transactions are handled through a credit card that is already on file with Uber, and the interaction between the driver and the passenger are meant to be extremely limited. This may not be happening, however, as Uber does not rigidly enforce such a rule. According to Uber’s policies, unless a consumer uses the company’s mobile application to purchase a service, its auto insurance coverage does not apply.
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Law firms investigate Uber drivers and whether or not they adhere to company’s policies
Some law firms have been using private detectives to investigate whether or not Uber drivers are holding up to the policies of their company. Some of these detectives were able to hail Uber drivers like they would any other cab, and pay for the service using cash. This meant that the detectives were not covered by Uber’s auto insurance policies while they are within one of the company’s vehicles. For state regulators, this is a problematic issue that may need to be resolved quickly.
Some Uber drivers are sidestepping the company’s policies in order to make more money, but this could be a very dire insurance issue
Uber does not encourage its drivers to pick up peopling looking for rides unless they purchase the company’s services through its mobile application. Drivers, however, are somewhat disinclined to give Uber 20% of their fare, especially if they are traveling for short distances. Because Uber’s drivers are largely unsupervised, there are instances where drivers sidestep the company’s policies in order to make more money.