Uber is at the heart of controversy involving auto insurance coverage
Uber is the subject of new auto insurance regulations that may go into effect in the United States, of which it is opposed to. The ride-share company notes that one of its greatest challenges is ensuring that its drivers have the appropriate level of insurance coverage. In recent years, ride-share companies have been criticized for the insurance policies they offer to their drivers, they have also generated some controversy in several states, especially among taxi operators who claim that these services are disregarding the rules that have governed the ride-fare industry for years.
Ride-share services may need to improve their auto insurance policies
There have been concerns that Uber, and companies like it, do not offer adequate auto insurance coverage for their drivers. In the past, ride-share companies have been very secretive about their own insurance policies, but this secrecy has been dismantled in some states. Typically, a ride-share company’s auto insurance coverage does not activate until a driver has a passenger in their vehicle. Before the passenger enters the vehicle, a driver is covered by their own auto insurance policy, which has become a point of concern for some lawmakers.
Lack of appropriate coverage could leave consumers and drivers at risk
Insurance gaps could leave drivers and consumers exposed to financial risks, but Uber may be taking steps to address the issue without actually acknowledging that such a gap exists. Uber has provided its drivers with contingent coverage in case these drivers do encounter problems while traveling to pick up a passenger. Uber has not released any information about these auto insurance policies, however, though it has been ordered to do so by a Canadian judge. The City of Toronto is currently pursuing an injunction against Uber, which may shed some light on the company’s auto insurance policies.
Ride-share companies have influence over the auto insurance industry
The insurance industry is keeping an eye on Uber, as well as other ride-share companies. These organizations are still quite young, but they have experienced explosive growth over the past few years. Their growing influence may have an impact on the auto insurance industry, which could be subject to new regulations that were inspired by ride-share services.