I see no mention of the possibility of a personal auto carrier denying any claim since the person is using their car for commercial purposes. In addition in NJ if you register your car personal, you are not supposed to use it for hire/commercial purposes. The trickle down to the banks that think they are lending money on a “personal; use only” vehicle, and the effect on leases as these operations burn up a car in less than 2 years. I think we’ll see the true effect in the next 24 months as the claims and problems rise.
Greg, you are correct in that the livery exclusion in the standard personal auto policy will mean insurers will (and actually routinely have) denied coverage for accidents in Phase 1 (App On, No match yet). While that gap is pretty clear, it is also clear that both new state laws (in more than a dozen states) will require Phase 1 coverage, but also in the ‘agreement’ Uber alluded to in the story shows that even Uber is working on getting Phase 1 coverage in place. A year from now, I’d imaging, the market will also work this out.
Er, what? Non-Owned Auto carried by Uber protects the driver or the paying passengers? No, it does not. It protects Uber. What a ridiculous assertion. Did no one at this esteemed conference stand up and throw a pie at this guy?
The article refers to Non-Owned Auto Coverage purchased by Uber. Generally Non-Owned Auto protects the “employer” and provides no direct coverage for the employee. I may be missing something here. . . and what about Collision, Medical Payments and Uninsured motorist for the owner of the car.
…love my competition. Non-owned auto does protect the employee if Employee is defined as an “insured,” as most policies would use that in their definition.The Other Insurance Clause would determine primary and contributory. Are the driver’s employees? Will an injured party have to sue in order to seek remedy for bodily injury? A an injured passenger, without their own personal auto insurance that includes Uninsured/Underinsured has a significant risk relying on Uber’s insurance as a primary third party cover. This is why I advise any and all, including my family, to not use UBER or any of these other services until this has had time to play out.
Uber has gone out of its way to assert that the drivers are NOT employees (entitled to benefits or subject to labor laws) but independent contractors only paid by the ride. Courts are sorting that out. Let’s call them what they are – independent subcontractor taxi drivers, using essentially uninsured vehicles, not having the right commercial insurance to protect either themselves or their passengers. Non-Owned auto? No, that’s a scam. This conference should have booed the guy off the stage and the author should have sought out opinions from other attendees. I’m not so sure how fast the “market will work this out.”
If Uber wants independent contractor status for its drivers the afore mentioned drivers cannot be required to accept any certain number or percentage of passenger calls. Also, no part of the driver-passenger relationship may be graded or regulated in any manner. Independent contractors must be,by definition,independent in all material aspects or they are employees. Uber drivers are employees.
How Uber works? Simple. It’s MASS-SCALE CRIMINAL FRAUD.
(I may regret this) How do you see this as fraud?
I see no mention of the possibility of a personal auto carrier denying any claim since the person is using their car for commercial purposes. In addition in NJ if you register your car personal, you are not supposed to use it for hire/commercial purposes. The trickle down to the banks that think they are lending money on a “personal; use only” vehicle, and the effect on leases as these operations burn up a car in less than 2 years. I think we’ll see the true effect in the next 24 months as the claims and problems rise.
Greg, you are correct in that the livery exclusion in the standard personal auto policy will mean insurers will (and actually routinely have) denied coverage for accidents in Phase 1 (App On, No match yet). While that gap is pretty clear, it is also clear that both new state laws (in more than a dozen states) will require Phase 1 coverage, but also in the ‘agreement’ Uber alluded to in the story shows that even Uber is working on getting Phase 1 coverage in place. A year from now, I’d imaging, the market will also work this out.
Er, what? Non-Owned Auto carried by Uber protects the driver or the paying passengers? No, it does not. It protects Uber. What a ridiculous assertion. Did no one at this esteemed conference stand up and throw a pie at this guy?
The article refers to Non-Owned Auto Coverage purchased by Uber. Generally Non-Owned Auto protects the “employer” and provides no direct coverage for the employee. I may be missing something here. . . and what about Collision, Medical Payments and Uninsured motorist for the owner of the car.
…love my competition. Non-owned auto does protect the employee if Employee is defined as an “insured,” as most policies would use that in their definition.The Other Insurance Clause would determine primary and contributory. Are the driver’s employees? Will an injured party have to sue in order to seek remedy for bodily injury? A an injured passenger, without their own personal auto insurance that includes Uninsured/Underinsured has a significant risk relying on Uber’s insurance as a primary third party cover. This is why I advise any and all, including my family, to not use UBER or any of these other services until this has had time to play out.
Uber has gone out of its way to assert that the drivers are NOT employees (entitled to benefits or subject to labor laws) but independent contractors only paid by the ride. Courts are sorting that out. Let’s call them what they are – independent subcontractor taxi drivers, using essentially uninsured vehicles, not having the right commercial insurance to protect either themselves or their passengers. Non-Owned auto? No, that’s a scam. This conference should have booed the guy off the stage and the author should have sought out opinions from other attendees. I’m not so sure how fast the “market will work this out.”
If Uber wants independent contractor status for its drivers the afore mentioned drivers cannot be required to accept any certain number or percentage of passenger calls. Also, no part of the driver-passenger relationship may be graded or regulated in any manner. Independent contractors must be,by definition,independent in all material aspects or they are employees. Uber drivers are employees.