Since there are now over 350K Uber drivers in US, will they be entitled to their private insurance premium reimbursement since it is an operating expense of the driver? The biggest question is are these Uber and Lyft drivers operating legally. Uber and Lyft state on their websites they are not a transportation carrier. They employ no drivers nor own any vehicles. They are a cyberspace app company who receives a referral fee of 20-30% from the driver. They disclaim any and all liability.
Therefore, the drivers use their personal vehicles and their personal insurance to commercially transport the public for compensation. They operate as sole proprietors and are insolvent if they have to pay a claim. The private insurance companies exclude such commercial use for hire. The drivers must have livery permits from the state and city and be vetted by police agencies. They must have 24/7 commercial public auto liability coverage which they do not. Some insurance carriers like Farmers and Geico offer a hybrid type policy to such drivers if they switch their personal insurance to them and allegedly will cover livery operations portal to portal when the apps on on. All these gimmicks are illegal and fraudulent to the public. Such a livery policy can not be legally be issued to a non-permitted driver and vehicle. If the driver commits an accident, causes an injury or death or a criminal incident such as a driver rape, mugging, robbery, or sexual assault, the plaintiff’s attorneys will have a slam dunk in court on everyone. Uber and Lyft turn their head and walks away as their commercial offshore carrier, James River, who only provides a general liability surplus line coverage to the company only. 23 State insurance commissioners have found such coverage invalid. Banks, credit unions, insurance agents and companies are being lied to by the drivers and these app companies for fear of policy cancellations and vehicle repos.
So will the private insurance premiums, vehicle depreciation, maintenance expenses and diminished value be allowed to these non-compliant drivers?
I refer the insurance industry to the current LA Times article “New Uber Driver Contract Won’t affect Drivers in Class Action.” (latimes.com)
Then click on “NEW UBER DRIVER AGREEMENT” highlighted on the second sentence of the article.
Uber states clearly the independent driver is solely responsible for complying with all laws and maintaining proper insurance as required by state and city laws. Since private policies exempt commercial for hire/compensation coverage, each Uber driver must purchase a 24/7 commercial public auto liability policy and submit a copy to Uber. Insurance companies such as Interstate, Philadelphia, Northland, and Lancer provide such livery insurance once the driver is permitted and fully compliant.
Insurance agents and underwriters must ID these drivers and all private insurance carriers must clearly state the exclusion on their policy and the security verification form.
Since there are now over 350K Uber drivers in US, will they be entitled to their private insurance premium reimbursement since it is an operating expense of the driver? The biggest question is are these Uber and Lyft drivers operating legally. Uber and Lyft state on their websites they are not a transportation carrier. They employ no drivers nor own any vehicles. They are a cyberspace app company who receives a referral fee of 20-30% from the driver. They disclaim any and all liability.
Therefore, the drivers use their personal vehicles and their personal insurance to commercially transport the public for compensation. They operate as sole proprietors and are insolvent if they have to pay a claim. The private insurance companies exclude such commercial use for hire. The drivers must have livery permits from the state and city and be vetted by police agencies. They must have 24/7 commercial public auto liability coverage which they do not. Some insurance carriers like Farmers and Geico offer a hybrid type policy to such drivers if they switch their personal insurance to them and allegedly will cover livery operations portal to portal when the apps on on. All these gimmicks are illegal and fraudulent to the public. Such a livery policy can not be legally be issued to a non-permitted driver and vehicle. If the driver commits an accident, causes an injury or death or a criminal incident such as a driver rape, mugging, robbery, or sexual assault, the plaintiff’s attorneys will have a slam dunk in court on everyone. Uber and Lyft turn their head and walks away as their commercial offshore carrier, James River, who only provides a general liability surplus line coverage to the company only. 23 State insurance commissioners have found such coverage invalid. Banks, credit unions, insurance agents and companies are being lied to by the drivers and these app companies for fear of policy cancellations and vehicle repos.
So will the private insurance premiums, vehicle depreciation, maintenance expenses and diminished value be allowed to these non-compliant drivers?
Follow-up comment
I refer the insurance industry to the current LA Times article “New Uber Driver Contract Won’t affect Drivers in Class Action.” (latimes.com)
Then click on “NEW UBER DRIVER AGREEMENT” highlighted on the second sentence of the article.
Uber states clearly the independent driver is solely responsible for complying with all laws and maintaining proper insurance as required by state and city laws. Since private policies exempt commercial for hire/compensation coverage, each Uber driver must purchase a 24/7 commercial public auto liability policy and submit a copy to Uber. Insurance companies such as Interstate, Philadelphia, Northland, and Lancer provide such livery insurance once the driver is permitted and fully compliant.
Insurance agents and underwriters must ID these drivers and all private insurance carriers must clearly state the exclusion on their policy and the security verification form.