The latest way to get around a major city is by using a new method of transportation known as “Uber.” Many people new to Uber think it is simply a brilliant way to order a convenient and efficient ride that is safer than calling a cab company. Simply enter your location and the size vehicle you need – with the click of a button, your car is on its way. Great, right? A lot of people may think so until they investigate Uber’s policy on business auto insurance – or lack thereof – and realize this could be a nightmare waiting to happen.

What is Uber?

For those unfamiliar, Uber is an internet application where you can order a ride with a few different options, such as luxury vehicles, SUV’s, and even taxis. The concern is with the more economical option known as “Uber X.”

What is Uber X?

Uber X is typically an individual using their personal vehicle to offer rides to Uber users. This may sound harmless; however, the fine print regarding Uber’s policy concerning business auto insurance states that Uber X drivers must carry personal auto coverage on their vehicles. While Uber claims their commercial auto policy is primary to a driver’s personal policy while the driver is on duty, the situation creates a very hazy line of when the commercial coverage will actually apply.

What About Uber X Insurance Coverage?

Uber’s policy regarding auto insurance coverage is worrisome for a few reasons. First of all, a driver’s personal auto insurance will not pay for an incident that occurs while they are using their vehicle to transport passengers in exchange for payment; such usage requires business auto insurance. Secondly, a passenger is responsible for obtaining insurance information in the event of an accident, which may be difficult to obtain from Uber. Additionally, there is the issue of what happens when an Uber X driver’s insurance limits are not high enough to pay for medical bills and other damage.

Information For All Drivers – Including Uber X Drivers

This information is not intended to talk poorly about Uber X drivers. Rather, it is something to think about if a person is currently employed by Uber or contemplating a part-time gig as an Uber X driver. Unless business auto insurance is carried by a driver, that person’s personal auto insurance will not cover the loss as this type of usage is specifically excluded on the Texas Automobile Policy. This means that no part of a driver’s personal auto insurance policy will cover a loss – not Medical Payments Coverage, not Collision, and especially not Liability Coverage. So what may have started out as a good way to earn some extra cash can suddenly turn into a complete nightmare and financial burden. Without business auto insurance, a part-time Uber X driver could be exposing themselves to a huge financial loss.

This information is also true for any vehicle used for business purposes, specially whenever using the vehicle for compensatory business purposes. If an incident occurs involving a personal vehicle being used for a business purpose, the company’s business auto insurance coverage would be primary to cover both the driver and any passengers in an employee’s auto. However, once an insurance company becomes aware that a driver is using their personal vehicle for business purposes, the policy may well be canceled. The best thing to do when using a personal vehicle for business use is to secure protection with proper business auto insurance.

While Uber is certainly a great way to get around, it could be potentially hazardous without appropriate business auto insurance. If you are currently an Uber X driver or thinking of joining Uber as a part-time driver, be sure you are protected with business auto insurance. In the Bryan/College Station Texas area, call the insurance professionals at Jones & Associates today to discover the affordability of business auto insurance!

Need Business Auto Insurance in College Station TX?

Jones & Associates Can Meet Your Business Auto Insurance Needs!

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