Most of us have heard of UBER, the car service that is available in many cities and growing fast. People use their personal car as a taxi and pick up fares that are assigned to them via the app and the subscriber. Putting aside the perceived risk of being a driver and the often long hours behind the wheel, it appears to be a clever way to supplement your personal income. However….
Let’s consider a few uncertainties about UBER:
- How is your car insured if it becomes damaged while driving for UBER?
- What if the accident is your fault?
- Who defends you if the passenger or people in the other car sue you?
- Who pays for the medical expense of your passengers?
We put the questions to our carriers and the reply was quick and to the point:
- Using your car as a taxi will void your insurance.
- Passengers in your car are not insured for injuries.
- Damage to your car would not be covered if you are using it for as a taxi.
- Hiding the true usage of your car is risky and can result in denial of claim and non-renewal of your insurance.
Not surprisingly, our insurance carriers frown on using your car as a taxi for hire, even for brief stints. There is commercial insurance that you can buy that will properly insure you and your car if you decide to open shop as a livery/cab service. It’s not inexpensive, but it is the proper, legal path to follow.
So, If you want to don that cap and make like a character on the old show “TAXI”, you should be aware that your personal insurance will not protect you. That next cab ride could cost you much more than you think…
Let us know if you need help.