The rideshare company Uber often takes a defensive stance against claims and complaints. With a new ad campaign, they've chosen to take the role of the aggressor instead.
Citing exploitation by personal injury attorneys and unreasonable insurance rates, Uber is launching a media onslaught designed to effect change through reform and legislation. It's also donating to organizations that align with Uber's goals, such as lowering minimum liability coverage for rideshare drivers.
Casting themselves as victims of overzealous state insurance requirements, personal injury lawyers, and a "shady network of chiropractors, pain management doctors, and third-party lenders," is an interesting tack to take for a company that catches its fair share of criticism for their business practices. Will their ads in political outlets and social media networks help them win the hearts and minds (and rides) of customers, legislators, and independent contractors?
You're Covered Unless You're Not Covered
According to Uber, as much as 32% of a passenger's fare is earmarked for insurance payments in certain states. It also claims that liability coverage in California for transportation network companies (TNCs) like Uber is more than 30 times the rate charged on personal driver policies.
TNCs and their drivers must carry commercial insurance to operate legally. The independent contractors who drive for Uber must have their own rideshare insurance and personal auto liability insurance that doesn't cover business use. The system is broken into three different classifications referred to as periods.
The first coverage period is when an Uber driver is available for a ride through Uber's app and is waiting for a rideshare request. During this stage, Uber provides liability coverage of $50,000 for bodily injury per person, $100,000 coverage per accident, and $25,000 for damages. Uber does not cover comprehensive or collision in this period.
The second coverage period happens when the driver accepts a rideshare request and travels to pick up the passenger. The third period is the duration of the passenger being in the vehicle. There's a good deal of coverage overlap for these periods. If in a covered accident for either the second or third period, Uber provides $1 million in liability coverage.
Once the rideshare begins, both the driver and the passenger are covered for bodily injury if the other driver is at fault and either uninsured or underinsured. Uber also provides comprehensive and collision coverage for accidents during a rideshare, but it's conditional. The driver must have their own comprehensive/collision coverage on the vehicle in a personal policy, and there's a deductible of $2,500.
Touting improved safety records and the necessity of the industry, Uber's campaign is focused on getting certain states to reduce their "outsized" insurance requirements for rideshares. Claiming that their insurance costs have gone up 50% over the past three years, the company intends to press ads in states with the highest costs.
Related Resources
- Automobile Insurance Policy Coverage (FindLaw's Car Accident Law)
- Do I Need an LLC To Drive for Uber or Lyft? (FindLaw's Starting a Business)
- Can I Sue a Rideshare Company as a Driver on the Road? (FindLaw's Filing a Lawsuit)
