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Uber: More Insurance Issues from the App

Uber, the socially driven, ride-sharing app, has been all over the news lately. For those who are not familiar, Uber is an application that you download onto your smartphone, and once installed you simply open the app and summon a vehicle. The app knows where you are and advises on time of arrival. You can even follow the vehicle as it makes its way towards you. Payment is by the credit card you installed with the app. No cash changes hands.

Traditional taxi companies are upset and many have tried to block this program. Municipalities and the courts are reviewing several cases. Setting licensing, tax and legal issues aside, we are interested in the insurance implications.

Your car’s insurance coverage and ratings are based upon how you are using your vehicle. Typical questions include whether you drive to work or not, and the length of that drive. While you may not have been asked if you are using your vehicle for ride-sharing such as Uber, we strongly encourage full disclosure. Car pooling with your friends or colleagues every morning is a different risk classification than joining the Uber team.

If you’re thinking of earning some extra income by becoming an Uber driver, we would encourage you to call your insurance broker or company agent.