PiP is perfect vehicle for my new side job

Thanks for your input. As a career chauffeur and corporate executive security driver, I have been very interested in just how these services work out for the drivers. I'm mostly retired, but still drive for a few select clients in their own vehicles, under their insurance. I bill them $30 per hour with a 4 hour minimum. I get a 1099 from each of them, and deduct my business related mileage, etc. I really appreciate hearing from someone who has been doing this for Uber for long enough to understand the real costs and benefits.

 

Some of it isn't true for Uber either. For example, it is true there is a $1 per ride fee, however Uber adds $1 to the fare total before they deduct the $1. So it is paid by the rider, not the driver.
However, I suspect much of it is.
Part of the difficulty is insurance companies are still trying to figure out how to handle these drivers, and Uber and Lyft are trying to figure out how to cover drivers without being taken advantage of.

 

I was thinking about signing up to drive for Uber part time since I am already paying for my Prius and am generally pretty free on weekends and evenings, but I'm concerned about being "found out" by my insurance company (Mercury) and getting kicked off my plan. Also it sounds like it will be a pain come around tax season.

 

And if you don't tell your insurance company, then you run the risk of your insurance company refusing to cover a claim. If the Uber/Lyft coverage does not kick in for whatever, then you could be financially ruined when you are sued for $10 million. It just seems like a very risky proposition.

 

So are there any insurance company right now that acknowledges Uber/Lyft as legitimate and acceptable or is it still a relatively gray area? If no insurance truly accepts it, then it might be a bit too much risk based to be worth it for me.

 

If you haven't asked them, why assume trouble?
Ask them straight out, show them the Uber or Lyft policy and ask how the coverage would work.
If it is a hassle, drop the idea, or ask around with other insurance companies.

 

Ok, say your policy covers you for its limits (or not at all) and Lyft's or Uber's excess policy then covers the next one million. But what if you have the misfortune to hit and kill a person (like happened to the Uber driver on New Year's Eve in San Francisco,) and the jury awards the plaintiffs two million? Or five million? Your personal assets are at risk. Seems like these companies could pony up for a minimum ten million dollar coverage to protect themselves and the drivers. They're the "deep pockets" defendants, so they could really get hit hard for damages. And this excess coverage doesn't cover the driver or his vehicle, right? Maybe folks in Nebraska aren't as litigious and juries aren't as generous as we are in California.

 

Not sure how old you are, but what I've found is that the older you are, the more you'll lean towards Rogerv's way of thinking. It's not about being paralyzed, it's about being smart enough not to lose your accumulated assets to a low reward potential high risk job. However that's what makes the world tick, and younger kids with minimal assets may be happy to lie to their insurance company. (Certainly not implying that this is true in your case)
I'll also state that most of my experiences with regular Taxi services have been less than stellar. Most of these guys (not all) drive like morons. My last experience in midtown Atlanta had a taxi driver going the wrong way down the street and then making up a ridiculous rate off the meter. Just about everyone started using Uber after that incident, on that trip........ So it's certainly a step in the right direction, time will sort it out.

 

What's the difference between being on the Uber/Lyft policy vs not at all? At least with them you have the $1 million policy, which is significantly more than most have I believe. You're screwed either way if something that unfortunate happens.

 

That's just my point. Suppose Lyft does not pay, since you were on the way to pick up a fare, but hadn't picked them up yet when you have the accident. Isn't that how it works for Lyft (or Uber, sorry I don't recall which), that their insurance only covers you while the passenger is in your car, so they would not cover you in this case? But your personal insurance company would say that you were operating the car commercially, and deny your claim. This does not seem to be such a hypothetical, far-fetched scenario. Am I not understanding something here??

 

Correct Charles, you are not understanding something here.
According to the information at Uber's web site and insurance, the Uber insurance covers you while you are carrying someone OR if you are both logged in and your own insurance doesn't cover you.

As for what if someone sues for 10 Million, that is always a risk. I would argue that such an award is unlikely to happen unless the driver is being negligent or breaking the law, however I don't know the specifics of the case.
I would also mention you will have more legal assistance from Uber's insurance as they have a lot riding on the decision. Has the case been appealed?

 

I would urge people not to do this unless they are prepared to be dropped from their insurance, whether they choose to drive for these services or not. This has happened regularly to people who bring up track-day 'driver's education' schools or autocross. It's best to have nothing of the sort on your record.

I think there is no question that there is a lot of room for grey in the liability questions, and that, given a big claim, I would not count on their insurance to be 'on your side.' They will act like any other insurance and do everything they can to minimize their own liability.

 

I just don't understand that attitude.
No one is suggesting anyone do this on the down low.
Talk to your insurance agent, ask them if this is a problem.

As you said this is a new gray area. I would never recommend entering into any gray area without contacting your insurance company or anyone else that might be involved in it.

If you have an insurance company that is going to drop you because you asked a question, you need a new insurance company.

 

Just relaying this information which has become somewhat well known over the years from people taking their cars on track (another legal grey area). Just because it seems reasonable to us to be upfront about something we 'might' do, doesn't mean your insurance company will necessarily see it that way.

 

Obviously it would be foolish to ask AFTER the fact.
If there is a gray area you should always ask BEFORE the activity.
Have you ever heard of someone loosing their insurance because they asked if they would be covered under certain circumstances?