Counter-intuitive actions by some auto insurers.

When I decided that I would like to try ride sharing to gain some extra income, I made sure that I dotted all my i’s and crossed all my t’s. One of my biggest concerns was  insurance. I didn’t want to do anything that would cause me to lose my existing policy. I told them that I was considering driving for Uber and that I wanted to check with them first to see if that would be a violation to the terms of our agreement. They replied that it was fine for me to do so and that I just needed to remember that while my application was logged in that they would not cover any claims. This is the stance that a reasonable and intelligent company would take on the issue.

Think about it a second. My insurer covers me for all of the driving that I do; 365 days a year for 24 hours each day. Now I am telling them that I will be offsetting their risk when I drive since Uber covers insurance coverage while the application is online (at least in Louisiana). Each hour I am online giving passengers a ride is an hour that they do not have to insure me. Yet they collect the same money from me as if they were. That should be an actuary’s dream! If I was a vehicle insurer I would hope that my customers would drive for a ride share company. Not only do I insure them for less hours in a day, but I also will likely have a more careful driver who will be less likely to drive like a maniac when not driving for business purposes because they would want to make sure their car is always ready to deliver passengers.

Yet for some unknown reason that is not based in any sort of common sense or reality, some insurers are dropping Uber drivers from their policies. I have known of a couple recently who were notified that their insurance coverage would be ending.

I have worked within the insurance industry. I have a fairly good knowledge of how it works and how risk is assessed. The decision to drop ride share drivers who are covered by a different insurer while they do their ride share driving is absurd to say the very least. I have debated this topic with several in the insurance industry who have been unable to make a convincing argument as to why I am wrong on this.

Insurers better get with the times. People are deciding to become ride share drivers every day. And it makes no sense to turn away riders who will be covered by a different insurer.

Until that happens, I urge all drivers to make sure they are with an insurer that will cover them adequately and reasonably .