Uber Will Offer Contingent Comp & Collision
Agents can breathe a sigh of relief for now when advising their customers about driving for Uber. We have been informed by Uber’s Senior Risk Manager for Insurance and Public Policy that the company will provide contingent comp and collision to their drivers who already carry that coverage on their personal auto policies. It is intended to replace the comp & collision under the personal auto policy that is excluded because of the ridesharing activity. The Uber policy will have a $1,000 deductible and will be effective when an eligible driver accepts a ride request from a rider, while on the way to pick up the rider, and through the conclusion of the ride until the rider is dropped off. It’s written on a standard ISO policy form for physical damage that is endorsed to specify that it provides coverage as described above. We expect similar coverage from Lyft based on their activities in other states, but have not confirmed yet.
A gray area still remains. What is the status of coverage when the driver turns on the app but has not accepted a ride request yet? Will the personal auto policy exclude coverage? Or does the exclusion kick in when a ride request is accepted? It remains to be seen how carriers will address this with endorsements or other means. ISO is in the process of filing their ridesharing endorsements, which provide coverage when the app is turned on, in New York, and as we have previously reported, the tight time frame is likely to present a problem. Ridesharing will be available in New York on June 29th.
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