Last week, Uber agreed to pay $28 million in a lawsuit for misleading the public on the effectiveness of their criminal background checks for drivers. It was over two little words – “industry leading” – they used to describe their vetting process.
Turns out they weren’t. Not “industry leading” that is.
Surprisingly, it was hard for some to see through the ruse. That Uber’s online, name-based background check was somehow superior to taxis’ industry standard of live, in-person, fingerprint verification?
So it shouldn’t surprise anyone to know that Uber is using the same tactic related to insurance. Like a broken record, they describe their insurance as “best in class” and “exceeding industry standards.” Sound familiar?
Recently, an Uber spokesperson in Florida said their insurance was, “best in its class and set a new standard for quality and safety in the transportation industry.”
Erin Simpson, director of communications for Lyft said they go, “far above and beyond what any taxis or limos are doing.”
Press accounts in Florida report that, “Uber’s policy far exceeds state requirements, and provides additional coverage as compared with taxicabs.”
But Uber is not telling you the whole story. They love to point to their $1 million policy while a passenger is in car as proof they “exceed industry standards.”
The problem: That $1 million policy is unavailable for the vast majority of Uber accidents, like when a driver is “between trips“ as Uber calls it.
You see 70% of the time; Uber drivers are getting into accidents without any passengers (i.e. between trips), while performing commercial activity. At least that is the experience of the taxi industry.
But in Florida, taxis are required to carry $250,000 in coverage 24/7, even when there is no passenger.
So what is Uber’s insurance policy when there is no passenger and their drivers are most likely to get into an accident?
First, they say call your personal insurance company. Then, when GEICO denies coverage due to the fact the driver was using a personal vehicle for commercial activity, Uber only offers up to $100,000 in coverage. Provided of course you haven’t violated any of their terms and conditions.
“This hardly exceeds the state minimum of $250,000, much less industry standards in Florida,” said Roger Chapin with Mears Transportation. “A more accurate statement would be that Uber exceeds regulated minimum insurance levels 30 percent of the time.”
Or to borrow a funny quote from the movie Anchorman, “30 percent of the time, Uber’s insurance works every time.”
Reposted from: http://www.floridataxicabassociation.com/site/30-of-the-time-ubers-insurance-works-every-time/