Insurance companies are very adept at finding loopholes in their own policies that allow them to deny coverage. Most insurance policies require the driver to inform them if they are using the vehicle “for hire.” If an Uber driver injures another and has not informed their insurer that the vehicle is being used “for hire,” the insurance company is within their rights to deny coverage. Uber claims to carry an insurance policy designed to cover these types of incidents. However, there are limitations and exceptions to these types of policies as well.
Uber may be a cheaper alternative to using the traditional “taxi” service. Likewise, Uber is certainly a much better alternative if you have had a few drinks. However, Uber may have a legal loophole if one of their drivers injures someone, and that is what concerns me. The attorneys at the LaBovick Law Group focus their practices on holding those who injure others accountable. For Uber to be able to claim that drivers are not employees and not “under their control” is scary. Uber currently does not properly vet and screen its drivers, and thus may be creating a dangerous situation for those using the app. Time will tell whether the local County governments step up and try to regulate Uber and their drivers much like they regulate local traditional “taxi” companies. If you have been injured by an Uber driver, call the LaBovick Law Group for a free consultation.