Uber Drivers and the Missouri Personal Auto Policy

We just received our first memo from one of our companies that address the Uber ride-sharing company and how their policy will respond. The Missouri auto policy very clearly excludes insurance coverage for any type of “livery.” Livery is the use of your personal vehicle to transport any goods or people. I’m seriously concerned that the Uber people don’t realize this. So if you have an accident and you have the Uber app, your claim will be denied. No coverage for your vehicle, no liability coverage, no coverage for medical bills. The claim will flat out be denied.

Uber Drivers Get Claims Denied

A frequent Uber user who is also insurance savvy told me that Uber makes it clear they are providing coverage when the application on the phone is up and the drivers are searching for customers and when passengers are in the vehicle. I’m not sure that is true and it might be that the insurance company that Uber is using is not domiciled in the United States which means the insurance will not be guaranteed by the state of Missouri.

In addition to the claim being denied, you can also have your policy non-renewed. As well as all Personal Auto Policies are based on a template policy written by the ISO, Insurance Services Office. The ISO is working on strengthening the exclusion wording on the policy which will further the chances that claims will be denied. ISO is also working on a “buy back” endorsement that will erase the exclusion. I would suspect that most insurance companies will not be offering this endorsement.I’ve had the fortunate opportunity to talk with several Uber customer service employees. They are extremely friendly and helpful. I’m hoping they can get the insurance aspects worked out. Uber would be a really nice service for our community.

***As an update to this blog as of 10/28/16 Uber has been up and running for several months with no issues. In fact, the service seems to be thriving in the city of St. Louis. It’s great to see such a unique and forward thinking company succeed in the city of St. Louis. ***

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