Just Like Yellow Cab, Uber and Lyft's Limited Insurance Policies Are Begging for a Disaster

Categories: Transportation

LeandreJohnsUber.jpg
Leandre Johns of Uber Dallas
Sooner or later, it's going to happen. A driver for Uber or Lyft is going to crash. People will be injured, property damaged. And then, some poor Dallasite with a neck brace and a stack of medical bills Dallas will discover just how lousy these ride-sharing apps do insurance.

That's what people are discovering right now in San Francisco, where an Uber X driver ran over a 6-year-old girl on New Year's Eve. The company, which boasts a $1 million policy to cover what a driver's insurance won't, says it isn't responsible because the driver was between fares and didn't have a passenger in the backseat.

The question of insurance for ride-sharing services has largely been glossed over in bashing of Yellow Cab for illegally cheaping out on its own coverage. But it's something that will have to be addressed, either when the Dallas City Council passes new regulations or when Uber gets taken to court.

Uber's standard line, trotted out in the recent series of public hearings at City Hall, is that it contracts with limo companies that carry commercial insurance that complies with state and local regulations.

That may be true for Uber's black-car service, but it's not for the lower-rent Uber X or Lyft. Those services only require only that drivers have basic liability insurance, the same type of policy as your average commuter has which, generally speaking, explicitly prohibits drivers from carrying passengers for pay.

We reached out to Uber and Lyft and haven't heard back. We spoke with one Uber X driver whose insurance company dropped him when he told them he planned to start driving for the service. He switched to a different company, studiously avoiding mentioning that he'd be using his car as a taxi.

"It's kinda like don't ask, don't tell with the insurance company," he says.

What happens when he gets in a wreck and his insurance company finds out he was driving for Uber depends on the insurance company? Maybe they'll refuse to pay. Maybe they'll pay it, then cancel his policy. Whatever the case, the outcome will probably not be good for him, and history suggests that Uber and Lyft won't be eager to chip in.

There's a reason cab companies are required to carry $500,000 insurance policies, says Kelly Hollingsworth, who has long represented Dallas' smaller cab companies against Yellow Cab's near monopoly. It's to protect the public who ride in cabs or get hit by them. That Uber X and Lyft drivers are essentially operating without legit insurance policies should be a serious concern, he says.

"I thought someone would have to go some to outdo Jack Bewley and the crap he was doing on taxi cabs [and insurance]." Uber, he says, has done just that.

Send your story tips to the author, Eric Nicholson.


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93 comments
duberuber
duberuber

Uber is not worried about this insurance angle. They have enough money in the coffers to settle these claims. In other words they are self insuring without regulation. But guesses are they are forming their own insurance company.

whocareswhatithink
whocareswhatithink

My computer wont refresh fast enough - which is good, because I cant read this fast

RideShare1
RideShare1

This is a total BS article.  Uber and Lyft drivers are Independent Contractors. When they aren't in a ride, they are just like any other Citizen driving on the streets.  Whatever that Uber driver did or didn't do, which resulted in him hitting a pedestrian, is his/her sole responsibility.  When Uber or Lyft passengers are in a ride, they are covered with over 1 Million Dollars of coverage.  


There is a reason for this.... CABBIES suck!  They extort people, are discriminatory and rude.  THANK GOD for LYFT!  Uber tends to hire cab drivers so its hit and miss on service there.  Lyft has a more fined tuned approach... they people that are friendly and actually like people!  


But here's the deal... GONE are the days of calling shitty dispatch centers and waiting 30-45 minutes for a cab that might not come.  Now, its 3-5 minutes!  10 min if its a super busy weekend night.  I use both Lyft and Uber, all depends on the rates at the time (Uber surges the rate) and also depending on how far the closest car is.


Try them both for FREE.  For UBER use code: 84COM and get $20 free.  For LYFT, use code: 8NH6GY for $25 free.  You'll be hooked for sure.  Nothing beats a safer, friendlier driver in a nice cozy clean car.  

FreeTheWeed
FreeTheWeed

WOW! It looks like Yellow Cab taxis are a far greater menace to society than underinsured ride sharing services.

DonkeyHotay
DonkeyHotay topcommenter

 Those services only require only that drivers have basic liability insurance, the same type of policy as your average commuter has which, generally speaking, explicitly prohibits drivers from carrying passengers for pay.


Simple solution -- eliminate the Insurance Company exclusion and require them to cover ALL incidents. 


They cover DRUNK drivers, so why exclude sober drivers who receive $ for rides?


They cover Car Pooling drivers, so what difference does it make if the pool kicks in $$ for

expenses?


Exchanging $$ does not increase the rate of accidents, nor does it increase the damage done in accidents.







DonkeyHotay
DonkeyHotay topcommenter


                *** Taxi Driver Charged with RAPE! ***


A preliminary hearing for Orlando Bruce Bosley took place on Wednesday, May 9th in Santa Ana. Bosley is accused of picking up 45 year old Jane Doe in a taxicab and later raping her in her mother’s home.


Jane Doe called for the cab after drinks in Sunset Beach. She instructed the cab driver to take her to her mother’s home in Seal Beach, where she was staying while her mother was out of town.


As Jane Doe was looking into her purse to find the cab fair, Bosley is accused of punching her in the face and knocking her out temporarily. He is accused of then bringing her into her mother’s home, where he allegedly raped her as she went in and out of consciousness.


 http://www.examiner.com/article/taxi-driver-accused-of-rape

DonkeyHotay
DonkeyHotay topcommenter


          *** Taxi Driver Shoots Cop During Traffic Stop! ***


The officer that was shot by a Yellow Cab taxi driver during a traffic stop for a minor offense on Wednesday is in critical condition, the Alexandria Police Department said.


The officer was found on the ground and motorcycle on its side before he was medevaced to the hospital, reports WUSA 9's Surae Chinn. Theofficer suffered life threatening injuries, say officials.

DonkeyHotay
DonkeyHotay topcommenter

                 *** Yellow Cab Driver Arrested for Excessive DUI ***

A local taxi driver is behind bars after police say he hit two parked cars while driving his cab. 

Diane Brush with the Pocatello Police Department says officers responded to the 300 block of Franklin around 2 Thursday morning after residents reported hearing what sounded like a car crash. 

http://www.kpvi.com/mostpopular/story/Local-Cab-Driver-Arrested-for-Excessive-DUI/oVXQruQ9BUe8l7jABe1F_g.cspx

stew21451
stew21451

Impound, fines threatened

According to the cease-and-desist notices mailed to each company, the commission has the right to impound the companies' cars and impose fines of up to $5,000 a day, county jail sentences of up to three months, or both. Each day of violation is a separate misdemeanor offense, and Lindh said it's possible that if the companies don't comply soon, they could be fined for months of violations.

http://www.sfgate.com/bayarea/article/Putting-brakes-on-ride-sharing-apps-3927193.php

DonkeyHotay
DonkeyHotay topcommenter


              *** Nashville Yellow Cab Driver Arrested For Rape ***


http://www.newschannel5.com/story/12237342/nashville-cab-driver-arrested-for-rape


NASHVILLE, Tenn. - Metro police have arrested 26-year-old Abdiwahab Kheir. He is accused of raping a Fort Campbell soldier in February. 


Police said the cab driver picked up the 21 year old woman in downtown Nashville. 


Officials said the woman had become separated from friends while visiting a nightclub. She hailed a cab to take her to Fort Campbell. 


Kheir instead allegedly drove her to Yellow Cab Company headquarters where he raped her. 

DonkeyHotay
DonkeyHotay topcommenter


          *** Yellow Cab Driver Arrested for RAPE! ***


http://www.adn.com/2011/08/22/2026059/cab-driver-charged-with-sexual.html


An Alaska Yellow Cab driver arrested on a charge of raping a woman Sunday afternoon at a cab-service lot spent just hours in jail before being released on $5,000 bail, police said.


Police say they arrested Chidiebere Nwokorie, 43, of Anchorage Sunday on several charges including first-degree sexual assault.


He remains licensed to drive a cab. His bail conditions do not restrict him from doing so, though he was forbidden to have any contact with the victim, police said.


An advocate for victims of sexual assault on Monday called the bail amount and lack of a requirement for a third party to watch over him "absurd."

pak152
pak152

dang! i've run out of popcorn

pak152
pak152

wow whoever stew21451 for is shilling is sure getting their money's worth

DonkeyHotay
DonkeyHotay topcommenter

    ### Taxi Driver Arrested After Shooting Non-Paying Customer ###

Brookhaven Police have arrested a taxi driver after he allegedly shot and injured a patron who left his cab without paying, 
according to CBS Atlanta.

The driver, Dan Jones, 65, starting shooting after two men exited his vehicle and ran without paying. One of the men suffered non-life threatening injuries.

DonkeyHotay
DonkeyHotay topcommenter

*** Taxi cab driver arrested for shooting ex-girlfriend's new boyfriend ***


LAS CRUCES — One Las Cruces taxi cab driver is arrested after he shot his ex-girlfriend's boyfriend. 

Darren Henry, 47, drove to his ex-girlfriend's home last Friday around 10:30 p.m.

He got into an argument with her when the woman's new boyfriend intervened.

Henry fled the scene but was quickly located.

He was arrested, charged with one count each of aggravated battery with a deadly weapon, aggravated assault with a deadly weapon against a household member, aggravated assault with a deadly weapon and tampering with evidence.

DonkeyHotay
DonkeyHotay topcommenter

          *** Cabdriver arrested in 6 serial killings ***


A Jacksonville cabdriver was arrested yesterday and charged in the slayings of five Jacksonville women whose bodies were found over a two-month period, police said.

Paul Durousseau, 32, also is charged with the 1997 slaying of a Columbus, Ga., woman. The Jacksonville women were strangled from Dec. 19 to Feb. 5, police said.

Family members attending a news conference yesterday wept, at times uncontrollably, as they listened to Sheriff Nat Glover detail the fate of their loved ones at the hands of a man police labeled a serial killer.

"Praise God," said Winifred Jefferson, whose daughter Jovanna was killed this year. "It helps me to know they charged him with murder. That helps me a great deal."

All of the women, who police say were chosen at random, were young, black and single. Some of them, barely old enough to be considered adults, were bound and strangled, their naked bodies dumped like trash just off the roadway. Two were left in their homes to be discovered by family or friends. One victim was left decomposing in her home as her two small children crawled around her body.


http://jacksonville.com/tu-online/stories/061803/met_12819930.shtml



DonkeyHotay
DonkeyHotay topcommenter


              *** Taxi Driver Arrested in Rape ***


Cops arrested a Taxi Driver yesterday for allegedly raping a young passenger in his taxi at knifepoint after she left a Williamsburg bar.

Gurmeet Singh, 40, picked up the 26-year-old woman on May 6, and she asked to be taken to her Manhattan building, cops said.

After the intoxicated woman fell asleep, Singh, pulled over, bound the victim’s hands with a scarf and began raping her, cops said. 


http://nypost.com/2012/01/10/cabdriver-busted-in-rape/

stew21451
stew21451

For several hours on Saturday, Uber was maybe the most hated company in America. Some of the year's most atrocious weather dumped across the Northeast, and the transit company of the future hit customers with the worst price gouging we've ever seen—it would cost over a hundred bucks just to drive down the block. Get used to it.

valleywag.gawker

stew21451
stew21451

Lyft driver strikes elderly woman in S.F. - SFGate

www.sfgate.com/.../Lyft-driver-strikes-elderly-woman-in-S-F-5154019.php

Jan 18, 2014 ... (01-17) 17:44 PST SAN FRANCISCO -- A Lyft driver struck an elderly ... a reckless driving arrest from 10 years before would mostly likely not be ...

stew21451
stew21451

Uber driver accused of assault passed - PandoDaily

pando.com/.../exclusive-uber-driver-accused-of-assault-passed-zero-toleranc...

Jan 6, 2014 ... Last month, Pando reported that an Uber driver in San Francisco had been accused of verbally and physically assaulting a passenger, James ...

DonkeyHotay
DonkeyHotay topcommenter

*** Yellow Cab driver charged in fatal crash that killed 4 ***


FLOYD COUNTY, Ind. (-) -- The only survivor of a fiery crash that killed four people near Horseshoe Casino is being charged with four counts of reckless homicide.
 

Late Tuesday afternoon, U.S. Marshals arrested 32-year-old Charles Michael Barlow at his employer, Yellow Cab of Louisville. He was booked into Metro Corrections Tuesday afternoon on fugitive charges out of Indiana.  He is expected to be arraigned in Jefferson District Court Wednesday morning at 9 a.m.

Court documents reveal that Barlow admits he drank alcohol before the crash along Highway 111 in Floyd County, Indiana.

A police officer also says Barlow smelled of alcohol, but that's not what led to these charges, as Floyd County Prosecutor Keith Henderson explains: "The basis for these charges to this point are speed.  The reconstructionist has determined that the cab driven by Mr. Barlow was traveling in excess of 80 miles per hour.


DonkeyHotay
DonkeyHotay topcommenter

The average driver/passenger/pedestrian is FAR MORE likely to get hit, injured or killed by a PASSENGER vehicle that only carries the minimum passenger vehicle insurance coverage.


Being in a Car Pool or Ride Sharing vehicle doesn't increase the chances of accident, nor does it increase the damage or injury received. 


So either RAISE the INSURANCE minimums for ALL vehicles, or let consenting adults make their own free will choices of which vehicle(s) to ride in or not.



ThePosterFormerlyKnownasPaul
ThePosterFormerlyKnownasPaul topcommenter

Would the liability insurance required of  cabs cover a loss if no passenger were in the cab; and, the cab was not on its way to pick up a passenger?

cornydog
cornydog

This whole uber debate confounds me.  They facilitate rides between customers and drivers for a competitive price.  That's all that they do.


Why should they be on the hook for an independent driver with his own insurance when he gets in an accident on his own time?


Seriously .. why does this company get talked about so much here?  


These articles are constantly comparing uber to yellow cab.  uber is not a cab company.  They do not own any cars.  They do not employ any drivers.  


It is nice that uber has supplemental insurance but who cares?  It is up to the driver or his company to be properly insured.  If uber is not verifying that the drivers that they dispatch are properly insured, that is a problem that should be resolved immediately.  IMO .. that's really the only potential issue.


Otherwise .. you are doing your readers a disservice with these comparison articles. Stop using petty quotes from butt-hurt cab guys .. it confuses people and associates uber with yellow cab, which is like associating the Bush library with your local DPL.


stew21451
stew21451

uber/lyft/sidecar headed for  RICO indictment

DonkeyHotay
DonkeyHotay topcommenter

@RideShare1  


      *** Boycott the Greedy Big $$ Taxi Cartels !! ***


Support your local independent private ride sharing service!



DonkeyHotay
DonkeyHotay topcommenter


Does Yellow Cab carry sufficient RAPE INSURANCE for their customers?


DonkeyHotay
DonkeyHotay topcommenter

@stew21451  


                *** Over 50 NYC Taxi Drivers Arrested ***


More than 50 New York City taxi drivers were being arrested Wednesday morning on charges of ripping off riders, law enforcement officials said.


The arrests come weeks after Taxi and Limousine Commission officials said many drivers had been charging higher out-of-town rates on their meters for rides within city limits.


http://www.yellowcabnyctaxi.com/nyc-taxi/50-city-taxi-drivers-arrested-morning

stew21451
stew21451

a taxi is insured 24-7 even if it is standing still with no driver or passenger aboard lol

bifftannen
bifftannen

@cornydog Using euphemisms doesn't change what they do.


We're not at war in Vietnam, and we don't have troops there. We just have military advisers.

RTGolden1
RTGolden1 topcommenter

@stew21451 Having Boston cab accuse them of RICO violations in a filing is not the same as "headed for a RICO indictment".

stew21451
stew21451

I wouldnt have a clue where do you get your data here?

DonkeyHotay
DonkeyHotay topcommenter

@stew21451  ... so the 254,000,000 passenger vehicles in the U$A are under-insured and unsafe for ANYONE to ride in?


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