We are constantly bombarding our clients and the public about the importance of uninsured motorist coverage. Well, if you are using UBER, it is even more important. Why, you ask? Because, ostensibly, uber drivers are independent contractors, and therefore, Uber is going to say that they are not liable for their drivers (even though some cities are requiring a $1 million dollar policy as in Tuscaloosa).
The problem could arise if you are being transported by an Uber driver, and the Uber driver is negligent, i.e.: runs a red traffic light. If you are injured, will that Uber driver’s insurance cover you? Will Uber’s insurance cover you? Why take the chance? Most individual policies will not cover the person if they are using their vehicle for work, such as an Uber driver. This was discussed in an al.com article in March which you may read here. So, if the driver is negligent and you sue him/her, you aren’t going to recover much from the driver’s assets most likely (I’m assuming Uber drivers are not Uber wealthy).
If that’s the case, you should have UNINSURED MOTORIST COVERAGE. This is the exact purpose for uninsured motorist coverage. Uninsured motorist coverage is one of the least expensive coverages, but it is vitally necessary in Alabama and in the situation above. We recommend no less than $100,000.00 of uninsured motorist coverage, and if you have more than one car in your home, you can stack up to three on one policy, i.e.: if you own three cars and you insure all three under one policy, you would have $300,000.00 of coverage. The minimum is $25,000.00, and you can reject it in writing, BUT DON’T!!!! We have handled numerous cases over the last twenty-five years where the person only recovered $25,000.00 when they could have recovered much much more had they simply had uninsured motorist coverage on their policy.
Next time you talk to your insurance agent, discuss uninsured motorist coverage. Many people have $100,000.00 liability coverage and $25,000.00 of uninsured motorist coverage. This means you are insuring the public more than you are insuring yourself.
Why would you do that?
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