Do Uber Riders in SC Have Insurance?

car insurance Myrtle BeachDo you use Uber? Are you aware that your driver, who’s basically operating a for-hire business using his car, is not regarded as a conventional employee of Uber? Since this is a livery business, the auto policy of the Uber driver is no longer reliable once he clocks in on the Uber app. We have heard a lot of reports that there are some insurance companies that rejected personal auto claims, which were not related to ridesharing following the discovery that the vehicle was utilized outside the policy’s usage clause. The question now is who covers you? It is a frightening question, right? Provided below are some important things that you should know.

In 2017, ridesharing and its insurance coverage have been one of the most controversial topics not only for the transportation industry but also for South Carolina’s personal insurance sector. As a matter of fact, you will find only a few insurance companies that provide a real coverage for ridesharing. A ridesharing policy is considered as a mix of a commercial policy and a personal policy. In locations were ridesharing policies are unavailable, the coverage gaps that can’t be provided by a typical personal auto insurance coverage should be addressed by a commercial auto policy.

In case of a ridesharing accident, the underlying ridesharing policy of the driver is regarded as the primary and will be set in place first. Once the coverage limits have been exhausted, the commercial auto policy of Uber will come into effect for as much as $1 million in liability for each incident. This includes UM/UIM Motorist coverage. Keep in mind that the coverage limit of Uber is the maximum liability coverage you can possibly have for a conventional personal auto insurance Myrtle Beach without purchasing other similar insurance coverage. Well, then that is actually good news for consumers like you. Even though the Uber driver just has a basic insurance coverage, Uber still provides you with some sort of coverage.

If you check Uber’s website, it is stated that their policy comes first over any other personal auto insurance coverage when their drivers are on the job. This means that Uber only requires their drivers to have proof of their personal auto insurance coverage. You should remember that even when a personal auto insurance coverage is deemed as acceptable to Uber, the exposure to the ridesharing business might not be acceptable to the driver’s insurer. Another warning that you should heed, especially those using ridesharing outside of the Uber app in hopes of paying a lower fare, you are taking a totally uninsured ride!

Indeed, Uber has made some changes in an effort to fill the insurance gaps particularly the riders. However, there are other areas left uncovered. The comprehensive, collision, as well as medical payment coverage,  fall to the minimum insurance or in some cases,  become totally nonexistent once the rider completes the ride. Therefore, the burden of correct insurance coverage for all of these gaps will fall on the driver himself and not Uber. To make the situation more complicated, a new car that may be financed or leased in South Carolina may not be allowed to be used for ridesharing. In fact, some finance companies are already excluding ridesharing in their lease or loan contracts.

A real ridesharing auto policy should be must be set in place to make sure that you, the driver, the car, as well as the other motorists,  are insured. In case one isn’t offered in your area, then a commercial insurance coverage may be needed. Apart from that, South Carolina will ask you to get a commercial auto insurance coverage if a car needs a commercial driver’s license. One of the most important thing that ridesharing drivers must keep in mind is for them to keep an open line of communication with their insurer especially about things like how they use their vehicle. With the help of an expert and independent agent to determine all the auto insurance policy risks for riders and drivers can help a lot in terms of keeping everyone safe.

At this point, you now have a good idea of the risks. If you are confident enough, the next time to use Uber, you might consider asking the driver if he bought an extra insurance or verified with his insurer that his traditional personal insurance coverage is still reliable. If you do ask these questions, you will surely be surprised at the answers you will get.

Call MB Insurance Services today to know more about personal or commercial auto insurance policies.

MB Insurance Services
Myrtle Beach, SC 29577