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The Risks of Using Uber Taxi Service


Uber Website
The company behind the ridesharing service, Uber, has been all over the news with all kinds of bad publicity.  The most talked about topic regarding Uber in recent days is the alleged crimes committed by Uber drivers.

So who are the Uber drivers?  Is the company doing a sufficient background check on the applicants?  According to a CNET report this week, signing up to be a Uber driver is painless and simple.  In the case of Harry Campbell, it took just 10 minutes to sign up with basic personal information.  And he was out on the road driving customers around in less than eight days.

Uber claims that their background check is one of the most stringent and rigorous one in the industry.  The company now operates in 260 cities in 50 countries.  That's quiet impressive but a small fraction of traditional Taxi service.  Then why are we hearing so much about alleged assaults, rapes and kidnapping by Uber drivers?

Another problem or risk in using Uber service is adequate insurance coverage for the passengers or lack thereof. Take a look at the case of Iglesias, an Uber driver who recently crashed his car while hustling three passengers.  He says during an interview that Uber only requires liability coverage for drivers.  Uber does have a million per incident coverage but the rules on how the coverage works is not straight forward.  Iglesias was initially told by Uber that the damage to his car and medical bills were not going to be covered then they changed the story after a media contacted them for questioning.

Uber drivers often do not tell their auto insurer about using their vehicle for work which can lead to rejected claim or even insurance fraud. The part of the problem is the message the ridesharing company is sending to the new drivers. Uber tells drivers that personal insurance will suffice, but personal insurers surely won't damages arising from commercial activities.

Full commercial insurance can cost up to 10 times as much as personal auto insurance policy.  That could be more than what most Uber drivers earn.

The Risks of Using Uber Taxi Service Reviewed by Brandon Oh on 6:19 PM Rating: 5

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