Matthew B. Troutman
Here is why you should avoid using an Uber Service- Ever!
Uber transportation is popular in today's world. A lot people use uber services, but in doing so I am sure they do not realize that they are forfeiting significant insurance coverages in the event of an accident. Auto insurance policies on the Uber vehicle have liability coverage, normally, but it is limited to the minimum required in Kentucky- $25,000.00 for one injury claim. If the uber vehicle purchased $300,000.00 in liability coverage for their vehicle, they will not have that available to them if they cause an accident and injure one of their customers. Their insurance policy will have a provision that reduces the liability limits from $300,000.00 to the statutory minimum of $25,000.00 if they are charging a fee for transporting someone. Insurance companies do not want to be in the business of insuring fee based transportation.
In addition to reducing the liability coverage to the statutory minimum of $25,000.00, the insurance companies have also inserted exclusions in the uninsured motorist and underinsured motorist coverages, which means the auto accident victim in an uber vehicle will be limited to $25,000.00 to pay for their bodily injury claim no matter how severe their injuries. And if the uber vehicle is uninsured, the victim will have no insurance coverage available to them.
Are you willing to give up significant insurance protection to have an untrained person driving their personal vehicle to give you a ride to your destination. Think about it. You have a good job and are well insured and you unknowingly risk all of that when you use an uber driver. If you are in a serious accident and lose the ability to work for a significant time and you purchased uninsured motorist and underinsured motorist coverages to protect you, your receovery will be limited to $25,000.00 if the uber driver is insured. Even if the uber driver is not at fault, you will be limited to the liability coverage of the at fault vehicle because the exclusion in your underinsured motorist policy will still apply. Time to rethink our use of uber transportation or have the legislature force the insurance companies to change their auto insurance policies!