Uber Insurance Secrets & Confidentiality Woes

ride-sharing accident liability

Lawyers for ridesharing app Uber to ask judge for sealing order to keep information on $5 million insurance policy confidential for competitive reasons.

Uber claims its unique insurance policy, which it spent seven months developing, must be kept secret to keep competitors from simply copying the terms.

According to Uber representatives, the strictly confidential details of the insurance policy are tightly guarded and shared on a need-to-know basis, but not everyone is buying the story Uber is selling.

Critics want to know why Uber’s being so hush-hush when its insurance policies in other jurisdictions including California have been made public.

Another sticking point for many critics: the fact that Uber maintains that it doesn’t need to be subjected to the same licensing rules for taxis and limousines in Toronto by insisting its a technology company that links drivers with riders.

However, in an effort to protect potential passengers, the City of Toronto has issued an application for a permanent court injunction to block Uber’s operations in the city. If the courts decide against Uber and refuse to seal the order, would Uber be forced to show its hand and submit its top-secret insurance policy? It looks like time will tell and a hearing on the issue is scheduled for May.

Steering into Controversy

In the meantime, its no secret the transit giant and other ridesharing businesses have been plagued by insurance issues.

While the Uber app connects passengers with a driver at the tap of a button, what happens in the event of an accident where a passenger riding in an unregulated car-for-hire is injured or suffers property loss?

Unregulated car-for-hire companies are covered only by contingent auto liability insurance. This means drivers are not insured to carry passengers for hire. And in these cases, the passenger will have considerable difficulty in making a successful claim against the drivers automobile liability insurance company.

If you decide to use Uber, remember that you might be accepting more than a ride.  And remember, if you or someone you love has been injured in a car accident, you have legal rights that a personal injury lawyer may be able to help you explore.

Call (866) 320-4770 or fill out our FREE case evaluation form to get started.