Uber And Car Insurance have pretty complicated relation. We can make sure that development of technology nowadays goes pretty far for helping people solving their daily life problem. There is no doubt that Uber becomes one of technology which can offer people with great support for many people all around the world. People do not have to worry about their need of comfortable and convenience transportation support. On the other hands, Uber can also be a great way for making extra money.
Nevertheless, people must not forget that they use their personal car for doing this activity. It will make a great difference when people use their personal car for making extra money. It will affect the car insurance aspect of course. People basically take the car insurance for protecting their personal car but it will be different if people use personal car for making money because they will be seen as freelancer not only by the law but also by the insurance company. That is why people have to learn further about the connection between uber drivers and car insurance especially when they are involve in accident while driving for Uber.
Uber And Car Insurance: Insurance Company Claim Refusal
The reason why people take the car insurance is because they want to protect their car. Many people basically get the car insurance for their personal car. When they use their personal car for ridesharing like Uber, it means that they are considered as commercial driver by the insurance company. It means that there will be bigger risk which should be faced by drivers who drive for making money since they will be on the road more. They take the personal car insurance which is not meant to cover the risk which is increasing.
In fact, the policy is issued by the insurance company based on the information provided by the driver. Becoming the rideshare driver with personal car insurance policy can mean that they break the contract since there is no agreement from the company about covering the ridesharing. That is why the company can refuse the claim. This is the start of complicated relation between Uber And Car Insurance after all.
Uber And Car Insurance: Higher Premium
Because of the contract which is broken since people decide to use their personal car for ridesharing. The car insurance company can cancel the policy. Of course people cannot drive without car insurance protection so they have to look for other car insurance options. However, they will find very hard time for finding an affordable one. They have to pay for higher premium because of some reasons. The higher premium is offered for avoiding getting dropped by the insurance company again.
The higher premium must be paid because people have to be clear about their activities of ridesharing. It means that the insurance company will see more risk with the car so more expensive payment will be offered by the company. Other insurance companies will see them as high risk driver after being dropped. Some companies will refuse or offer high cost. Understanding relation between Uber And Car Insurance will help people to make better decision.