The Dangers of Driving Uber / Rideshare Without Full Insurance in Illinois

Ridesharing has transformed transportation in Illinois, making it easier for people to get around with the tap of an app. However, the convenience of services like Uber and Lyft comes with significant risks. Rideshare accidents can result in severe injuries, leaving victims confused about who is responsible for covering damages. Fortunately, MVP Injury Law has decades of experience handling these complex cases, ensuring that both drivers and passengers understand their rights and are protected.

The Hidden Costs of Ridesharing

Uber, founded in 2009, has exploded in popularity. In Chicago alone, Uber holds 72% of the ridesharing market share. While most trips occur without issue, the surge in ridesharing has led to a troubling increase in motor vehicle accidents. Studies show that the introduction of ride-hailing services has contributed to a 3% rise in fatal accidents since 2011. This amounts to approximately 1,100 additional deaths annually, as more vehicles flood already congested roads.

Adding to the risks, many Uber and Lyft drivers mistakenly believe that the rideshare companies provide sufficient insurance coverage in case of an accident. However, the reality is far more complex, leaving many drivers underinsured and vulnerable to financial loss.

The Myth of Uber’s Insurance

One common misconception among rideshare drivers is that Uber’s insurance provides full coverage. While Uber does offer insurance for drivers, it’s important to understand its limitations. Uber’s coverage operates in different phases, and the protection it provides may not be as comprehensive as many drivers assume. The Illinois Transportation Network Providers Act requires Uber and Lyft drivers to meet specific insurance requirements depending on their status within the app:

 

• • Offline/Personal Mode: When the Uber app is turned off, Uber provides no coverage. In this case, drivers must rely entirely on their personal insurance policies.

• • App On, Waiting for a Ride: Uber’s contingent liability coverage provides up to $50,000 per person for bodily injury, $100,000 per accident, and $25,000 for property damage. However, this is often insufficient in serious accidents where injuries and damages exceed these limits.

• • En Route and During Ride: Uber offers $1 million in liability coverage when drivers are actively transporting passengers or en route to pick them up along with uninsured/underinsured motorist coverage. While this might sound sufficient, it’s important to note that this coverage primarily applies to third-party claims, not the driver’s own injuries or vehicle damage.

Many drivers wrongly assume that Uber’s insurance will fully protect them in any scenario, but this is far from reality. Additionally, Uber’s policies may not provide coverage for uninsured motorist (UM) or underinsured motorist (UIM) claims under many situations, leaving drivers vulnerable if they are involved in accidents with drivers who lack adequate insurance.

Violating Your Personal Insurance Policy

Another major risk for Uber drivers is failing to disclose to their personal auto insurer that they are using their vehicle for rideshare work. Most personal insurance policies include a “business use exclusion,” meaning that if your insurer discovers you’re driving for Uber without proper notification, your policy could be voided, leaving you personally liable for all costs related to an accident.

Insurers may argue that driving for Uber represents a commercial activity that was not disclosed during the underwriting process. If your insurance company denies coverage due to this exclusion, you could be left to pay out-of-pocket for medical expenses, vehicle repairs, and legal fees. This creates a precarious situation where drivers may be legally uninsured at critical moments.

Why You Need UM and UIM Coverage

In Illinois, uninsured motorist (UM) and underinsured motorist (UIM) coverage is crucial for rideshare drivers. UM coverage protects you if you are involved in an accident where the at-fault driver has no insurance, while UIM coverage kicks in if the at-fault driver’s insurance is insufficient to cover the full extent of your losses.

Since Uber’s policies don’t always provide adequate UM/UIM protection for drivers, it’s vital to carry this coverage on your own personal insurance policy. Without it, you could face significant financial hardship if you’re in an accident caused by an uninsured or underinsured driver.

Conclusion

Driving for Uber can be a great way to earn extra money, but without full insurance coverage, you’re exposing yourself to considerable risks. Don’t assume Uber’s insurance will cover every situation, and always disclose your rideshare activity to your personal insurance company to avoid policy violations. Make sure your personal policy includes sufficient UM and UIM coverage to protect yourself in worst-case scenarios. Taking these precautions can help you avoid costly legal battles and financial ruin.

The Importance of Legal Representation

Rideshare accident cases are not like typical car accident claims. They involve multiple parties, including the driver, the rideshare company, and sometimes other motorists, making liability more difficult to establish. Furthermore, ridesharing companies may use legal loopholes to deny or minimize claims, leaving accident victims fighting for fair compensation.

At MVP Injury Law, we’ve handled countless rideshare accident cases, giving us the knowledge and experience to tackle the unique challenges these cases present. We understand the complexities of Illinois rideshare regulations and work tirelessly to hold companies like Uber and Lyft accountable when accidents occur.

Why You Need MVP Injury Law

If you’ve been injured in a ridesharing accident, whether as a passenger or driver, the consequences can be overwhelming. Navigating the maze of insurance policies, liability issues, and legal claims can be daunting without the right legal support. With decades of experience, MVP Injury Law is equipped to help you recover compensation for medical bills, lost wages, and other damages.

We know how to fight for your rights and make sure rideshare companies and their insurers fulfill their obligations. Don’t leave your future to chance—let MVP Injury Law guide you through the process and ensure you get the protection and compensation you deserve.