Since its launch in the UK in 2012, ‘driver for hire’ business Uber has seldom been out of the newspapers for one reason or another. Several times this year, black cab drivers in London have staged protests over the app-driven service, which they say amounts to a taxi meter system in unregulated and inadequately licensed vehicles.
Now, back over in North America where it all started, the San Francisco-based firm is experiencing fresh criticisms and questions over its legitimacy. Authorities in Toronto are requesting in court that Uber be shut down in the Canadian city, due to concerns over lack of driver training and inadequate insurance.
Taxi insurance – Who needs to have it?
Because Uber doesn’t own its vehicles – they are owned by independent private hire drivers – the company itself is currently not required to hold insurance for each vehicle.
Uber have repeatedly stressed that they are not a taxi company. In a US legal ruling the firm stated, “Uber operates no vehicles… Uber does not provide transportation services of any kind and does not own, lease or charter any vehicles for the transportation of passengers… Uber is a technology company that licenses the Uber app to transportation service providers.”
So if Uber isn’t responsible for vehicle insurance, who is? The answer is that the individual ‘driver for hire’ is responsible for properly insuring their own vehicle.
What kind of taxi insurance do Uber drivers need?
If you are an Uber driver then you need to have commercial taxi insurance. A normal car insurance policy would be insufficient and is likely to be voided in the event that you have an accident while driving for Uber.
Even if Uber doesn’t classify itself as a taxi service, and refers to its drivers as ‘your friend with a car’, the fact is that if you are picking up passengers for financial reward at a pre-booked location, you are effectively a private hire taxi driver. A private hire taxi insurance policy is therefore a legal requirement to cover your vehicle usage. And getting the right type of insurance is down to you – not Uber.
It is particularly important that you have public liability cover as part of your policy, as otherwise you could be liable for all compensation costs should a passenger or a third party be injured.
While Uber and similar services remain in a grey area for now and the laws surrounding it are likely to change in coming years, the best advice for Uber drivers for now is to make sure that their insurance policy is correct.