PA Uber Rate Increase Funding Personal Injury Insurance

During May 2017, rideshare company Uber raised its rates in Pennsylvania and 7 other states. The rate increase was part of a plan to encourage drivers to take part in the company’s personal injury protection insurance program. The insurance will protect insured drivers who sustain injury as a result of an Uber accident.

The rate increase of five cents per mile covers the 3.75 cents per mile cost of the insurance for drivers who choose to participate in the Uber personal injury insurance program. Drivers who do not wish partake in the insurance program can pocket the increase. Additional states participating in the program include Delaware, Massachusetts, Illinois, South Carolina, West Virginia, Oklahoma and West Virginia.

In a Philly.com article, Uber spokesman Craig Ewer said that drivers should have a low-cost option to protect themselves and their family against rare and unexpected Uber accidents that prevent them from working. NerdWallet suggests that when an Uber accident occurs, the rideshare driver- not the passenger or other driver- may face the most financial risk.

Uber’s personal injury protection gives drivers the option to obtain coverage for medical expenses, survivor benefits and disability income replacement resulting from a work-related accident with Uber. The maximum payout for an Uber accident would be $1 million. This is more than the minimum required coverage amount in many states, including Pennsylvania.

According to Legal Lookout, Uber also provides drivers with liability coverage. This protects the Uber driver in the event he or she causes an accident and a third party, such as a passenger or the driver of the other vehicle is injured. Uber’s liability coverage is situational, based upon whether the driver is transporting or picking up a fare, or waiting for a call.

Rideshare drivers may also want to discuss coverage options with their own insurance companies.  Many major insurers also offer rideshare policies. Another Legal Lookout blog suggests that individuals injured in an auto accident involving an Uber driver may be eligible to file a claim against the drivers insurance company if the policy provided by Uber is not enough. In some states, the injured party can file a personal injury lawsuit against Uber to seek compensation for medical expenses incurred because of an Uber accident.

Pennsylvania Uber drivers are encouraged to discuss policy limits with their insurer to determine whether additional insurance is needed outside of Uber’s personal injury and liability coverage plans.  Individuals injured in an Uber accident should contact a Pennsylvania auto accident lawyer to discuss their eligibility to file a claim for compensation.