Uber hikes rates so its drivers can pay for insurance

Uber hikes rates so its drivers can pay for insurance

Uber hikes rates so its drivers can pay for insurance To address issues raised about its driver-relations practices, ride-hailing firm Uber is launching a pilot program in eight states to cover the cost of insurance for its pool of drivers.

The firm announced that it is hiking its fare rates by 5 cents per mile to fund personal injury insurance in Illinois, Massachusetts, South Carolina, West Virginia, Arizona, Oklahoma, Pennsylvania, and Delaware.

Media outlet Buzzfeed reported that Uber has partnered with Aon and OneBeacon for coverage and will pay up to $1 million for medical expenses and $150,000 maximum for survivor benefits.

All of these benefits will cost drivers 3.75 cents per mile.

While the cost of a workplace injury is usually covered by an employer through worker’s compensation and disability insurance, Uber drivers are independent contractors. That means the company isn’t required to offer those kinds of coverage. Instead, Uber is raising rates for consumers and allowing drivers to decide whether to keep the extra cash or use it to pay for insurance, Buzzfeed reported.

"We believe drivers should have a low-cost option to protect themselves and their families against rare and unforeseen accidents that prevent them from working," said Uber head of safety and insurance Gus Fuldner.


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8 Comments
  • just me 5/10/2017 11:14:30 AM
    That's great, Uber...thanks for passing along a cost you should incur for your employees! Typical, let the consumers pay extra!
    Post a reply
  • just me 5/10/2017 11:14:30 AM
    That's great, Uber...thanks for passing along a cost you should incur for your employees! Typical, let the consumers pay extra!
    Post a reply
  • Ken 5/10/2017 11:43:08 AM
    Companies don't pay for things; they pass along costs to consumers. If they were treating their drivers as employees and buying Work Comp for them, they'd have to pass along those costs to employers. Rest assured they wouldn't pay for Work Comp by picking money off their money tree.
    Post a reply