Being an Uber Partner myself for the last 2 years, I’ve heard a lot of horror stories about Uber Partners getting into accidents without having the right Uber car insurance.

It’s understandable why you would want to overlook getting a car insurance:

1. because they think TPL (Third Party Liability) would be enough and,
2. they think having car insurance is just an additional unnecessary expense in their Uber operations.

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But we believe otherwise. Ridesharing, together with other transport services such as taxi, UV express, courier services, has inherently higher risk than other types of businesses. Why? Because day in and day out, your car and driver are on the road.

Ang aksidente, hindi namimili kahit gaano ka pa kaingat.

Here’s a real life story shared by an Uber operator and the price they paid from not having the right car insurance:

To augment our increasing household expenses and earn a little on the side, we signed up our 2 year old Toyota Vios in Uber last 2015. The car insurance was due for renewal but when I saw how much I should pay for premium, I was surprised at how expensive it costs.

 

Then I thought to myself, “the cost of the insurance can pretty much cover a couple of months’ amortization.”

 

So I decided to skip the car insurance so I can save the money and just allot it for the monthly car amortization instead. This way, I limit the expenses and earn more.

 

A wise move right? I thought so too.

 

Anyway, our driver and my husband (who also drives part-time with Uber) are “defensive” drivers and they are always careful. We never had (and praying never will have) any major incident that would warrant a visit to the dealership and require for an insurance.

 

Also, Third Party Liability (TPL) also is always a cheaper option. A TPL costs less than Php 1000 a year, compared to a comprehensive insurance, which costs about Php 25,000 at least.

 

I thought TPL insurance was enough. I was wrong.

 

 

THE SAD PART

Last March, I had a call from my driver. He was driving a rider home when they got into an accident. The front bumper of the car was significantly damaged.

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Since we only have TPL , we had the repair estimated and we were surprised that the damage would cost us around Php 90,000. If we had a comprehensive car insurance, all it would have took was a police report, some pictures of the accident, and a minimal participation fee as compared to the estimated cost for repair.

 

So, we tried to settle with the driver who got in the accident with us.. We tried calling the driver several times but soon after it became obvious she would not settle.

 

We went to the point that we even sent a demand letter – thrice!

The driver denied that it was her fault.

 

The only way to pursue it is to file a case against the driver. Yes, we have to go through the tedious, time consuming and expensive process of filing a case in court. We need to collate necessary documents, affidavits, cost estimates, and attend hearings.

 

But considering how long the case will drag and how much the cost as opposed to our monthly expenses, I decided to just have the car repaired instead.

 

IT WAS A BAD DECISION

As of now, the car still needs a few weeks before going back on the road. Since the accident, we were not able to drive for Uber, resulting in loss of income not just as an operator but for our driver too.

 

All the while I thought I was ”saving” money but look where it got me – not only did I pay more than I should have if I had the right insurance, I lost a few months’ worth of earnings, plus the cost of car repair, time and a whole lot of effort.

 

THE EXPENSIVE LESSON

Thinking back, how I wish I and decided to have the right insurance for my Uber vehicle.

 

Skimping on car insurance is a very costly mistake and I regret that decision. The insurance premium cost of Php about Php 25,000 a year; does not even come close to the losses that we incurred.

 

Expensive lesson learned: get the right car insurance for your Uber vehicle It’s better to be safe than sorry. To quote my spouse, “may mga bagay na hindi dapat tinitipid.”

Through this blog, we’ve heard of worse stories of Uber vehicles getting wrecked in an accident without proper insurance in place. But we wanted to show you a simple example of minor repairs that ran up to hundred thousand pesos to repair.

YOU CAN PROTECT YOUR UBER BUSINESS

Knowing that the transport business is very risky and given that the car and driver/s are on the road every day, it is necessary to have the right car insurance for our Uber vehicle. It’s best to be prepared before a car accident happens whether it’s minor or major.

Contrary to common belief, the car insurance doesn’t necessarily have to be expensive. There are providers that give the same coverage at a lower annual premium.

We usually get our insurance from a single provider until a friend introduced us to Moneymax.ph, a car insurance comparison website.

I thought we are getting a very good deal for the past years (I pay Php 26, 000-28, 000 per year) until I saw that I can still lower my annual premium and save about Php 5, 000 or more if I compared other insurance providers.

You can ask for a car insurance quote below and they will reach out to help you get the best and right car insurance for your Uber vehicle.

TIP: When getting the right car insurance for your Uber vehicle, make sure you compare the inclusions and coverage of the policy. Make sure you are covered in case of theft, Acts of God, minor and major accidents. You might also want to consider how easy is their process for claiming insurance.

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