Whose Insurance is It Anyway? Enterprise Offering Rentals To Uber Drivers in Denver

Aaron Cole
by Aaron Cole

Uber and Enterprise Rent-A-Car announced Tuesday a pilot program in Denver to rent cars to mobile entrepreneurs for ride-sharing services, according to the Denver Post.

The program, which will cost $210 a week on top of a $500 deposit, will make available cars to roam the city streets for people who don’t sleep for a week at a time. The $210 cost for the rental will be automatically deducted from the driver’s earnings, and if the driver doesn’t make enough to cover the cost of the car they’re still totally on the hook.

“What we’re trying to do here is lower the barrier to entry for someone who does want to work with Uber but who does not have a qualifying car or doesn’t have a car at all,” Andrew Chapin, Uber’s Head of Vehicle Solutions, told the Denver Post.

The insurance situation is a little cloudy, however.

According to Uber, the trip would be covered through its third-party insurance program like any other Uber driver. Enterprise says the car is covered like any other rental car. Does my Visa help us out at all?

“What are the liability limits?” Loretta Worters, a spokeswoman for the Insurance Information Institute told the Denver Post. “It’s not just a risk to you, but if you’re renting a car to use for business and you get involved in a car accident and it’s severe, — a lost life, someone becomes a paraplegic — you could be on the hook for a couple million dollars.”

Prospective, but car-less, Uber drivers must still apply and pass background checks to pick up complete strangers in rented cars, the company said. Enterprise said the rentals would be allowed to travel 2,500 miles in 28 days, or the driver would pay 25 cents per mile over the allowed mileage.

Uber offers Uber Xchange Leasing that leases new and used cars to drivers for $250 a month in specific cities. Those cars must be 2010 or newer and cost less than $20,000, according to Uber. In addition to financing through Uber, drivers must work for Uber through the car’s 36-month term or pay an early termination fee of $250.

Enterprise didn’t specify what kinds of cars it would make available to Uber drivers. The program is slated to begin in Denver this month.


Aaron Cole
Aaron Cole

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  • VenomV12 VenomV12 on Dec 02, 2015

    I don't like or dislike Uber one way or the other, you don't have to use it and you don't have to drive for them. My only concern pretty much is if they have insurance to cover any incidents should they happen. The cab companies cut their own throats, if they weren't so bad then Uber and Lyft would not exist and be successful today.

    • See 2 previous
    • SunnyvaleCA SunnyvaleCA on Dec 02, 2015

      @stevelovescars I think taxi services in many areas of the country demonstrate the classic problems of government enforced monopolies. Regulation, rent-seeking, boondoggles, etc have resulted in poor service at a very high price. Steve mentioned lack of newer, cleaner, and less stinky cars... Why would the owners of the taxi cabs and medallions bother? People will still use the old, dirty, stinky cabs because they have no choice (before Uber). Upgrading the cars won't earn more money. Maybe the driver would get a better tip, but that tip doesn't go to the owner of the car. In addition to being better in almost every way, Uber is substantially cheaper. A few weeks ago I took a ride to San Francisco airport. The taxi service estimated $111 for the ride. I used Uber, rode in a spotless Jaguar (yes, really!), and paid $55. Actually, even better, I didn't do any "paying" at all... the cost was directly charged to my credit card that was on file already.

  • SunnyvaleCA SunnyvaleCA on Dec 02, 2015

    >>> how the cab companies were not protected from competition from Uber

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