Uber faces growing pressure in the UK after drivers and unions criticized the company's insurance arrangements. The regulation in force since January 2022, which requires drivers to take out policies with only eight Uber-approved insurers, reportedly leads to significantly higher premiums.
More than 70 percent of drivers reportedly faced higher insurance costs due to the regulation in the last two years, according to a sample from a comparison website. Drivers report sometimes drastic premium increases, which in individual cases led to a tripling. Some drivers claimed they had to reduce their coverage from comprehensive to third-party only to cut costs.
At a meeting with Uber on Tuesday, the GMB union wants to demand a relaxation of insurance requirements. "It should be an open market," said Steve Garelick, regional organizer of the GMB. The union is calling for an expansion of the insurer panel to promote competition and reduce premiums.
We have no choice," declared driver Muhammad Minar, whose bonus allegedly increased by 48 percent in 2023. "When you drive for Uber, you have no alternative.
Experts warn that insurer requirements could potentially be anti-competitive. The restriction to the panel, which includes around 50 percent of insurers in the British private rental vehicle market, could hinder competition, according to an industry representative.
Uber justified the introduction of the panel with requirements from Transport for London (TfL), which demanded stricter verification of insurance documents. Through the Instadoc system, Uber can now check the validity of insurance in real time. "Our priority is to improve document verification to meet our obligations to TfL," said Uber.
Uber plans to expand the system in early 2025, according to its own statements. Drivers will then be able to compare premiums from panel insurers to promote competition. In addition, the company wants to increase the options for drivers.
Whether these measures are sufficient remains unclear. The union and many drivers are demanding a quick and comprehensive solution to reduce the financial burden and restore competition in the insurance market.
