Uber Sues Its Insurer, Claiming It Fails To Honor Coverage For Drivers In Accidents

Ride sharing company Uber is suing American Transit Insurance Co.because it claims that the insurer is failing to honor its coverage on drivers in New York City who have been in accidents.

Regardless, Uber - best known itself for being tied up in litigation and regulation about how it compensates its drivers - has filed sued claiming that ATIC uses "unreasonable practices" in handling claims.

The ride-sharing company says that ATIC's failure to cover drivers in accidents has resulted in 23 lawsuits against Uber and its drivers, which has left the company footing "substantial amounts" to defend itself.

Now, Uber is turning the flashlight on ATIC's practices. 

“ATIC’s detrimental conduct has negatively impacted thousands of New York City for-hire drivers,” the ride-sharing company wrote in its complaint, according to a report by Bloomberg last week. 

Bloomberg's report noted that in the filed complaint, Uber did not specify whether American Transit offered any justification for the claims it failed to cover.

The legal action accuses American Transit of violating their contractual agreement and demands that a court mandate the insurer to both defend and indemnify Uber against the lawsuits arising from the accident, in addition to seeking financial compensation.

ATIC is based in Brooklyn, so it should already be familiar with the wonderful intricacies of New York City driving.

Meanwhile, Uber was last in the news over allegations of hiking prices on customers who had low smartphone battery levels. Between the shady "charging" practices, zero insurance and the toll at the Lincoln Tunnel now standing at about $15,000, we'd bet someone's going under soon. 

If only there was another solution in New York City...sigh.