Limited insurance options for London Uber drivers prompts union concerns around rising policy costs
Private hire drivers in London are raising concerns over the limited options for insurance coverage required by Uber. The restrictions are reportedly driving up premiums, prompting allegations of anti-competitive practices in the sector.
Drivers working on the Uber platform in London must secure insurance from a small group of ‘TfL-approved’ providers. According to GMB, this limited choice is inflating costs. Walsingham, previously a low-cost provider popular among drivers, has now exited the market, further narrowing the field.
Uber states that the restriction ensures compliance and streamlines the verification process. From January 2022, drivers in London must select insurance from a specific list of providers integrated with Uber’s Instadoc system. While this aims to provide quicker digital uploads, critics argue the policy places undue financial strain on drivers by eliminating competitive pricing.
In cities outside London, Uber drivers can choose from a broader range of insurance providers, avoiding the premium increases faced by their London counterparts. However, within the capital, the reduced competition raises questions about the fairness of the system and its impact on drivers’ livelihoods.
A GMB spokesperson said via their Uber noticeboard: “GMB has previously raised the issue of insurance where Drivers are restricted to only eight TfL-approved insurance providers, causing premiums to rise. Walsingham, previously one of the cheapest options, is no longer accepting private hire drivers.
“This limited choice appears to be creating an anti-competitive situation where providers may be working together to keep prices high.”
