I wish people who don't understand how the insurance thing works with Uber would keep their mouth shut instead of spreading lies and rumors.
I agree that's why it's comical for you to get your "facts" wrong.
The scariest part about Uber and their insurance is that they actually have the choice of whether or not to apply their insurance on a case by case review basis. If Uber wants to leave the driver hanging after an accident, well, Uber can leave a driver hanging and require their driver to utilize their own insurance. I don't know where you get the idea that these drivers will never utilize their personal insurance policies when driving for Uber.
Here's what would probably happen: if the Uber driver has an accident-- and they're afraid of losing their job which could quickly and easily happen with Uber-- the Uber driver will pretend that when he had the accident that he was just a private citizen. He'll do his best to cover up the fact that he was driving Uber at the time. That way his private insurance will work and he won't lose his job. Basically the whole situation is encouraging fraud on the part of Uber drivers.
But you get the facts just so completely wrong. The "solutions" that have been worked out by Uber vary widely from state to state and even from city to city.
For example, in Portland, Uber is allowed to offer two-tiered insurance. Your version paints an inaccurate version of events: driver turns on app and *bam* driver is 100% covered by Uber's super great insurance. (Not so, firstly, because of the point I made above: Uber can veto their coverage on a case-by-case basis and drivers are highly motivated to commit fraud.) But in Portland, if the driver signs into the app but doesn't yet have a customer in, they are covered only up to $50,000, not a penny more. The Portland city council recently voted to allow Uber to have a two-tiered insurance. If the Uber driver has a passenger in, then, yes, they are 100% covered by Uber. If not, then the much lower amount kicks in.
Not let me ask you, what business do you know of that is allowed to have lower insurance levels simply because they don't have a passenger in or aren't carrying any freight (assuming we're also talking delivery vehicles)?? How is that good for the public? Uber driver gets a call, chases for it, hits someone and sends them to the hospital. Assuming the driver doesn't quickly sign out of the app and just do everything on his own private insurance, $50,000 wouldn't even cover all of surgery from a serious accident. No other business in Portland is allowed to skirt the regular insurance rules and requirements. All of this is partly because city officials in Portland were in the pockets of Uber.
The state I live in doesn't even have a minimum requirement for Uber insurance. Do you think Uber is really going to pony up big money and make sure all drivers are 100% covered whenever they are signed into the app with great insurance? Portland is just one example. Unless your state or local municipality actually requires Uber to have great insurance all the time, it just isn't there.