Favor Delivery: How Many Reckless Drivers Driving Without Insurance?

EconMatters's picture

By EconMatters


No Parking Sign Means NO Parking

One of my friends in Houston Texas recently had a run-in with a driver of a company called NeighborFavor Inc. d/b/a Favor Delivery.  


It was actually a fairly minor fender bender type of auto incident where a Favor Delivery driver (or runner as Favor calls them) parked at a Fire Lane No Parking Zone directly behind my friend’s garage for a quick drop-off on the job.  My friend inevitably backed into the Favor Driver’s car. 


Driving without Insurance Is a Serious Matter

My friend complained to favor’s corporate office about its driver’s illegal parking causing the accident, and also filed a claim with the runner’s personal auto insurance co.  The initial communications by Favor seemed to think the driver’s insurance co. should cover this claim.  Then the driver’s insurance company noted an “exclusion paragraph” that the personal policy does not cover “liability arising out of operation of a vehicle while it is being used for a fee” which includes delivery for profit.  



This means that Favor driver was driving illegally without proper insurance while on the job!   



My friend immediately communicated this “exclusion” and how the driver was actually working for Favor without proper insurance, and if Favor has a corporate policy to cover its drivers on the job.  The subsequent communication from Favor simply denies any wrong doing, yet did not answer the very important question regarding its driver insurance coverage. 


Who Is Favor Delivery?

Based on Google search and emails between my friend and Favor, I understand Favor Delivery is one of those start-ups catering to the Millennial or Gen Y lifestyle of having everything delivered.  Favor’s business model is very similar to Uber that anyone can apply and become a runner making extra bucks delivering for Favor.  Favor Delivery has no company fleet, and each runner makes delivery on the job using their personal vehicle without any company sign or logo.  


Is Favor Delivery a Responsible Corporate Citizen?

The first question that comes to mind:  How can any legitimate company say it with a straight face that its driver was not at fault parking at a Fire Lane No Parking Zone and driving without insurance?  Is this an appropriate manner in which a responsible corporate enterprise which is community facing should behave?      


The second question:  Since Favor did not respond to the question regarding a corporate policy, does that mean Favor does not have a corporate insurance policy covering its runners?  From there, I can only imagin Favor’s operating model most likely is to rely on each runner’s own personal policy to cover vehicle accident liability on the job so to save on a more expensive corporate policy.  (Is Uber also operating under this kind of business model?) 


A Huge Liability Issue for Uber-like Delivery Business

This means there could be a whole lot of pseudo delivery drivers operating in the United States with a gap in their insurance coverage, i.e., they may think their employees have proper insurance coverage, when in fact these drivers are not covered at all for operating in their role as an employee for these Delivery Companies (For a Business) as opposed to covering normal driving activities of a personal nature. Once you cross the line of going “professional”, insurers have clauses to exclude their liability - so how many delivery drivers are actually insured?


This sets up a huge liability for the Uber-like delivery business, i.e., if fatality is involved while driving and delivering and they are found negligible and have no insurance, the trial lawyers are going to have a field day with these delivery firms.


Uber has already failed pretty poorly in the courts so far. I think ultimately these delivery companies that are springing up almost daily have underestimated the standard business practices and costs associated with running a fully insured, corporate enterprise and most likely could go bankrupt or litigated into bankruptcy from a liability standpoint.


Breaking Two Laws and No Fault?

Regardless who was at fault in this particular incident, one thing clear is that this Favor driver broke at least two laws - a Texas law requiring every driver to have at least liability insurance and failure to observe the Fire Lane No Parking sign.  It also shows Favor’s lack or disregard of proper safe driving training for its drivers.         


Reckless Favor Delivery in a City near You?


According to its web site, Favor Delivery is currently operating in 22 cities in the U.S.  From what I’ve seen based on my friend’s experience, Favor is operating a reckless nuisance business in communities all over the United States (and in Toronto, Canada).  I wonder just how many reckless Favor Delivery drivers are driving around your subdivisions without proper insurance coverage.         


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shovelhead's picture

I asked my ins. agent if they had a policy to protect me from 'driving while Asian'.

He's Korean.

Laughed his ass off and started telling me about all the accidents his extended family has caused.

"Good thing I'm an Independent Agent so I spread them out so nobody will cancel my sales contract. They're an Insurance Co. wrecking crew."

gdpetti's picture

3rd world economic realities, deal with it!

yellowsub's picture

In NJ they offer low cost insurance with no liability coverage just medical.  

Pretty much you are screwed if they're at fault and have no money to sue.  



quietdude's picture

One of my slimy ex tenants has driven without a license for 15 years. He lost his license for DUI and never got another. He has been caught twice in 15 years, paid the fine and kept driving. His wife has the car and insurance in her name. The guy is judgement proof because they have zero assets.

The asshole spends his life with a beer in one hand and a joint in the other and complains about being poor. Sounds like a future Hillary voter.

Stu Elsample's picture

Just an observation...Not a single negro in this city has car insurance.

And just like everything else they feel entitled to for being black, they think that the gubment should provide car insurance for them too. Because the gubment does not cover them, the insured (responsible) drivers have to via high premiums. So if a privileged freeloading welfare trash black motorist runs a red light and you have the opportunity to plow into the driver's side door hard...do it...you want to hit them hard enough to make their 'weave' leave their head (it's easy to do if you drive an 8000 lb. beater pickup truck with heavy steel bars mounted on the front). Make them and your insurance company pay dearly for making you pay out the ass to cover their uninsured black asses.

mary mary's picture

Time for President Obama to do something emergency-sounding.  Call out the Uh-oh Squad!  Talk tough.  Put on his "I dare you" face.  Lean forward on Americans who brazenly expect drivers to do things like actually look where they are driving.  Personal responsibity expectation alert!  Crisis!  Crisis!

mary mary's picture

The title asks, "How Many Reckless Drivers Driving Without Insurance"?  But the Favor driver was not driving.  He was parked.  The author's friend was the one who was driving, and apparently he was driving backwards without looking where he was going, which might be considered reckless.  What if he had backed over a kid instead of backing into a parked car?  The sign doesn't say, "no kids".  You ALWAYS have to look where you're driving.

mary mary's picture

So are all the Brinks trucks that park in front of all the grocery stores breaking the law, because that's always "no parking zone"?  Should people back up into the Brinks trucks and then sue Brinks?  Should people back up into every car they see parked where someone has decided to put a "no parking" sign?

g speed's picture

In this world you are much better off witout insurance---First you pay the premium. When you need the insurance for your self ( as in loses like fire ) they won't pay---If its a liability issue then the lawyers come out of the woodwork like fucking roaches---

On the other hand if you don't have insurance and son't pay premiums then you pocket that money--in my case it was $7000 a year for a small business. In 10 yrs I was holding a $70000 dollar cash fund for self insurance with nothing on the books-- any lawyer worth his ticket to hell wouldn't touch a liability case against me because he can't see any money--no deep pockets. I'm 10 times more protected against loss by not having insurance than by having it. 

Thats why they need laws to make you buy it----laws are made by corrupt lawyers turned politician who see profit in protection rackets and other organized crime operations and emulate the operations with gov't coersion.----fuck um all----

mary mary's picture

Yes.  Many States won't give you a driver license until you have shown them proof that you have car insurance.  So, after you have paid ad valorem and sales tax to buy the land to build the road on, and to build the road, and to maintain the road, and to pay the police to patrol it, you yourself aren't allowed to drive on it.

Back in George Washington's time, people rode horses, and there was no requirement for you to have horse insurance.

stormsailor's picture

perhaps, lucky one of your employees didn't back over a 5 year old and end your business, and perhaps everthing you own,  any lawyer worth his ticket to hell would pierce the corporate veil due to gross negligence of management.

mary mary's picture

True, but in all the decades I drove as part of my job, I never backed over anything.  I wonder whether the author's friend was an attorney, or some other person used to privilege.

Sovereign Economist's picture

Excuse me?  EXCUSE ME!!!!!!!!!!!!!!   Why is this Hit Piece against Favor completely ignoring the fact that the driver BACKED INTO A PARKED CAR????   IDIOT!!!   Just because it's a No Parking Area DOESN'T MEAN that no vehicle would EVER be there!!!   Did this IDIOT even bother to LOOK BEFORE BACKING???    I was always taught that when I get behind the wheel, I AM TOTALLY RESPONSIBLE FOR WHAT HAPPENS AS A RESULT of my driving decisons and actions!!!

Oh.... Wait.... SILLY ME!!!   In this day and age... IT'S ALWAYS SOMEBODY ELSE'S FAULT!!!!


Nobody For President's picture

@ Right , SE. What would have happened to this sap if he would have backed into a parked *Fire Engine* parked in the 'No Parking, Fire Lane' zone?

As a 20 year volunteer firefighter, my hint would be: He would be fucked - by the local agency, his insurance agent, and his insurance company, that would pay - then jack his rates sky-high.


Carl Panzram's picture

This type of insurance (commercial) is incredibly expensive, and there are very few companies who even offer commercial insurance. Virtually no delivery drivers have an auto policy that covers their job. Consider also, the cost of said policy. Depending on what state you reside, it may not pay to work. I would estimate a weeks pay, maybe 1.5, toward auto insurance.

OldPhart's picture

WE have a fleet of over four hundred street vehicles of various types.  Our auto insurance premium is $125 a YEAR per vehicle in California.  The coverage isn't that expensive for fleets with decent driving records.

roddy6667's picture

There is something wrong with those numbers. Are you self-insuring? No way you can insure a commercial vehicle for $125 a year. There must be more to the story.

OldPhart's picture

Yes, we're part of an insurance pool. 

ISEEIT's picture

I think I remember a crazy person telling me once that when Hillaries husband said "Depends on the meaning of what IS IS.

Well I won't say the rest of it because it was way too weird and lot's of weird things happen.

Doesn't make 'em true.


williambanzai7's picture

Here is your solace, the lazy slobs who use this service will die of early heart failure.

Socratic Dog's picture

Fuck the author, and fuck his joo insurance companies, and fuck government mandates telling me if I don't buy something I'm breaking the law.  And fuck the bakers, while I'm at it.

Kprime's picture

man shall not live by bread alone, but by every utterance which speweth forth from the mouth of .gov.  "thou shalt be my slave and the slaves of mine industries."

Nobody For President's picture

@S- Dog : If we fuck the bakers, do we have to fuck the butchers and candle-stick makers too? How about the Pawn shop owners?

mary mary's picture

And the pole dancers?   :-)

stormsailor's picture

i got a pole they can dance on

brooklinite8's picture

In a data driven world can we see the number of drivers who never had a major accident (I am not talking fender benders) Vs How much Insurance did they pay Vs What would that savings might have accounted for when he stopped driving may be at a compounded inflation rate?

I would be pissed at Uncle Buffet if I am one of the people with no accidents. This is an extortion scheme. Learn to invest from Buffet and other useless insurance companies. Fuck you. Fuck you America.

brooklinite8's picture

Are there any good philosophical books on the morality and ethics of Insurance (Health, Auto, Home and so on)..please? I am trying to understand the legality of insurance.

ISEEIT's picture

"Good" philosophical books?


Yeah, I'm sure a few folk's have made a fortune selling material relevant to the "morality and ethics" of insurance.

I'll find you a link. It (I'm pretty fucking sure) won't advise regarding specifically targeted info per your request, the link WILL help you go from where you are now, to a far more well developed recognition of reality.

Actually, I'll give you two:







+ a bonus...




And, and, and..If you really wanna geek out:



g speed's picture

to make it simple ---a little common sense-- The cop on the beat says you need a drivers license to drive---fucking lying cops-- I can drive just fine with out a fucking license. The truth is the fucking lying cops need me to have a license so they can extort money --fucking highway robbers---

Your insurance is the same thing just the system operators get the bucks in the mail and don't even have to go on the street to get it. fucking thieving lawyers and judges.    --rant/off--

bluskyes's picture

driving is a commercial activity. travel is a right

cornedmutton's picture

I suggest all understand the legal distinction afforded the differences between Motor Vehicle and Personal Conveyance and how the law is applied in each case, according to state law.

A strict interpretation reveals no Driver License is required if the Personal Conveyance is for personal travel and Not for Profit. A Driver License is intended to regulate Commercial activity only.

TPTB have bullied all into compliance with a requirement to be licensed that does not apply to the non-commercial driver. Talk sbout a racket.

PoasterToaster's picture
PoasterToaster (not verified) May 6, 2016 6:02 PM

Nobody should be forced to buy "insurance".  If you are worried about it, buy it to cover yourself.  This extortion at the hands of the State, which is used to cover the OTHER assholes on the road, is just a racket. 

The most irresponsible drivers are the ones who think insurance somehow protects them.

g speed's picture

Facist racket---state mandates you spend for ??what?? a promise to pay damages if you pay premiums but the whole scheme is one sided cause you are forced to pay but the insurance co is not---fuck them --kill them all---

Mr. Ed's picture

Mandatory auto liability coverage IS a racket!  And just as insurance companies have used government-mandated medical coverage to enrich themselves outrageously, they continue to press the gov-mandated auto liability issue to the point that now in many states, you have to have an insurance policy BEFORE you can get a registration!  ...and that means, if you have several vehicles for backup transportation (but you can only drive one at a time of course), YOU HAVE TO ENRICH YOUR INSURER BY GETTING INSURANCE FOR EVERY DAMNED ONE OF THEM!!!!  continuously(!!!!!!) ...you can thank insurance lobbyists busy at work in state legislatures making their client companies rich.

The irony of the whole mandatory insurance thing is the state uses the rhetorical term "financial responsiblity" to imply (incorrectly in this case) that individuals have personal responsibility for their actions in the good ol' USSA, as if that's how things actually work!!  What a crock... in a country that now coddles just about everyone with a little boo-boo... in a country where personal financial responsibility is just about unheard of as a basic principle... but, hey it works for insurance companies.

This only scratches the surface of what's going on with these rotten auto liability laws, but insurance companies see mandatory liability as a given, as free money, and that needs to be re-examined.

kenny500c's picture

Since the illegally parked car was stationary and your friend's car was in his/her control and moving he/she is at fault. But you are right, there are many drivers tooling around without insurance, that is why most people by uninsured motorist protection.

ISEEIT's picture

That SHOULD be the Truth, because it IS.

Unfortunately Hillary's husband fucked that one up.

Thoreau's picture

Wrong. If you double-park and an accident ensues as a result, you are responsible due to being an obstruction and impeding the line of sight.

83_vf_1100_c's picture

  One can argue the merits of both views. The fact is there is a law that covers it and the law is the ultimate decision as to who is at fault. Hang a lawyer today.

mary mary's picture

So if the writer's friend feels he was wronged by the owner of the car he backed into, he can take the owner of the car to court, and the law will decide.  What's so hard about that?

Umh's picture

Not arguing the merits of this case, but have you ever tried to recieve a court judgement from someone with no assets. Most people don't even take them to court since they will have to spend time & money to receive nothing.

Mr. Ed's picture

Absolutely correct.  If the car's moving under your control and you hit something stationary - quit whinning; you're at fault.  Illegally parked? Uninsured? ...got nothin to do with it.

JetsettingWelfareMom's picture

The profit model collapses on both sides if insurance has to be provided--the corporation can't do it (are they employees or contractors? Let's give them Obamacare too!) and stay competitive. On the other side the young gig economy types aren't making enough from these deliveries to want to disclose to an insurance company that yes, they do drive for a living sometimes. The several hundred increase isn't worth it for $10 sporadic driving gigs. Call it a black hole...

Duc888's picture




How many illegal beaners driving without insurance? 

XitSam's picture

"My friend inevitably backed into the Favor Driver’s car."

Exactly how was it "inevitable"?

Was the Favor driver present? Was he behind the wheel of his car, standing beside his car or somewhere else? (This goes to the legal definition of stopping, standing, or parked.)

Do you think that illegally parked cars give you permission to collide whenever you like? 

Was the no parking zone across the street from your friend's garage? This isn't clear.

nmewn's picture


"My friend inevitably backed into the Favor Driver’s car. 


Driving without Insurance Is a Serious Matter

My friend complained to favor’s corporate office about its driver’s illegal parking causing the accident, and also filed a claim with the runner’s personal auto insurance co."


Apparently, "his friend" backing over the neighbors dog or child who happened to be walking by would not be "illegal" yet still an accident.




Well, his friends action caused it of course...lol.

shovelhead's picture


I always shut my eyes while driving whenever I see a no parking sign.

It's the natural thing to do.

bonin006's picture

EconMatters is the same outfit that put up a chart of UNG unadjusted for 8:1 reverse split to show that it supposedly tracked natural gas prices, when it actually was down about about 10X more than natural gas. If I had noticed who put this up first, I wouldn't have bothered reading it.

Dark Space's picture

So, take the driver to small claims court. Sounds like it was minor enough insurance shouldn't even be involved anyway.


Uber's requires drivers to carry insurance that covers their risks while driving for hire. They've endlessly publicly provided this description in city halls across the country and numerous newspapers. This situation is very different from Uber.