Honestly, I'm starting to think the same. Before I started driving, I figured my personal car insurance plus what Uber provided covered me. After a few posts and lurking a bit on here and learning a lot, turns out my that insurance doesn't mean jack the moment I go online with Uber. Considering my very first day of driving I almost got rear ended while at a full stop at a red light? I'm now rather paranoid about driving for Uber. From looking into livery insurance for here in Michigan, it looks pretty cut and dry, it would wipe out the profits I do make on good days. Considering I just do Uber on weekends, and have to drive 20 minutes just to get to the city I work in, I'm of the mindset that it just isn't worth it, especially since I don't drive a Prius, I drive an Equinox, which sucks gas during city driving.
It's a fun job, for the time I've done it, barring my first weekend where I had a bunch of hiccups(my first night was horrible especially), it is a very fun experience. Meet a lot of people, hear a lot of interesting stories, and generally my fares are chill and cool people, I wish I could do this all the time. Once I got the handle on my city and learned it fairly well, driving for Uber is a pretty smooth and overall fun experience. Sadly I think it just isn't going to work out for me and the profit really isn't there if I fork out for insurance. I managed for awhile without it, but it is a serious risk to take. As I said, having some crazy kid come flying up behind me only to slam on the breaks just in time and stop short a couple inches away from my vehicle was NOT a good experience, and now that I know that I'd be left hanging in the wind if I had been hit, the company has left a bit of a bad taste in my mouth.
If I relocate to an Uber city and get a suitable car meant for Uber driving (ie something like the Prius), I think I'll try it again. For now? Eh, I think I'm going to have to hang it up for the time being. You *HAVE* to be setup just right for it or you are just going to screw yourself IMO.