Uber Drivers: Insured To Carry Passengers?

Uber and Lyft drivers are considered independent contractors, and the companies require them to have personal car insurance. This means that, if a driver is using their vehicle for personal use and is not available to accept ride requests, their personal insurance policy covers them. However, once a driver logs into the app, indicating their availability to accept rides, Uber and Lyft provide additional insurance coverage. This coverage varies depending on whether the driver is waiting for a ride request, en route to pick up a passenger, or actively transporting a passenger. In the event of an accident, it is essential to determine the driver's status and the applicable insurance coverage to understand the available options for seeking compensation.

Uber drivers are required to have personal car insurance

Personal insurance is required by law and drivers must provide proof of their insurance to drive with Uber. When offline, a driver's personal auto insurance covers them. They must maintain personal automobile insurance at mandatory minimum limits. Coverage to repair a driver's car when they are en route to or on a trip is contingent on their personal insurance including comprehensive and collision coverage.

Uber drivers are considered independent contractors, not employees of the company. This means that, in the event of an accident, Uber can deny liability. This makes it difficult for passengers to receive coverage if the driver was at fault. Therefore, it is important for Uber drivers to have their own personal insurance policy.

If an Uber driver does not have personal insurance, their vehicle is at risk of not being covered in the event of an accident. For example, if a driver does not have comprehensive and collision coverage, Uber will not cover their vehicle repairs.

In addition, a driver's personal insurance policy will only cover their vehicle's personal use. If they are driving for business, they will need a commercial policy. This is because personal car insurance policies have a clause that explicitly excludes commercial activities like ridesharing. As such, an insurer can legally deny any claim if a driver is using their vehicle for commercial purposes and does not have the appropriate insurance.

Uber drivers should also be aware that their personal insurance premiums will likely increase if they are driving for a ridesharing company. This is because they will be spending more time on the road, which increases the risk of an accident.

In summary, Uber drivers are required to have personal car insurance to ensure they are fully protected in the event of an accident. While Uber does provide insurance coverage, there are gaps in its policy, and drivers may find themselves liable for repairs and medical expenses if they are not adequately insured.

Uber provides additional insurance coverage when drivers are using the app

Uber maintains this insurance on the driver's behalf, and what is covered depends on factors such as who was at fault, whether the driver was offline, online, en route, or on a trip, and the driver's personal insurance policy.

If a driver is online and available for a trip, Uber provides third-party liability insurance that covers the cost of injuries or damage. This includes $50,000 per person and $100,000 per accident for injuries, and $25,000 in property damage per accident.

Depending on the state's laws, Uber may maintain extra coverage, including:

• Coverage for the driver and passengers for injuries in a hit-and-run or an accident caused by an uninsured or underinsured driver.
• Personal injury protection, including medical expenses and lost wages for the driver and passengers, no matter who is at fault.
• Medical payments coverage for the driver and passengers, no matter who is at fault.

If a driver is en route to pick up a rider or is carrying a passenger, Uber's insurance covers:

• The driver's liability to another party, such as the rider, if they crash into another motorist, pedestrian, or damage property. The Uber policy provides at least $1,000,000 of total liability coverage.
• Any injuries sustained by the driver due to an uninsured motorist, underinsured motorist, or hit-and-run driver. The Uber policy provides $1,000,000 of total coverage for bodily injury.
• Contingent collision and comprehensive coverage to pay for damage to the driver's vehicle, provided they maintain collision coverage for their vehicle while not on an Uber trip.

In most US states, drivers can also purchase Optional Injury Protection to cover additional medical expenses if they are hurt in an accident. This insurance is designed specifically for drivers and is offered by Uber.

Uber's insurance coverage depends on factors such as who was at fault

Uber offers its drivers insurance coverage, but it is important to note that the specifics of this coverage depend on various factors, including who was at fault, the driver's app status, and their personal insurance policy.

When determining insurance coverage, Uber categorizes driver activity into three periods:

• The driver is online and waiting for a ride request.
• The driver has accepted a ride request and is en route to pick up the passenger.
• The passenger is in the vehicle.

During the first period, when the driver is online and waiting for a ride request, Uber's liability limits are relatively low. The company offers third-party liability coverage of $50,000 in bodily injury per person, up to $100,000 in bodily injury per accident, and $25,000 in property damage per accident. This coverage only applies if the driver's personal insurance doesn't cover the incident.

In the second and third periods, when the driver is en route to pick up a passenger or already has a passenger in the vehicle, Uber's insurance coverage increases significantly. The company offers $1 million in third-party liability coverage for property damage and injuries to riders and third parties involved in an accident where the Uber driver is at fault. Additionally, Uber provides uninsured/underinsured motorist coverage, which comes into effect if the accident is caused by an uninsured or underinsured driver.

It is worth noting that Uber's insurance coverage has certain gaps, especially regarding collision and comprehensive coverage. Uber offers this coverage with a $2,500 deductible, meaning drivers are responsible for this amount before Uber's coverage kicks in. Therefore, it is recommended that Uber drivers have their own personal car insurance policy to ensure they are fully protected.

In the event of an accident, determining liability can be complex. While the Uber driver may be at fault, other factors come into play, such as the involvement of other drivers or potential negligence on Uber's part in hiring or training drivers. Consulting with a personal injury attorney specializing in Uber accidents is often advised to navigate the legal complexities and protect one's rights.

Uber's insurance also depends on whether the driver is offline, online, en route, or on a trip

Uber's insurance coverage depends on several factors, including whether the driver is offline, online, en route, or on a trip.

Offline

When an Uber driver is offline, their personal auto insurance policy is what covers them. This means that if an accident occurs while the driver is offline, their personal insurance will be responsible for covering any damages or injuries. Uber requires drivers to maintain personal automobile insurance at mandatory minimum limits and provide proof of this insurance before driving with the company.

Online and Available for a Trip

If a driver is online and available for a trip but has not yet accepted one, Uber provides third-party liability insurance in case of accidents. This coverage includes $50,000 per person and $100,000 per accident for injuries, as well as $25,000 in property damage per accident. This coverage is in addition to the driver's personal insurance policy and will only kick in if the driver requests it and if their personal liability coverage is insufficient.

En Route or On a Trip

Once a driver accepts a trip request, Uber's insurance coverage increases significantly. The company provides at least $1,000,000 for property damage and injuries to riders and third parties involved in an accident where the driver is at fault. Additionally, Uber will cover the cost of repairing the driver's car, up to the actual cash value, with a $2,500 deductible. This extra insurance from Uber protects the driver's car regardless of who is at fault, as long as the driver maintains comprehensive and collision coverage on their personal vehicle.

Optional Injury Protection

Uber also offers an optional insurance plan called Optional Injury Protection, which provides additional coverage for drivers. This plan includes benefits such as accident medical expenses of up to $1,000,000, temporary total disability coverage, and survivor benefits. It is important to note that this coverage is separate from the rideshare insurance that Uber maintains on behalf of drivers and is designed to protect them in case of accidents or injuries.

Uber's insurance coverage depends on the driver's personal insurance policy

Uber's insurance coverage depends on several factors, including the driver's personal insurance policy, whether they are logged in to the app, and whether they are carrying a passenger.

Uber drivers are required to have their own personal auto insurance, which covers them while they are offline. This means that if a driver is using their vehicle for personal use and is not available to accept ride requests, their personal insurance policy will cover them.

When a driver is online and available for a trip, Uber provides additional insurance coverage. If a driver is at fault in an accident and another person is injured or their vehicle is damaged, Uber's third-party liability insurance covers the cost of injuries or damage. This coverage is typically $50,000 per person and $100,000 per accident for injuries, and $25,000 in property damage per accident.

If a driver has accepted a ride request and is en route to pick up a passenger or is already on a trip, Uber's insurance coverage is more comprehensive. In this case, Uber maintains insurance that covers at least $1,000,000 for property damage and injuries to riders and third parties involved in an accident where the driver is at fault. This coverage also includes repairs to the driver's car, up to the actual cash value, with a deductible of $2,500. However, this extra insurance is contingent on the driver's personal insurance including comprehensive and collision coverage.

Uber also offers optional injury protection, which drivers can purchase to cover additional medical expenses if they are hurt in an accident. This insurance is specifically designed for rideshare and delivery drivers.

In some states, Uber may provide additional coverage, such as personal injury protection and medical payments coverage for drivers and riders, regardless of who is at fault.

If an Uber driver is carrying a passenger and an accident occurs, Uber's $1 million insurance policy may kick in. This policy covers both the driver and the passenger under liability insurance. If a third party, such as a cyclist or pedestrian, is injured, they are also covered by Uber's policy.

However, it is important to note that Uber's insurance coverage is not always straightforward, and there may be complexities and variations depending on the specific circumstances and the state or local regulations.

Frequently asked questions