Ubereats And Auto Insurance: What's The Deal?

Uber Eats offers third-party liability insurance for its drivers, but it is limited and only applies when the driver is online and on the clock. This means that drivers need to purchase their own insurance coverage, and in some cases, additional commercial insurance. Uber Eats insurance will not cover drivers who are offline, running personal errands, or driving to the gas station, for example. It is also important to note that Uber Eats insurance does not cover accidents that occur in New York State.

Uber Eats auto insurance requirements

Uber Eats provides commercial auto insurance coverage to its drivers, but only while they are driving for the company. This means that the Uber Eats app must be online and the driver must be on the clock for the insurance to be valid.

Personal Insurance

To drive for Uber Eats, you must have personal liability coverage on the vehicle you plan to use for deliveries. This insurance must be in your name, and you will need to submit proof of this insurance when you sign up to deliver for Uber Eats.

Additional Insurance

Uber Eats recommends that drivers purchase commercial auto insurance to ensure they are completely covered. This is because your personal car insurance will not cover you for any business use, including rideshare services or food delivery work. As such, you will need to add extra rideshare insurance to your current policy.

Collision and Comprehensive Coverage

If you have collision and comprehensive coverage on your personal insurance policy, Uber Eats will provide contingent comprehensive and collision coverage while you are driving for them. This provides additional protection for physical damage to your car up to its actual cash value, regardless of who is at fault.

Personal liability coverage

When it comes to UberEats, they do provide third-party liability coverage for their delivery drivers while they are active on the app. This means that if a driver is involved in an accident while delivering food, UberEats' insurance will cover the expenses related to the other party's property damage and injuries. However, it is important to note that UberEats' liability coverage may not be sufficient, and drivers may need to purchase additional insurance to ensure they are fully protected.

In most states, it is a legal requirement to have personal liability coverage as part of your auto insurance policy. This coverage typically includes two main components: bodily injury liability coverage and property damage liability coverage.

Bodily injury liability coverage takes care of the medical costs of individuals injured in a traffic-related accident caused by the policyholder. This includes medical bills, pain and suffering, lost wages, and even funeral costs. On the other hand, property damage liability coverage pays for any damage caused to another person's property, such as vehicles, fences, buildings, or government infrastructure. It may also cover personal belongings and provide a rental car for the other driver if needed.

While UberEats provides some liability coverage for its drivers, it is important for them to have their own personal auto insurance policy that meets the minimum requirements of their state. This ensures that they are adequately protected in case of an accident, as UberEats' coverage may not be sufficient on its own.

Uber Eats insurance cost

Uber Eats does offer insurance for its drivers, but it is limited to third-party liability coverage while drivers are active on the app. This means that Uber Eats insurance only covers injuries and damages to the other driver and their vehicle. It does not cover the driver's injuries or property damages.

Therefore, to drive for Uber Eats, you must have a personal auto insurance policy that includes your state's minimum auto insurance requirements. This personal policy will need to cover comprehensive and collision coverage to ensure your car is covered by Uber Eats insurance in the event of an accident.

Uber Eats does not charge drivers for the liability coverage it includes, but drivers will need to buy a separate rideshare insurance policy. The cost of this insurance depends on the provider chosen, with rates ranging from $2 to $27 per month.

It is important to note that Uber Eats will ask for insurance documents to be submitted to your account before allowing you to drive for them. Additionally, some insurance companies may require you to purchase commercial coverage or rideshare coverage due to the difference in risk assessment between personal and business use of a vehicle.

• Uber Eats insurance only covers third-party liability while the driver is active on the app.
• A personal auto insurance policy is required to meet state minimum coverage requirements and protect the driver's vehicle and injuries.
• Comprehensive and collision coverage on the personal policy is necessary for Uber Eats insurance to cover car damages.
• The cost of rideshare insurance varies by provider, with rates ranging from $2 to $27 per month.
• Uber Eats requires insurance documents to be submitted before allowing drivers to use the platform.
• Commercial coverage or rideshare coverage may be required by some insurance companies due to the increased risk associated with business use of a vehicle.

Insurance options for Uber Eats drivers

If you're considering becoming an Uber Eats driver, you'll need to know about the insurance requirements. Here's a detailed overview of the insurance options available to Uber Eats drivers.

Uber Eats Insurance Requirements

Uber Eats requires its drivers to have a personal auto insurance policy that meets the minimum coverage requirements in their state. This policy must be in the driver's name and cover the vehicle used for Uber Eats deliveries. Uber Eats will request proof of insurance, a copy of your driver's license, and vehicle registration during the sign-up process.

Uber Eats Provided Insurance

Uber Eats does provide commercial insurance for its drivers, but it is limited and meant to supplement a driver's existing coverage. The Uber Eats insurance coverage only applies when the app is on, and the driver is waiting for or en route to a delivery. The coverage limits vary depending on the driver's activity.

When waiting for a delivery, Uber Eats offers third-party liability limits of $50,000 in bodily injury per person, $100,000 in bodily injury per accident, and $25,000 in property damage per accident. When en route to a delivery, the coverage includes third-party liability of $1,000,000 and comprehensive and collision coverage, provided the driver has these coverages on their personal policy.

Additional Insurance Options for Uber Eats Drivers

It is essential to note that Uber Eats insurance will not cover accidents that occur when running personal errands or driving for reasons unrelated to Uber Eats. Therefore, Uber Eats drivers may want to consider the following additional insurance options:

• Rideshare coverage: This can be purchased from your personal auto insurance company if they offer coverage for delivery driving. It is a relatively inexpensive add-on, typically increasing premiums by 15-20%.
• Switch to a rideshare-friendly insurance company: If your current insurer does not offer rideshare coverage for Uber Eats, consider switching to a company that does, such as State Farm or Allstate.
• Buy a commercial car insurance policy: A commercial insurance policy is a good option if you cannot find rideshare insurance that covers delivery driving. However, this option is significantly more expensive, costing $1,200 to $2,400 or more per year.
• Uber Eats Supplemental Personal Injury Protection (PIP): Uber Eats offers optional PIP coverage for medical expenses and disability benefits. This coverage costs $0.024 per mile driven, and you can enrol or unenrol at any time.

Final Thoughts

While Uber Eats does provide some insurance coverage for its drivers, it is important to ensure you have the necessary personal insurance and any desired additional coverage to protect yourself fully. Review the options available and choose the ones that best fit your needs and budget.

Pros and cons of Uber Eats auto insurance

Pros:

• Uber Eats auto insurance ensures coverage during delivery activities, providing peace of mind and protection against potential liabilities.
• It complies with Uber Eats' insurance requirements, preventing potential issues with the platform.

Cons:

• Uber Eats auto insurance only provides liability coverage and does not pay for drivers' injuries or property damages.
• Limited coverage from personal auto insurance may leave drivers exposed to potential financial risks if an accident occurs during delivery.
• Dedicated commercial auto insurance, specialised rideshare insurance, and delivery driver auto insurance policies offer additional benefits specific to Uber Eats drivers, but monthly rates for these policies may be higher than personal auto insurance.
• While delivering for Uber Eats, drivers may need to purchase additional insurance coverage, impacting their overall profitability.

Frequently asked questions