Understanding The Uber Insurance Policy: What You Need To Know

If you're an Uber driver, it's important to understand how auto insurance works to ensure you're fully protected. Uber offers its own rideshare insurance, but this only covers you when the app is running and you are working. This means you also need a personal auto insurance policy, as your personal policy only covers your vehicle's personal use.

Uber's insurance policy has different levels of coverage depending on whether you're waiting for a ride request, en route to pick up a passenger, or driving your customer to their destination. It's worth noting that Uber's coverage doesn't include repairs to your car, so you may want to consider additional insurance.

When it comes to personal auto insurance, it's important to be upfront with your insurance company about driving for hire, as some policies don't cover commercial driving. You should also check if you need a commercial driver's license, as requirements vary by state.

In summary, as an Uber driver, you need to have both rideshare insurance and a personal auto insurance policy to ensure you're fully covered.

Uber's insurance requirements for drivers

Uber drivers need to have personal auto insurance that satisfies the minimum requirements of their state. This is because most personal insurance policies don't cover rideshare services, which are considered a form of commercial activity.

Uber drivers should also be aware that their auto insurance company could deny a claim if they were in an accident while driving an Uber rider to their destination. They could also be dropped as a client if their insurance company finds out they are driving for a rideshare app.

Uber provides insurance for its drivers, but only in certain situations. Uber driver insurance covers drivers and their passengers when they are actively using the Uber app. It may also cover any damages caused to the driver, their passengers, or their car if they are not at fault, but the responsible party doesn't have insurance.

Uber driver insurance includes:

• Third-party liability coverage, which insures bodily injuries or damages caused to riders, people in other vehicles, pedestrians, or property. Coverage limits vary by state but are at least $1,000,000.
• Uninsured or underinsured motorist bodily injury coverage, which insures injuries to drivers and their riders if a covered accident occurs during an Uber trip, and another driver is at fault and doesn't have sufficient insurance. This insurance also applies in the case of a hit-and-run. Medical payments coverage or personal injury protection may also apply to healthcare, medical expenses, and funeral expenses if drivers and their riders are injured in a covered accident, regardless of who is at fault. Coverage limits vary by state.
• Contingent comprehensive and collision coverage, which provides physical damage coverage for a driver's car up to its actual cash value, regardless of who is at fault. There is a $2,500 deductible that the driver must pay before this coverage applies.

Uber's insurance coverage for drivers

Uber's insurance coverage for its drivers varies depending on the driver's location and whether they are online or offline.

Offline Coverage

When drivers are offline, their personal auto insurance policies are active and cover them. Uber requires drivers to maintain personal automobile insurance at mandatory minimum limits and provide proof of their insurance to drive and deliver with a vehicle with Uber.

Online Coverage

When drivers are 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
• $25,000 in property damage per accident

Depending on the state's laws, Uber may also provide additional coverage, such as:

• Coverage 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, regardless of fault
• Medical payments coverage, regardless of fault

En Route or On a Trip Coverage

When drivers are en route or on a trip, Uber maintains comprehensive insurance for ridesharing and deliveries, including:

• At least $1,000,000 for property damage and injuries to riders and third parties in an accident where the driver is at fault
• Coverage for the cost to repair the driver's car, up to its actual cash value, with a deductible, provided the driver has comprehensive and collision coverage on their personal insurance

Optional Coverage

Uber also offers optional coverage for extra protection, such as the Optional Injury Protection, which covers medical expenses, disability payments, and survivor benefits if a driver is injured in an accident.

Commercial Drivers

Commercial drivers using licensed vehicles, such as taxis or limousines, must have their own commercial insurance to drive with Uber.

State-Specific Requirements

It is important to note that insurance requirements may vary by state. For example, in California, drivers must have rideshare insurance as soon as they turn on the rideshare app, and the minimum insurance requirements differ for each period of the ride.

Additional Considerations

While Uber provides insurance coverage for its drivers, it is essential for drivers to review their specific state's requirements and understand the limitations of the provided coverage. Additionally, drivers should consider the benefits of purchasing additional rideshare insurance to fill any gaps in coverage and ensure they are adequately protected.

Uber's insurance coverage for riders

Uber's insurance policy covers riders in several ways. Firstly, it provides third-party liability coverage of up to $1 million, which protects riders against covered accidents while the driver is en route to pick them up or while they are being transported. This coverage also includes uninsured/underinsured motorist bodily injury protection, which covers riders if they get into an accident caused by an uninsured or underinsured driver.

In addition, Uber's insurance policy includes personal injury protection, which covers medical expenses and lost wages for riders, regardless of who is at fault in the accident. This coverage is particularly important for riders who may not have their own medical insurance or may face financial hardship due to their injuries.

Furthermore, Uber's insurance also offers medical payments coverage for riders, regardless of who is at fault in the accident. This can help ensure that riders receive the necessary medical treatment without worrying about the cost.

It is important to note that Uber's insurance coverage for riders may vary depending on the state and local regulations, and there may be certain limitations or exclusions. Riders should carefully review the terms and conditions of Uber's insurance policy to understand the specific coverage provided in their region.

Uber's insurance coverage for accidents

Uber maintains insurance for its drivers, but the type of coverage depends on several factors, including who was at fault, whether the driver was offline, online, en route, or on a trip, and the driver's personal insurance policy.

Coverage when a driver is offline

A driver's personal auto insurance covers them while they are offline. Uber requires drivers to maintain personal automobile insurance at mandatory minimum limits and provide proof of their insurance to drive and deliver with a vehicle for Uber.

Coverage when a driver is online and available for a trip

If a driver is at fault and another person gets hurt or their vehicle is damaged, Uber's third-party liability insurance covers the cost of injuries or damage. This includes:

• $50,000 per person and $100,000 per accident for injuries
• $25,000 in property damage per accident

Depending on the state, Uber may maintain additional coverage, including:

• Coverage for the driver and riders 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 riders, regardless of who is at fault
• Medical payments coverage for the driver and riders, regardless of who is at fault

Coverage when a driver is en route or on a trip

Uber maintains comprehensive insurance for ridesharing and deliveries, including:

• Insurance that covers at least $1,000,000 for property damage and injuries to riders and third parties in an accident where the driver is at fault
• Insurance that covers the cost to repair the driver's car, up to the actual cash value, with a $2,500 deductible, provided the driver's personal insurance includes comprehensive and collision coverage. This extra insurance protects the car, regardless of who is at fault.

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 covers earnings replacement, accident medical expenses, and benefits for the driver's family.

What to do in the event of an accident

If a driver is involved in an accident, they should:

• Ensure everyone involved is okay and contact the police and paramedics if necessary
• Take photos of any damage to the vehicles involved and get the contact and insurance information of other drivers and riders
• Report the crash through the Driver app or by contacting Uber's support staff

Uber's claims support team will guide the driver through the claims process and provide information on the specific insurance coverage applicable to the accident.

Uber's insurance coverage for vehicle damage

Uber maintains commercial auto insurance to protect drivers in the event of an accident while making a delivery or transporting passengers. The company's insurance coverage depends on several factors, including who was at fault, whether the driver was offline, online, en route, or on a trip, and the driver's personal insurance policy.

When the app is closed and the driver is offline:

Uber does not provide comprehensive or collision coverage during this period. The driver's personal auto insurance policy is responsible for covering any vehicle damage or repairs. It is important to note that personal insurance does not typically cover rideshare drivers because it is considered business use. Therefore, separate rideshare coverage or a commercial policy may be necessary to ensure full protection.

When the app is open and the driver is online:

Uber's insurance provides liability coverage at certain points during the trip, known as Period 1. During this period, Uber offers third-party liability coverage of $50,000 in bodily injury per person and up to $100,000 in bodily injury per accident, with $25,000 in property damage per accident. However, the company does not offer comprehensive and collision coverage during this phase.

When the driver has accepted a ride request and is en route to pick up a passenger (Period 2):

Uber's liability coverage increases significantly. The company offers $1 million in third-party liability coverage if the driver gets into a covered accident on the way to pick up passengers. This coverage also extends to Period 3 when the passenger is in the car.

Collision and Comprehensive Coverage:

Uber offers comprehensive and collision insurance that covers up to the actual cash value of the vehicle. However, this coverage comes with a $2,500 deductible, which the driver must pay out of pocket before Uber's coverage takes effect. Additionally, this coverage is contingent on the driver maintaining comprehensive and collision coverage on their personal auto insurance policy.

It is important to note that Uber's coverage levels, especially for liability, may not meet the recommended thresholds by insurance experts. Drivers should carefully review Uber's insurance policy and consider purchasing additional coverage or a separate rideshare insurance policy to ensure they are fully protected in the event of an accident.

Frequently asked questions