Auto Insurance For Uber: What You Need To Know

If you're a rideshare driver, it's important to understand the insurance coverage you'll need. While Uber does offer insurance for its drivers, it's not always enough to cover all eventualities, and you may need to purchase additional rideshare insurance. This is because personal insurance policies typically don't cover ridesharing services, and commercial insurance may not cover ridesharing or personal use.

Rideshare insurance is a hybrid policy that covers ridesharing drivers when they're on the job. It fills the gap between your personal auto insurance and the commercial auto insurance provided by your rideshare employer. It's important to note that rideshare insurance is not a legal requirement, but it can provide valuable protection in the event of an accident.

Uber's insurance policy covers you when the app is running and you are working. It offers $1 million in third-party liability coverage and uninsured/underinsured motorist coverage. However, there are coverage gaps, and you may need to add a rideshare endorsement to your car insurance policy to ensure full protection.

The cost of rideshare insurance varies depending on your location and insurer, but it is generally cheaper than commercial auto insurance. It can cost as little as $10 per year and up to $350 per year.

In summary, if you're considering becoming an Uber driver, it's important to review your insurance options carefully to ensure you have the right coverage in place.

Uber's insurance coverage for drivers

Ubers Insurance Coverage for Drivers

Uber offers its drivers insurance coverage, known as Driver-Partner Insurance, which meets or exceeds the required coverage in most states. However, it is important to note that Uber's insurance policy only covers drivers when the app is running and they are working. When offline, a driver's personal auto insurance policy is their primary coverage.

Coverage When Offline

Drivers must maintain a personal automobile insurance policy with mandatory minimum limits and provide proof of this insurance to drive with Uber. Coverage to repair a driver's car when en route to or on a trip is contingent on their personal insurance including comprehensive and collision coverage.

Coverage When Online and Available for a Trip

Uber provides third-party liability insurance that covers the cost of injuries or damage in the following amounts:

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

Depending on the state, Uber may also provide additional coverage, including:

• 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 who is at fault
• Medical payments coverage, regardless of who is at fault

Coverage When En Route or On a Trip

Uber maintains comprehensive insurance for ridesharing, including:

• $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 of repairing a driver's car, up to the actual cash value, with a $2,500 deductible, contingent on the driver's personal insurance including comprehensive and collision coverage

Optional Coverage

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

Commercial Drivers

Commercial drivers using a commercial vehicle, such as a licensed for-hire vehicle, limousine, or taxi, must have their own commercial insurance to drive with Uber.

Filling the Gaps

Uber's insurance coverage has several gaps, and drivers may need to add a rideshare endorsement to their car insurance policy to ensure full protection. A driver's personal auto insurance policy only covers their vehicle's personal use, and commercial insurance is required if using the vehicle for business.

Rideshare insurance is a specialized type of insurance that bridges the gap between a driver's personal auto policy and Uber's coverage. It is a cheaper alternative to commercial auto insurance, costing around $10 to $350 per year, depending on location and insurer.

State Requirements

It is important to note that insurance requirements may vary by state. For example, California state laws require additional liability insurance coverage for drivers of transportation companies any time the app is on, with stricter minimum requirements than regular drivers.

Supplemental Policies

While Uber provides insurance coverage for its drivers, it may be minimal and drivers may need to supplement these policies to ensure adequate coverage. Without sufficient coverage, drivers may be responsible for out-of-pocket costs in the event of an accident.

In summary, while Uber does provide insurance coverage for its drivers, it is important for drivers to understand the limitations and gaps in this coverage. Supplemental insurance, such as rideshare insurance or a commercial policy, may be necessary to ensure full protection.

Uber's insurance coverage for riders

Uber's insurance policy covers riders in several ways. Firstly, it offers $1 million in third-party liability coverage to protect riders against accidents while en route to pick up passengers or during transportation. This includes uninsured/underinsured motorist coverage, which applies if the driver at fault is uninsured or underinsured. Secondly, Uber provides comprehensive and collision insurance to cover repairs or replacement of a rider's vehicle, up to its actual cash value, regardless of who is at fault. This is contingent on the driver having comprehensive and collision coverage on their personal auto insurance policy. Thirdly, depending on the state, Uber may offer additional coverage for riders, including personal injury protection and medical payments coverage, regardless of who is at fault. This includes medical expenses and lost wages. Finally, in the event of an accident, riders can report it directly to Uber via their app or website.

Uber's insurance requirements for drivers

Ubers Insurance Requirements for Drivers

Uber offers its drivers insurance, but it is not comprehensive and only applies in certain situations. Uber drivers must also have their own personal car insurance policy and, in some cases, commercial insurance.

Uber Driver Insurance

Uber driver insurance covers Uber drivers and their passengers when they are actively using the Uber app. This insurance is automatic and free for drivers. However, it does not cover everything, and drivers are only covered when they are active on the app and/or driving passengers.

Commercial Insurance

Commercial insurance is required if you are using your vehicle for business purposes. This is different from a rideshare endorsement, which adds to your personal policy. Commercial insurance protects you only when you are working, whereas your personal policy covers you when driving for non-work reasons.

Commercial insurance can be more expensive than personal car insurance, but you may be able to bundle it with your personal car insurance to get a better deal. Commercial insurance covers:

• Property damage
• Bodily injury liability coverage
• Medical payments
• Uninsured motorists
• Comprehensive and collision insurance

Insurance Requirements

Uber drivers must maintain automobile liability insurance on all vehicles they operate while driving for Uber. The insurance limits must be equal to or greater than the minimum requirements for the state in which they are driving.

Filling the Gaps

Rideshare insurance endorsements can fill in the gaps when Uber insurance doesn't cover damages. Most insurance companies offer an add-on or endorsement to your personal auto policy, rather than standalone rideshare car insurance.

Cost of Insurance

The cost of commercial auto insurance for Uber drivers can be between $1,200 and $2,400 per year. A cheaper alternative is rideshare insurance, which costs between $10 and $350 per year, depending on your location and insurer.

Cost of rideshare insurance

Rideshare insurance is a specific type of commercial auto insurance designed for people who drive for rideshare or food delivery services such as Uber, Lyft, DoorDash, and Postmates. It fills the gap between your personal auto insurance and the commercial auto insurance provided by your rideshare employer.

Rideshare insurance functions as a form of commercial insurance, filling in coverage gaps specific to the needs of those in the rideshare industry. It usually comes as an endorsement to one's existing car insurance policy.

Rideshare insurance may not be legally required, as you will already have the state-mandated minimums while driving for one of these services. However, since minimum liability coverage does not apply during the "app-on" period, you will need commercial coverage.

Rideshare insurance addresses the coverage gaps left by existing holes in minimal liability insurance, rideshare company insurance, and standard commercial insurance. It extends specific coverages on the personal policies of rideshare drivers so they are covered during the "app-on" period.

Companies like Geico, Progressive, USAA, and Allstate offer rideshare insurance for as low as $6 per month, with most drivers paying under $30 per month. The cost depends on your insurance profile, including factors such as your driving record and location.

How to Get Rideshare Insurance

Since most providers do not offer rideshare-only auto insurance coverage, you will likely need to purchase it as a policy add-on or endorsement to your existing policy. Contact your insurer to ask about coverage options.

How to get rideshare insurance

If you're a rideshare driver, it's important to have the right insurance coverage to ensure you're protected in the event of an accident. Here's a guide on how to get rideshare insurance:

Understand the Different Types of Insurance

Firstly, it's crucial to understand the different types of insurance involved in ridesharing. There are typically three types of insurance policies that come into play: your personal auto insurance, the ridesharing company's insurance (such as Uber or Lyft), and specialised rideshare insurance.

Review Your Personal Auto Insurance Policy

Before you start driving for a ridesharing company, review your personal auto insurance policy. Contact your insurance provider and inform them of your plans to become a rideshare driver. Find out what your current policy covers and what exclusions or limitations it may have for ridesharing activities. Some personal auto insurance policies explicitly exclude commercial activities like ridesharing, so it's important to clarify this with your insurer.

Understand the Ridesharing Company's Insurance Coverage

Ridesharing companies like Uber and Lyft typically provide some level of insurance coverage for their drivers. However, this coverage may vary and is often minimal, only meeting the state's minimum requirements. For example, Uber provides insurance that covers you when you're en route to or on a trip, but it may not cover certain situations such as rental cars or maintenance. Review the insurance details provided by the ridesharing company to understand what is and isn't covered.

Consider Specialised Rideshare Insurance

To fill in any gaps in coverage, you may want to consider purchasing specialised rideshare insurance. This type of insurance is designed specifically for rideshare drivers and bridges the gap between your personal auto policy and the coverage provided by the ridesharing company. It ensures that you, your vehicle, and your savings are protected during all periods of your work, including the time spent waiting for ride requests. Major insurance carriers like Progressive, Allstate, and Farmers offer rideshare insurance, but availability and costs may vary by state.

Compare Quotes and Choose a Policy

If you decide to purchase specialised rideshare insurance, it's important to compare quotes from multiple insurance providers. Get quotes from different companies, review the coverage details, and choose a policy that best suits your needs and budget. Consider factors such as liability limits, comprehensive and collision coverage, deductibles, and any additional benefits offered.

Maintain Proper Insurance Documentation

Once you've obtained the necessary insurance coverage, make sure to keep proper documentation with you while driving. In the event of an accident, you may be required to provide proof of both your personal and commercial insurance policies. Stay organised and keep your insurance information easily accessible.

By following these steps, you can ensure that you have the appropriate rideshare insurance coverage and are protected in the event of any incidents while working as a rideshare driver.

Frequently asked questions