Uber's Commercial Auto Insurance Costs

Commercial auto insurance for Uber drivers can cost $1,200 to $2,400 per year, or even more. However, a cheaper alternative is rideshare insurance, which costs between $10 and $350 per year, depending on the location and insurer. Uber also provides its drivers with some level of commercial insurance whenever their app is on. When a ride request has been accepted and the driver is carrying passengers, Uber's full insurance coverage applies, including $1 million in liability coverage and uninsured/underinsured motorist coverage.

Uber's commercial insurance coverage

Ubers Commercial Insurance Coverage

Uber offers commercial insurance coverage to its drivers, but it is important to note that this coverage has certain limitations and may not apply in all situations. Here is a detailed overview of Uber's commercial insurance coverage:

When Uber's Commercial Insurance Applies:

Levels of Coverage:

Uber provides different levels of insurance coverage depending on the situation:

• Period 1: Waiting for Ride Request: During this period, Uber offers third-party liability coverage with relatively low limits. The coverage includes $50,000 in bodily injury per person, up to $100,000 in bodily injury per accident, and $25,000 in property damage per accident.
• Period 2 and 3: Accepted Ride Request to Passenger Exit: Once a ride request is accepted, a higher level of coverage kicks in. Uber offers $1 million in third-party liability coverage and uninsured/underinsured motorist coverage. Additionally, they provide comprehensive and collision insurance up to the car's actual cash value, subject to a $2,500 deductible.

Provincial/State Variations:

The specific coverage provided by Uber may vary depending on the province or state. For example, in Ontario, Quebec, Alberta, and Nova Scotia, Uber provides $2 million in third-party liability coverage and uninsured/underinsured motorist coverage, along with contingent collision and comprehensive coverage with a $2,500 deductible. In contrast, in Saskatchewan, Uber provides additional liability insurance of $2 million, which applies if damages exceed $200,000.

Gaps in Coverage:

It is important to note that Uber's commercial insurance coverage has some gaps. Firstly, it does not cover the period when the app is closed. Secondly, Uber's coverage may not include comprehensive and collision coverage during Period 1, leaving drivers vulnerable if an accident occurs while waiting for a ride request.

Personal Insurance and Supplemental Coverage:

Due to the gaps in Uber's commercial insurance coverage, it is recommended that drivers maintain their own personal car insurance policy. Additionally, drivers may need to purchase supplemental commercial auto insurance or add a rideshare endorsement to their personal policy to ensure they are fully protected. This is especially important as personal insurance policies typically exclude commercial activities like ridesharing.

In summary, while Uber does provide commercial insurance coverage for its drivers, it is important for drivers to understand the limitations and supplement it with appropriate personal and/or commercial insurance to ensure they are fully protected in all situations.

Personal insurance policies

If you're a rideshare driver, it's important to know that your personal auto insurance policy only covers your vehicle's personal use. If you're driving for Uber, your personal insurance won't cover you as it's considered business use. Your insurer can even cancel your policy if they find out you've been using your car for business without declaring it. Therefore, it's important to inform your insurance company of your plans before you start driving for Uber.

Uber does provide its own rideshare insurance coverage, but this is not enough on its own. Uber's insurance policy only covers you when the app is running and you are working for Uber. It does not cover you when the app is closed. During these times, your personal auto policy provides coverage.

Uber's insurance coverage varies depending on whether you are waiting for a ride request, en route to pick up a passenger, or travelling with a passenger in your car.

When the Uber app is on, but you are waiting for a ride request, Uber 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 is Period 1.

Period 2 begins when you have accepted a ride request and are on your way to pick up your passenger. During this time, Uber provides $1 million in third-party liability coverage, as well as uninsured/underinsured motorist coverage.

Period 3 begins when you have the Uber app open and are driving your customer to their destination. During this time, Uber's insurance coverage is the same as in Period 2, but it also extends to the passenger.

To ensure you are fully protected, you should consider purchasing an additional policy feature called "rideshare coverage" or a "rideshare endorsement". This will extend your personal policy while you're working but haven't accepted a ride request yet. Rideshare insurance typically costs $10 to $350 per year, depending on your location and insurer.

Uber's insurance coverage gaps

Ubers Insurance Coverage Gaps

Uber provides its drivers with commercial insurance whenever their app is on. However, the level of coverage depends on whether the driver has accepted a ride request or is carrying passengers. When a driver is waiting for a ride request, they are covered by Uber's insurance, but only for liability, and it is limited to $100,000 for bodily injury and $25,000 for property damage per accident. This means that there are gaps in the insurance coverage provided by Uber, which could leave drivers vulnerable in the event of an accident.

Ridesharing companies like Uber do not provide full-coverage insurance to their drivers in the event of an accident. While Uber's commercial insurance policy kicks in once a driver accepts a fare or is transporting a passenger, the coverage is limited when the driver is waiting for a ride request. This period, known as "Period 1", is when the driver's rideshare app is on, but they haven't accepted a fare yet. During this time, Uber's commercial policy only provides limited insurance coverage, leaving drivers potentially unprotected.

Personal auto insurance policies typically do not cover commercial driving activities, such as transporting passengers for hire. This means that Uber drivers cannot rely on their personal auto insurance to fill the gaps in Uber's coverage. As a result, drivers may have to bear the cost of repairing any damage to their vehicle if an accident occurs during Period 1. Additionally, the TNC (Transportation Network Company) liability coverage for bodily injury or death is capped at $50,000 per person and $100,000 per accident during Period 1, with only $30,000 available for property damage resulting from an accident.

To address these coverage gaps, drivers can purchase rideshare insurance, which is a specialized type of insurance that bridges the gap between personal auto policies and the coverage provided by ridesharing companies. Rideshare insurance offers additional protection for the driver, their vehicle, and their savings in the event of an accident during Period 1. It is important for drivers to carefully review the details of their insurance policies and understand the limitations of Uber's coverage to ensure they have adequate protection at all times.

Rideshare insurance

Commercial auto insurance for Uber drivers can cost $1,200 to $2,400 or more per year. A cheaper alternative is rideshare insurance, which costs $10 to $350 per year, depending on your location and insurer.

Uber provides its drivers with some level of commercial insurance whenever their app is on. When you've accepted a ride request and while you're carrying passengers, you are under Uber's full insurance coverage. This includes $1 million to $2 million in liability coverage, as well as uninsured/underinsured motorist coverage. It also includes comprehensive and collision coverage if you carry comprehensive and collision on your personal policy. However, Uber's coverage is minimal while you're waiting for a request. During wait times, you're covered by liability insurance only, which is limited to $100,000 for bodily injury and $25,000 for property damage per accident.

Companies like Progressive, Farmers, and Mercury offer rideshare insurance. This insurance can be added to your personal auto policy to provide coverage when you're logged into the rideshare company's app but haven't accepted a ride. It typically covers medical expenses and damage caused to others if an accident is your fault, but it's important to carefully review what each company covers as it can vary.

Commercial auto insurance

Uber's insurance coverage varies depending on the region. In Ontario, Quebec, and Alberta, for example, Uber maintains commercial auto insurance on the driver's behalf during the time that they are available through the Uber app but have not yet accepted a trip. When applicable, the insurance provides $1 million of third-party liability coverage and uninsured/underinsured motorist coverage. Once a trip is accepted, the coverage increases to $2 million of liability and uninsured/underinsured motorist coverage, as well as contingent collision and comprehensive coverage with a $2,500 deductible.

In British Columbia, a driver's personal auto insurance will apply when using their vehicle for personal use and while driving on the Uber app but prior to accepting a ride request. Once a ride request is accepted, Uber maintains commercial auto insurance on the driver's behalf, including $2 million in third-party liability limits and contingent physical damage coverage with a $2,500 deductible.

Uber does not maintain insurance to cover Uber Black and Uber SUV as the drivers are required to maintain their own commercial insurance.

A cheaper alternative to commercial auto insurance is rideshare insurance, which costs $10 to $350 per year, depending on location and insurer. Almost all of the major carriers offer rideshare insurance, but it is not available in all states. If rideshare insurance is not available, drivers may need to purchase full commercial auto insurance.

Frequently asked questions