Insuring Yourself As An Uber Driver: What You Need To Know

If you're an Uber driver, it's important to understand how insurance works to ensure you're covered in the event of an accident. Uber provides insurance for its drivers, but the coverage varies depending on whether you're online and available, en route to pick up a passenger, or on a trip. It's essential to have a clear understanding of Uber's insurance policy and how it interacts with your personal car insurance. While Uber offers coverage, it may not be sufficient for all scenarios, and you may need to consider additional insurance options, such as a rideshare endorsement or commercial auto insurance. Let's delve into the details of insurance for Uber drivers and explore the steps you can take to ensure comprehensive protection while on the road.

Uber's insurance requirements vary by state and vehicle type

Uber drivers need to meet specific insurance requirements, which vary depending on the state and vehicle type. These requirements are subject to local laws and regulations, and Uber itself maintains automobile liability insurance for its drivers in the US.

In states like California and New York, there are specific insurance mandates for Transportation Network Companies (TNCs), which include ridesharing services like Uber. For example, California requires TNCs to have at least $1 million per incident of uninsured/underinsured motorist (UM/UIM) coverage when a passenger is in the vehicle. On the other hand, New York State has a lower UM/UIM requirement of $50,000 per incident for TNC trips.

Additionally, some states, such as Nevada and New Jersey, mandate higher liability coverage for TNC trips. In these states, $1.5 million in liability coverage is required, which is significantly more than the requirement for personal vehicles.

The type of vehicle used for Uber services also influences the insurance requirements. For instance, if you are a commercial driver using a licensed for-hire vehicle, limousine, or taxi, you must carry your own commercial insurance. This is separate from the insurance that Uber provides and ensures you are adequately covered while driving for Uber.

It is important to note that Uber partners are responsible for maintaining their own insurance policies in compliance with the regulations of their state and locality. While Uber provides some liability coverage, it may not cover your vehicle, and additional insurance can provide greater protection in the event of an accident. Therefore, it is recommended to explore insurance options specifically designed for rideshare drivers, as these can offer more comprehensive coverage.

Uber drivers need to maintain their own insurance

Uber requires all drivers to have car insurance, but the specific insurance requirements vary by jurisdiction. For example, if you are a commercial driver using a commercial vehicle, such as a licensed for-hire vehicle or taxi, you must have your own commercial insurance to drive with Uber. If you are an Uber Eats delivery driver using a car, motorbike, or scooter, you will need a Certificate of Motor Insurance.

Many personal auto insurers offer additional insurance for rideshare or delivery drivers, but this is not required to sign up to drive with Uber. It is important to be upfront with your insurance company about your vehicle being used for commercial purposes, as this will increase the risk of liability and may incur extra insurance charges.

Uber-approved insurers use Instadoc for easier document verification, and there are a limited number of these insurers. Some drivers, depending on their area, may need Uber-approved insurance.

Uber provides supplemental insurance coverage

Uber also offers Optional Injury Protection, which is completely optional and can be enrolled in or terminated at any time. This insurance product helps to manage risk and covers medical expenses and lost wages for you and your riders in the event of an accident. It also covers disability payments and survivor benefit payments for your family members. For less than $0.03 a mile, this insurance can provide peace of mind in case the unexpected happens.

In addition, Uber maintains commercial insurance on behalf of drivers, 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. Uber's third-party liability insurance covers the cost of injuries or damage in at least the following amounts: $50,000 per person and $100,000 per accident.

For repairs to your vehicle, as long as you maintain comprehensive and collision coverage on your personal auto insurance, and were en route or on a trip, the insurance that Uber maintains on behalf of drivers will apply. If applicable, this insurance goes toward repairs and replacement for your car up to its actual cash value. You must pay a $2,500 deductible before this coverage applies.

Uber-approved insurers offer specialist policies

One such insurer is Acorn Insurance, which offers private hire cover specifically designed for Uber partner drivers in the UK. Acorn Insurance is a trusted insurance partner of Uber and has over 40 years of experience in the industry. They provide an intuitive, effective private hire cover that addresses the unique risks Uber drivers may encounter, such as carrying pre-booked passengers, delivering food, or transporting parcels. With Acorn Insurance, Uber drivers can rest assured that their livelihood is protected, as vehicle issues can impact their earnings.

Another Uber-approved insurer is Clegg Gifford, which provides award-winning claim services and specialises in private hire insurance for Uber drivers. They have been insuring the UK's taxi and private hire sector for over 70 years and are the oldest insurer of their kind in the UK. Clegg Gifford allows drivers to choose the type and level of cover they require, including third-party, third-party fire and theft, or fully comprehensive insurance.

In the UK, Kinetiq and INSHUR are also recognised as Uber-approved insurance providers. These companies offer policies tailored to Uber's requirements, ensuring that drivers meet the necessary insurance standards to operate on the platform.

Uber-approved insurers simplify the process of obtaining the necessary insurance for Uber drivers. By partnering with these specialists, drivers can be confident that they meet Uber's requirements and can quickly get on the road, focusing on providing safe and reliable services to their passengers.

Insurance implications in the event of an accident

As an Uber driver, you are required to have certain insurance coverages in place. The specific requirements vary by jurisdiction, but there are some general guidelines to follow.

Firstly, if you are a commercially licensed driver operating commercial vehicles such as black cars, limousines, or taxis, you must have your own commercial auto insurance. This is separate from the insurance that Uber maintains on behalf of its drivers.

Secondly, as required by law, you must maintain personal automobile insurance at the mandatory minimum limits and provide proof of this insurance to Uber. Many personal auto insurers offer additional insurance for rideshare drivers, but this is not required to sign up to drive with Uber.

In the event of an accident, there are several things you should do to ensure you are covered by the correct insurance policies. Firstly, report the accident through the Uber app as soon as it is reasonable to do so. Take photos of any damage to the vehicles involved, including your own, and get the contact and insurance information of the other drivers and riders involved. It is also recommended to take photos of the accident location if it is safe to do so.

The insurance coverage that applies will depend on what the driver was doing when the crash occurred. If the driver is offline and not signed in to the Uber app, Uber's insurance does not apply, and the driver's personal car insurance is responsible for covering any damages or injuries. If the driver is signed in and waiting for a ride request, Uber offers limited liability coverage, providing up to $50,000 per person for injuries, $100,000 total per accident for injuries, and $25,000 for property damage. Once a driver accepts a ride request or has a passenger in the vehicle, Uber's full insurance coverage applies, including up to $1 million in third-party liability coverage.

If you have comprehensive and collision coverage on your personal auto insurance and were en route or on a trip, the insurance that Uber maintains on behalf of drivers will kick in to cover repairs and replacement for your car up to its actual cash value. You must pay a deductible before this coverage applies.

If you are injured in an accident while driving on the Uber platform, potential sources of recovery for your injuries may include the liability insurance of the other driver or Uber's uninsured/underinsured motorist (UM/UIM) coverage if another driver with insufficient insurance is responsible for the accident. Additionally, if you have purchased Optional Injury Protection, this coverage is available to you and your family members, covering disability payments, medical expenses, and survivor benefit payments.

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