Uber's Insurance: Common Carrier?

Uber is considered a common carrier in California, meaning it falls under a special set of laws and must provide a high standard of care in transporting people safely. Uber offers its own rideshare insurance coverage, but drivers should also have their own personal car insurance policy to ensure they are fully protected. Uber's insurance policy only covers drivers when the app is running and they are working. When the app is closed, a driver's personal auto policy provides coverage. Uber also offers optional injury protection insurance, which provides additional peace of mind for drivers in the event of an accident.

Uber's insurance coverage for drivers

Uber offers its drivers insurance coverage, but it is recommended that drivers also have their own personal car insurance policies to ensure they are fully protected. This is because Uber's insurance policy only covers drivers when the app is running and they are working.

When the app is open, Uber's insurance provides liability coverage at certain points during a trip. When the app is closed, a driver's personal auto policy provides coverage.

Period 1:

The Uber app is on, but the driver is waiting for a ride request. During this period, Uber's liability limits are relatively low, and the company doesn't offer comprehensive and collision coverage. The liability coverage offered is $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:

The driver has accepted a ride request and is on their way to pick up a passenger. During this period, Uber offers $1 million in third-party liability coverage.

Period 3:

The passenger is in the car. This period ends when the passenger exits the vehicle. During this period, Uber offers $1 million in third-party liability coverage.

Uber also offers uninsured/underinsured motorist coverage for drivers and passengers if the driver gets into an accident and the other driver is at fault and uninsured or underinsured.

Additionally, Uber provides comprehensive and collision insurance that will cover up to the car's actual cash value, with a $2,500 deductible. This means that drivers will have to pay $2,500 out-of-pocket before Uber's coverage kicks in.

It is important to note that Uber's insurance coverage depends on various 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.

In most US states, Uber drivers can also purchase Optional Injury Protection to cover additional medical expenses in case of an accident.

Furthermore, drivers who rent a vehicle through Uber's vehicle solutions partners should know that all rental offers include insurance, and some partners offer the option to purchase additional insurance.

Lastly, commercially licensed and insured drivers using a commercial vehicle, such as a licensed for-hire vehicle, black car, limousine, livery vehicle, or taxi, must have their own commercial insurance to drive with Uber.

Personal insurance policies for rideshare drivers

Firstly, it is important to understand the different phases of a rideshare trip and the corresponding insurance coverage. When the Uber app is off, your personal auto insurance policy is in effect. Once the app is turned on and you are waiting for a ride request, Uber provides third-party liability coverage of $50,000 per person for bodily injury, $100,000 per accident for bodily injury, and $25,000 per accident for property damage. However, your personal insurance policy must also include rideshare coverage or be a commercial policy to be applicable during this phase.

After accepting a ride request and while en route to pick up passengers, Uber's insurance coverage becomes more comprehensive. They offer $1 million in third-party liability coverage and uninsured/underinsured motorist coverage for you and your passengers if the at-fault driver is uninsured or underinsured. Additionally, Uber provides comprehensive and collision insurance up to the actual cash value of your vehicle, with a $2,500 deductible.

During the final phase of the trip, when passengers are in the vehicle, Uber's insurance coverage remains the same as the previous phase. However, it is important to note that Uber's coverage only applies when you are actively using the app, either waiting for a ride request, en route to pick up passengers, or transporting them. At all other times, your personal insurance policy is responsible for providing coverage.

Therefore, it is crucial for rideshare drivers to have a personal insurance policy that includes rideshare coverage or a commercial policy. Failing to disclose your rideshare activities to your insurer can result in policy cancellation. The cost of rideshare insurance varies depending on factors such as location, driving record, and coverage limits, but it typically ranges from $119 to $300.

Some major insurance providers that offer rideshare insurance include State Farm, Farmers, Progressive, Allstate, and Mercury. It is recommended to compare quotes from multiple insurers to find the best coverage and rates for your specific needs.

Uber's insurance coverage for passengers

When the Uber Driver is Offline:

The driver's personal insurance coverage is in effect. This means that any accidents or incidents that occur while the driver is not logged into the Uber app will be covered by their personal insurance policy.

When the Uber Driver is Logged into the App and Available to Accept Rides:

• Uber provides statutory accident benefits, uninsured motorist coverage, and third-party liability coverage with a limit of $1 million.
• Family protection coverage (OPCF 44R) with a limit of $1 million is also included.
• Collision and comprehensive coverages are provided with a $1,000 deductible. This means that if the driver is at fault in an accident, they will have to pay the first $1,000 of the repair costs out of pocket, and Uber's insurance will cover the rest, up to the vehicle's actual cash value.

When the Uber Driver Accepts a Ride Request and is on the Way to Pick Up a Passenger:

• The coverage limits increase, with third-party liability coverage and family protection coverage both having a limit of $2 million.
• The other coverages remain the same as when the driver is logged in and available but has not yet accepted a ride request.

When the Uber Driver is Transporting Passengers:

• The coverage limits remain the same as when the driver is en route to pick up a passenger, with a $2 million limit on third-party liability and family protection coverage.
• Statutory accident benefits, uninsured motorist coverage, collision coverage, and comprehensive coverage are also included to protect passengers in the event of an accident.

It is important to note that Uber's insurance coverage for passengers may vary depending on the country and local regulations. For example, in Georgia, the minimum uninsured motorist coverage required for rideshare companies was reduced from $1 million to $100,000 per person in 2023.

Additionally, Uber's insurance coverage is designed to complement the driver's personal insurance policy. While Uber provides coverage for liability claims, passengers' ability to collect compensation for injuries may be impacted by the driver's insurance coverage. Therefore, it is recommended that Uber drivers have adequate personal car insurance and a specific policy for ridesharing, as many insurance companies exclude ridesharing from their standard policies.

Rideshare insurance and its cost

Rideshare insurance is a type of insurance that covers you and your vehicle when driving for a ridesharing service such as Uber. It is important to note that personal insurance policies do not typically cover ridesharing, as it is considered business use. Therefore, if you are a rideshare driver, it is essential to have separate rideshare insurance to ensure you are fully protected.

Uber's Insurance Coverage

Uber offers its own insurance coverage for rideshare drivers, known as Driver-Partner Insurance. This policy covers drivers when the app is running and they are working for Uber. It provides different levels of coverage depending on whether the driver is waiting for a ride request (Period 1), en route to pick up a passenger (Period 2), or has a passenger in the car (Period 3).

During Period 1, 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. During Periods 2 and 3, Uber offers $1 million in third-party liability coverage and uninsured/underinsured motorist coverage for the driver and passengers. Additionally, Uber offers comprehensive and collision insurance to cover the cost of repairs to the driver's car, with a deductible of $2,500.

Cost of Rideshare Insurance

The cost of rideshare insurance can vary depending on several factors, but it is generally affordable. Most people can obtain it for less than $30 per month. In Florida, for example, the additional cost of rideshare insurance quoted by companies ranges from $6 to $25 per month, while Allstate offers it for $15 to $20 per year.

It is worth noting that some insurance companies offer rideshare insurance as an add-on to a personal car insurance policy, while others combine rideshare and personal auto insurance into a single hybrid policy. It is important to carefully review the coverage offered by each company, as costs can vary depending on the specifics of the policy.

Other Considerations

When considering rideshare insurance, it is essential to review the coverage periods and understand the gaps in coverage that may exist. For example, Uber's insurance policy does not cover drivers when the app is closed, so a separate rideshare policy or personal auto policy would be needed during those times.

Additionally, Uber's coverage levels, especially for liability, may not meet the recommended thresholds, leaving drivers with higher out-of-pocket costs in the event of an accident. Therefore, it may be beneficial to purchase additional liability coverage or a separate rideshare insurance policy to ensure adequate protection.

In conclusion, while Uber provides insurance coverage for its drivers, it is important for rideshare drivers to have their own rideshare insurance policy to ensure they are fully protected. The cost of this additional insurance is generally affordable and can provide valuable peace of mind in the event of an accident or incident.

Reporting accidents to Uber

Uber is committed to everyone's safety and has outlined steps to take in the event of an accident. Here is a detailed guide on reporting accidents to Uber:

Step 1: Check on Everyone Involved

The first step is to ensure the safety and well-being of everyone involved in the accident. If there are any injuries or significant damage, immediately contact emergency services, including the police and paramedics. It is important to obtain a police report number if one is provided.

Step 2: Document the Accident

The next step is to gather as much information and evidence as possible. Take photos of any damage to the vehicles involved, including your own. Get the contact and insurance information of the other drivers and riders involved in the accident. If possible, take photos of the accident location as well. It is important to document the scene thoroughly for insurance and reporting purposes.

Step 3: Report the Accident to Uber

There are multiple ways to report the accident to Uber:

• The easiest way is through the Driver app. Access the Safety Toolkit by tapping the blue shield symbol in the bottom left corner of the map, then select "Report a crash." You can report what happened and submit your claim directly through the app.
• Alternatively, you can speak with Uber's trained support staff. Go to the Help section of your app, choose "Safety," and then select the "Safety Incident Reporting Line." You can report the accident and receive assistance from their team.
• You can also submit a crash report online by filling out the Third Party Incident Notice on Uber's website.

It is important to complete the reporting process as soon as possible after the accident. Once your claim is submitted, a notification will appear on your Driver app homepage, directing you to the Crash Center. This is a valuable resource that provides information on contacting Uber's insurer, viewing the status of your claim, exploring rental car options, and more.

Step 4: Follow Up and Provide Information

After reporting the accident, Uber's claims support team will reach out to confirm everyone's well-being and gather any additional information needed. They will guide you through the claims process and crash reporting to the insurance coverage provider in your state. Unless you have a relevant endorsement on your personal auto policy, there is no need to report the accident to your personal insurance company separately.

Additional Information for Riders and Third Parties

Riders and third parties involved in an accident can also report the incident to Uber. Riders can use the Safety Incident Reporting Line, found in the Ride Details screen in the Activity section of the Uber app. Third parties can report accidents by submitting an incident report online.

Remember, it is important to remain calm and follow these steps as soon as it is safe and reasonable to do so. By reporting accidents promptly and providing detailed information, you help ensure that Uber can provide the necessary support and assistance to all involved parties.

Frequently asked questions