Best Insurance Companies For Uber Drivers

If you're considering driving for Uber, it's important to understand the insurance requirements and options available to you. Uber drivers need to maintain auto liability insurance that meets the minimum requirements of their state, and they should also consider purchasing additional coverage, such as rideshare insurance or a rideshare endorsement, to ensure they are fully protected while driving for Uber. Let's take a closer look at the insurance options available to Uber drivers and how these policies can provide coverage in different scenarios.

Uber's insurance requirements for drivers

Uber has specific insurance requirements for its drivers, and it's important to understand these before becoming a rideshare or delivery driver for the company. Uber provides insurance for its drivers, but only in certain situations. Firstly, Uber drivers must be actively using the Uber app for Uber insurance to apply. This means that if the Uber app is off or the driver is not online, Uber insurance does not apply, and the driver's personal or commercial insurance must cover any incidents.

Uber insurance is designed to protect Uber drivers, passengers, and any third parties involved in an accident if the Uber driver is at fault. It covers bodily injuries or damages caused to riders, people in other vehicles, pedestrians, or property. Uber's insurance covers up to $1,000,000 for third-party liability and provides coverage of at least $50,000 per person and $100,000 per accident for injuries. This policy applies if the driver's personal auto policy does not provide coverage or if their policy limits are lower than these amounts.

It's important to note that Uber insurance does not cover everything, and drivers should not rely solely on it. Uber drivers are subject to a $2,500 deductible before Uber insurance covers the cost of damages to themselves, their passengers, or their car. Additionally, Uber's insurance is contingent upon the driver having personal auto insurance with comprehensive and collision coverage to cover them when they are not working.

In some states, Uber may maintain extra coverage for its drivers and riders, including coverage for injuries in a hit-and-run or an accident caused by an uninsured or underinsured driver, personal injury protection, and medical payments coverage. Drivers can also purchase Optional Injury Protection to cover their additional medical expenses if they are hurt in an accident, which extends to their family members in case they are unable to work.

Personal auto insurance

If you are considering driving for Uber, it is important to understand the insurance requirements and how your personal auto insurance fits into this. Uber requires that all drivers maintain personal automobile insurance at mandatory minimum limits and provide proof of this insurance. This means that your personal auto insurance covers you while you are offline and not using the Uber app. It is important to note that driving for Uber falls under a commercial auto insurance policy rather than a personal auto policy, so you may need to purchase an additional policy feature called "rideshare coverage" or a "rideshare endorsement". This extends your personal policy while you are working but have not accepted a ride request. Once you accept a ride, the coverage provided by Uber takes over.

Rideshare insurance is important because it prevents your insurance company from dropping you because you are an Uber driver. Without this coverage, you risk not only paying out of pocket for a claim but also being dropped by your insurance company. It is your responsibility to inform your insurance company that you are driving for a ride-sharing service. Many companies offer rideshare coverage, but availability may vary based on your location, and rates may differ based on your driving profile and insurance company offerings.

While you are online with Uber but have not yet accepted a trip, Uber may maintain automobile liability coverage on your behalf. This coverage applies if your personal auto policy does not provide coverage or if your policy's limits are less than the minimum required by law. Uber's insurance covers bodily injuries or damages caused to riders, people in other vehicles, pedestrians, or property. It also includes uninsured/underinsured motorist bodily injury coverage, which insures injuries to you and your riders if another driver is at fault and doesn't have sufficient insurance. This coverage also applies in the case of a hit-and-run.

In most US states, you can also purchase Optional Injury Protection to cover your additional medical expenses if you are injured in an accident. This coverage includes disability payments, medical expenses with no deductibles, and survivor benefit payments for your family members. Uber may also maintain extra coverage for you and your riders, including coverage for injuries in a hit-and-run or an accident caused by an uninsured or underinsured driver, personal injury protection, and medical payments coverage, no matter who is at fault.

Rideshare endorsements

As an Uber driver, you are required to have personal automobile insurance with mandatory minimum limits and provide proof of your insurance. Uber also provides insurance coverage for its drivers, but it is important to understand the different periods of ridesharing and the insurance coverage provided during each period.

Period 1 refers to the time when a driver has turned on the ridesharing app and is waiting for a trip request. During this period, Uber's insurance does not cover the driver, and the driver's personal insurance policy may not cover them either due to a coverage gap. This is where rideshare endorsements come in. Rideshare endorsements are additional coverage options offered by some insurance companies that can be added to a standard personal policy to fill this coverage gap.

Farmers Insurance was one of the first insurers to offer rideshare endorsements, providing coverage during Period 1. Their rideshare endorsement is not a commercial policy, but it ensures that drivers are covered while waiting for a trip request. The cost of adding a rideshare endorsement to a Farmers policy is typically about 25% higher than a standard policy.

Allstate also offers a rideshare endorsement that helps cover the Period 1 coverage gap. In addition, Allstate's endorsement includes deductible gap coverage, reimbursing drivers for a portion of the deductible when filing a claim with Uber or Lyft, so that it matches the deductible on their personal policy.

State Farm offers a more extensive rideshare endorsement that provides coverage during Periods 1, 2, and 3. This means that a driver's personal deductible and other coverages, such as medical, towing, and rental car coverage, will be in effect even when driving for Uber.

It is important to note that Uber also provides insurance coverage for its drivers during Periods 2 and 3. Period 2 refers to the time after a driver has accepted a trip request and is en route to pick up the passenger. During this period, Uber provides automobile liability coverage on behalf of the driver, which insures bodily injuries or damages caused to riders, other vehicles, pedestrians, or property. Period 3 refers to the time when a driver has picked up the passenger and is transporting them to their destination. Uber's insurance coverage continues during this period, including coverage for accidents caused by uninsured or underinsured drivers.

Uber's liability insurance

Uber maintains insurance on behalf of its drivers and delivery partners. This insurance covers drivers' liability for property damage and injuries to riders and third parties involved in an accident. This policy is applicable when the driver is online and available for a trip. The coverage amount is at least $50,000 per person and $100,000 per accident for bodily injuries. Uber's insurance also covers at least $1,000,000 for property damage.

Uber's third-party liability insurance covers the cost of injuries or damage when the driver is at fault. This insurance covers bodily injuries or damages to riders, people in other vehicles, pedestrians, or property. Uber's insurance will also cover physical damage to the driver's car up to its actual cash value, regardless of who is at fault. However, there is a deductible that the driver must pay first, which is typically $2,500 but can be $1,000 for certain vehicles.

In addition, Uber's insurance includes uninsured/underinsured motorist bodily injury coverage. This insurance covers injuries to the driver and riders if an accident occurs during an Uber trip, and the other driver is at fault and doesn't have sufficient insurance. This coverage also applies in the case of a hit-and-run. Uber's insurance may also include personal injury protection and/or uninsured/underinsured motorist coverage, depending on the state's requirements.

Furthermore, Uber offers Optional Injury Protection, which is available for purchase in most US states. This insurance covers the driver's additional medical expenses, disability payments, and survivor benefit payments for family members if they are injured in an accident and cannot work. This coverage is designed specifically for rideshare and delivery drivers and can be purchased for $0.024 per mile in 42 states.

Optional Injury Protection

The cost of Optional Injury Protection is under four cents per mile, and drivers can enroll or terminate coverage at any time. This insurance is optional, and drivers do not need it to drive with Uber. However, it can provide valuable peace of mind and financial security in the event of an accident.

It's important to note that personal auto insurance policies typically do not cover rideshare drivers because it is considered business use. Therefore, drivers should consider purchasing rideshare insurance or a rideshare endorsement to ensure they have adequate coverage. Uber provides liability coverage of $1 million for any accident that is the driver's fault. However, this coverage is third-party and will not reimburse the driver for their own damages.

Frequently asked questions