Uber Vehicle Insurance: What You Need

If you're an Uber driver, it's important to have the right insurance in place to ensure you're fully protected. Uber offers its own rideshare insurance coverage, but this has several gaps, and drivers should also have their own personal car insurance policy. This is because personal insurance doesn't typically cover ridesharing, as it's considered business use.

Uber provides driver insurance, but this only covers you when the app is running and you are working. This insurance covers damage to other vehicles or pedestrians while en route to pick up a rider, with a limit of at least $1,000,000 in damage protection per accident. It also offers uninsured/underinsured motorist bodily injury coverage and contingent collision and comprehensive coverage.

However, Uber's coverage levels, especially for liability, can leave gaps that increase out-of-pocket costs. For example, collision and comprehensive coverage are only offered if you maintain them on your personal auto insurance, and Uber's deductible is high at $2,500.

Therefore, it's recommended that Uber drivers have both personal and rideshare insurance.

Uber's insurance policy

Ubers Insurance Policy

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

Periods of Coverage

Uber's insurance coverage can be divided into three main periods:

• Period 1: The app is on, but the driver is 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.
• Period 2: The driver has accepted a ride request and is on their way to pick up the passenger. Uber offers $1 million in third-party liability coverage.
• Period 3: The passenger is in the vehicle. This period ends when the passenger exits the car. Uber offers the same coverage as in Period 2, which extends to the passenger.

Additional Coverages

Uber also provides the following additional coverages:

• Uninsured/Underinsured Motorist: Uber provides uninsured/underinsured motorist bodily injury coverage for the driver and passengers if the other driver is at fault and is uninsured or underinsured.
• Collision and Comprehensive: Uber offers coverage for up to the car's actual cash value, with a $2,500 deductible.
• Optional Injury Protection: This optional insurance provides benefits for medical expenses, disability, loss of life, and dismemberment. It costs less than $0.03 per mile on covered trips and offers up to $1,000,000 in accident medical expenses and up to $500 per week in earnings replacement.

Requirements for Drivers

Uber requires its drivers to have personal auto insurance that satisfies the minimum requirements of their state and to ensure their coverage is up to date while driving with Uber. If drivers use a car, motorbike, or scooter for Uber Eats deliveries, they will need a Certificate of Motor Insurance.

Personal insurance

If you are a rideshare driver, it is important to have personal insurance as well as rideshare insurance. Personal insurance policies do not cover commercial activities (i.e. driving to make money). If you are using your car for ridesharing without adequate additional coverage, your insurance company could drop you.

Personal car insurance policies have a clause that explicitly excludes commercial activities like ridesharing. Legally, your insurer can deny any claim if you are driving for Uber and get into an accident. Therefore, it is important to have a commercial policy if you are driving your car for business.

Uber offers its own rideshare insurance coverage, but drivers should still have their own personal car insurance policy to ensure they are fully protected. Uber's insurance policy only covers you when the app is running and you are working for Uber.

There are three main types of insurance that every driver should consider:

• Liability: Liability insurance is mandatory in every state. It covers injuries to another person or damage to their property due to an accident in which you're at fault. Liability insurance will never cover your own car or your own injuries.
• Collision/Comprehensive: These coverages are not mandatory in every state. However, if you have an auto loan on your car, your lender typically requires this coverage. Collision coverage will pay to repair or replace your vehicle if it is damaged in an accident. A comprehensive policy covers car damage that isn't related to an accident, such as hail or fire damage or vandalism.
• Uninsured/Underinsured Motorist: Some states require this coverage. If you're involved in an accident and the other driver is at fault but doesn't have car insurance, uninsured motorist insurance covers your injury-related medical expenses and those of your passengers. It can also cover your lost wages, pain and suffering.

Rideshare drivers should also have rideshare insurance. This can be added as an endorsement to their personal auto policy or via a separate commercial policy.

In summary, if you are an Uber driver, it is important to have both personal insurance and rideshare insurance to ensure you are fully protected in the event of an accident.

Rideshare insurance

If you're an Uber driver, you need to have rideshare insurance. This is because personal insurance doesn't cover rideshare drivers—it's considered business use.

Uber offers its drivers insurance coverage, called Driver-Partner Insurance, but this has several coverage gaps. For instance, Uber's insurance policy only covers you when the app is running and you are working for Uber. This means that, during the times the app is closed, your personal auto policy provides coverage.

Uber's insurance covers three main periods:

• The Uber app is on, but you're waiting for a ride request.
• You've accepted a ride request and are on your way to pick up a passenger.
• The passenger is in your car. This period ends when the passenger exits the car.

During Period 1, Uber's liability limits are relatively low, and the company doesn't offer comprehensive and collision coverage. During Periods 2 and 3, liability is well-covered, but collision and comprehensive coverage have certain caveats. For example, Uber's coverage includes a $2,500 deductible, which means drivers will have to pay $2,500 out-of-pocket before Uber's coverage begins.

Therefore, to ensure you are fully protected, it is recommended that Uber drivers have their own personal car insurance policy in addition to the rideshare insurance provided by Uber. This can be done by adding a rideshare endorsement to your car insurance policy. This type of insurance can be purchased as a separate rideshare insurance policy, or through an endorsement added to a personal auto policy.

Collision and comprehensive insurance

Collision Insurance

Collision insurance pays for:

• Damage to your car in an accident you cause.
• Damage to your car if you hit an object such as a fence or pole.
• Damage to your car if someone else hits you. In this case, you can also make a claim against the other driver's liability insurance.

Comprehensive Insurance

Comprehensive insurance pays for:

• The actual cash value of your car if it's stolen and not recovered.
• Damage from weather such as tornadoes or hail.
• Crashes with an animal, such as striking a deer.
• Riots and civil disturbances.

Cost of Collision and Comprehensive Insurance

The cost of collision and comprehensive insurance can vary depending on factors such as the value of your car, your location, your driving history, and the deductible amount you choose. On average, collision and comprehensive insurance can add hundreds of dollars to your annual insurance premiums. However, you can save money by raising your deductible, but this means you'll pay more out-of-pocket if you need to make a claim.

While Uber does provide insurance for its drivers, it is important to note that there are gaps in their coverage. Uber's insurance policy only covers you when the app is running and you are working. Additionally, Uber's coverage may not be sufficient to cover all your expenses in the event of an accident. Therefore, it is recommended that Uber drivers have their own personal insurance policy with collision and comprehensive coverage to ensure they are fully protected.

Optional injury protection

Uber's "Optional Injury Protection" is an insurance policy designed to provide additional protection to Uber drivers in the event of a car accident. This policy is optional and separate from the insurance coverage that Uber provides to its drivers.

The "Optional Injury Protection" policy is available at a low cost of less than $0.03 per mile driven with Uber, or less than $0.04 per mile when on-trip. The coverage is provided by Affinity Insurance Services Inc., and the policy is underwritten by Atlantic Specialty Insurance Company.

The policy offers several benefits to drivers, including:

• Earnings replacement or temporary total disability of up to $500 per week.
• Accident medical expenses of up to $1,000,000 with no deductible or copay.
• Survivor benefits of up to $150,000 for the driver's family in case of death.
• Accidental death coverage of up to $50,000.
• Dismemberment coverage of up to $200,000.

The policy is in effect when the driver is online and available for trip requests, en route to pick up a passenger or package, or on an official trip using the app. It does not apply if the driver is using the vehicle for personal reasons or performing services for another company.

Enrollment in the "Optional Injury Protection" policy is a simple process that can be done through the Insurance section of the Driver app or online. Drivers can also cancel their enrollment at any time.

It is important to note that this policy is separate from any personal auto insurance or rideshare insurance that Uber drivers may have. Uber drivers should ensure they have the necessary insurance coverage to comply with state laws and protect themselves and their vehicles.

Frequently asked questions