If You’re an Uber Driver Here’s the Insurance You’ll Need

Driving for Uber is a great way to earn extra income, but it comes with its own set of challenges—especially when it comes to insurance. Do you have the right coverage to protect yourself, your passengers, and your vehicle? Understanding Uber’s insurance policy and the gaps in coverage is essential to avoid surprises in case of an accident.

This guide breaks down everything you need to know about Uber driver insurance, including coverage requirements, options, and actionable steps to ensure you’re fully protected. If you are considering being an UberX provider (local drivers who use their own cars and the Uber app to pick up and drive customers to their destination), consider these insurance factors:

Understanding the Ubers’s insurance coverage

Depending on the trip’s stage, Uber offers its drivers different insurance coverage. These phases establish what Uber’s policy covers and when it applies:

Offline: Uber does not offer coverage while the app is not open. It pertains to your personal auto insurance.

While waiting for a ride online, Uber provides liability protection up to:

$50,000 for each person’s physical harm

$100,000 for each accident’s bodily injuries

Property damage of $25,000.

On the way to a passenger and throughout thjourney, Uberer offers:

$1 million in liability coverage for losses to third parties

Vehicle damage is covered under collision and comprehensive coverage, but only if it is included in your individual insurance. There is a deductible.

Uber provides some liability coverage, but most standard auto insurance policies will not cover a driver who is using their vehicle for commercial use (driving passengers for money for Uber is considered commercial use) unless:

1. They have ride-sharing insurance

2. They have commercial liability insurance

Why is your personal auto insurance not enough?

Generally speaking, business activities like ridesharing are not covered by your personal motor insurance. Depending only on personal insurance may lead to:

Denied claims in the event of an accident while operating an Uber vehicle.
monetary responsibility for harm or damages.
Solution: To close this deficit, take into account ridesharing endorsements or insurance.

What is Rideshare Insurance?

Rideshare insurance is a policy designed to cover gaps between Uber’s insurance and your personal policy. It typically includes:

Coverage During the App-On, Waiting-for-a-Ride Phase: Protects you when Uber’s limited liability coverage applies.

Collision and Comprehensive Coverage: Extends these protections when Uber’s coverage is insufficient or nonexistent.Customizable Add-Ons: Customized options for part-time and full-time drivers.

Before you hire on as an Uber driver, check with your insurance provider. Make sure that “driving for hire” is not included in their list of exclusions for coverage. If it is, and you become an Uber driver, your insurance provider could drop you. If the policy does not exclude “driving for hire,” ask if your current policy covers commercial driving. If not, you will need to get supplemental insurance in one of the two forms listed above: ride-share or commercial liability insurance. Rideshare is a hybrid or add-on to your personal auto provider. Talk to your insurance provider about which option works best for your purposes and with your current policy.

Uber does provide you with some liability auto coverage, but it’s important to know when that insurance is active. Also, Uber requires its drivers to carry their own car insurance, so do not plan to rely on Uber for all your coverage.

Here is insurance coverage that generally works for Uber drivers:

If your Uber app is off, your personal auto policy is in place. When you have the Uber app on and you are waiting for a request for a ride, you are not covered by your personal policy unless you have ride-sharing or commercial liability coverage. During this time, Uber provides limited liability coverage.

If you accepted a rider request and are actively en route to pick up the rider or transporting them to their destination, Uber’s insurance policy covers liability claims up to $1 million. Uber has a $1,000 deductible in thievent,nt which is dependent on drivers having their own personal comprehensive and collision coverage. However, this policy does not alwaycoverge damage to your auto, even if your auto is totaled.

How do choose the right insurance as an Uber driver

Here are steps to ensure you have the right coverage:

1. Review Uber’s Insurance Policy: Understand what Uber covers and when.
2. Assess Your Personal Policy: Check for exclusions related to commercial driving.
3. Shop for Rideshare Insurance: Look for policies or endorsements that cover gaps in your coverage.
4. Ask the Right Questions:
   • Does this policy cover me while waiting for a ride?
   • Are passengers included in liability coverage?
   • What are the deductibles for collision or comprehensive claims?
5. Consider Local Laws: Some states mandate additional rideshare insurance. Verify your state’s requirements.

So, if you want to be an Uber driver, your first step is to contact us to make sure your job as an Uber driver is covered for all types of liability and damages. Safe driving!