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

Being an Uber driver brings opportunities for a second job you can do on your own time and a steady cash flow. But it also requires making sure you have the right insurance to cover you for liability for a ride-share job. Many drivers mistakenly think that if they have a standard auto insurance policy, they are sufficiently covered in their work as an Uber driver. That isn’t the case.

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:

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

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 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 this event which is dependent on drivers having their own personal comprehensive and collision coverage. However, this policy does not always coverage damage to your auto, even if your auto is totaled.

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!