If you are a ride-share driver, then you may need to consider insurance that covers Uber. Personal insurance policies limit coverage when drivers are working for a ride-share company and Uber limits coverage to when a ride-share driver is actively transporting a passenger, which can lead to gaps in coverage. You may be able to add ride-share coverage to your existing policy.
Insurance That Covers Uber
Millions of drivers use their personal vehicles to supplement their income with ride-share apps. Before you pick up your first passenger as an Uber driver, you will need to make sure you have proper coverage. Your car insurance may not cover you if you are in an accident while working for Uber, or any other ride-share company. Ride-share insurance is usually available in one of two ways, including:
- As an add-on to your existing insurance policy
- As an individual policy
Ride-share insurance is different than commercial insurance in that it usually offers cheaper rates. While Uber may cover you when you are actively transporting a passenger, you need to be sure that you have coverage between trips. Even if you are in an accident while actively logged in with Uber and transporting a passenger, they may not offer sufficient coverage.
Most insurance companies offer specific ride-share insurance that is usually cheaper than buying a commercial insurance policy. Specific rates will vary depending on many factors, including your location, driving record, credit score, and age. Some insurance providers offer add-on ride-share coverage for as little as $10 a month. You can always shop around to find the best rates too.
How Does Uber Commercial Insurance Work?
According to Insurify, Uber’s commercial insurance is divided down into four types including offline, available, en route, and on a trip. Further, it is broken down into different periods:
- Period 0: During period zero, your Uber app is off and you are covered by your personal insurance policy.
- Period 1: During period one, your Uber app is on and you are waiting for a Uber ride request. It is unlikely your personal insurance policy will cover you and Uber only offers limited liability. This includes a maximum of $50,000 bodily injury per person, $100,000 bodily injury per accident, and $25,000 property damage per accident. You may need additional coverage to ensure you are protected during this period.
- Period 2: During period two, you have accepted a ride request and you are on your way to pick up the passenger. Uber insurance covers you.
- Period 3: During period three, you have passengers in your vehicle. Uber insurance covers you. Periods two and three include up to one million in liability per accident. Other types of coverage, like uninsured/underinsured and comprehensive or collision vary, depending on your state’s requirements and your personal policy.
Uber also requires drivers to have personal coverage on their vehicles. However, most personal insurance companies have a clause in their policy that excludes the driver from using the vehicle for commercial purposes. Uber also offers other optional insurance that you may consider. Optional injury protection includes benefits like disability payments and no deductibles when filing a claim. Uber commercial insurance does not cover damages to your vehicle due to wear and tear.
Where to Get Ride-Share Insurance
Many insurance providers offer add-on ride-share insurance. It is always a good idea to check with your current provider. However, if they increase your rates too much, you might consider switching providers. The following insurance providers offer ride-share coverage:
- Allstate
- American Family
- Erie
- Farmer’s Insurance
- GEICO
- Mercury
- MetLife
- Progressive Insurance
- Safeco
- State Farm
- Travelers
- USAA
USAA will usually have the best rates. However, this provider is only available to active military members and their families. Insurance provider availability may vary depending on your location.
How Much Auto Insurance Do You Need as a Ride-Share Driver?
It is important to consider your insurance needs as an Uber driver. While insurance needs may vary from driver to driver, depending on things like your state laws and the value of your vehicle, you might consider the following types:
- Liability insurance: Liability insurance is a requirement in each state. It covers injuries or damages to another driver if you’re responsible for an accident.
- Collision/comprehensive coverage: Collision/comprehensive coverage is usually an optional add-on to your existing insurance policy. If you have an auto loan or lease, you may be required to have it.
- Uninsured/underinsured coverage: Uninsured/underinsured coverage may or may not be required in your state. It protects you if you’re in a car accident with a driver who is uninsured or who doesn’t have enough coverage.
In addition to potentially needing more insurance coverage during period one as a ride-share driver, it is also important to note that Uber’s commercial insurance does not cover things like rental car reimbursement or vehicle replacement. You will usually need collision or comprehensive insurance in the form of full coverage for these add-ons. This may be important if you drive a vehicle that is worth more, or if you have a loan on your vehicle.
Because Uber limits coverage to whether or not you have accepted a ride, it is important to consider insurance coverage to fill in the gaps. Some Uber drivers may also choose to buy commercial insurance, but these policies are usually costlier.
What to Do Following a Ride-Share Accident
If you are in an accident while working for Uber, it can be confusing determining who you should notify and who will cover your costs. You should follow these steps:
- Check on everyone’s safety.
- Call 911 if necessary and file a police report.
- Contact Uber.
- Contact your insurance company.
Your insurance company and Uber will notify you of the next steps. They will determine who pays for what, depending on your status at the time of the Uber car accident.
If you work for a ride-share company, you will need insurance that covers Uber. In addition to choosing a policy that is affordable, you also want to ensure you have enough insurance coverage.
Check this out if you need additional information, resources, or guidance on car insurance.
Sources:
Rideshare Insurance: 10 Best Auto Insurance Companies for Uber and Lyft Drivers (2021)
Auto insurance to help protect you
Insurance for Lyft and Uber: Everything You Need to Know
Lyft Insurance: Everything You Need to Know
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