What Does Uber Insurance Cover for Drivers?

If you are considering becoming an Uber driver, it is important to understand what insurance coverage you will have while driving for the rideshare company. Uber does offer its own rideshare insurance coverage, but it is also crucial for drivers to have their own personal car insurance policy to ensure they are fully protected.

Understanding Rideshare Insurance for Uber

Rideshare insurance is a type of insurance specifically designed for drivers who work for rideshare companies like Uber. It provides coverage for the unique risks and situations that rideshare drivers may encounter while on the job.

Uber insurance works by providing coverage during different periods of the driver's activity. These periods include:

Period 1: Offline Mode

When you are not actively using the Uber app and are driving your vehicle for personal use, your personal car insurance policy applies. During this period, Uber's insurance coverage does not apply, and you are solely covered by your own insurance.

Period 2: Waiting for a Ride Request

Once you have turned on the Uber app and are waiting for a ride request, Uber provides limited liability coverage. This coverage includes up to $50,000 in bodily injury per person, $100,000 in bodily injury per accident, and $25,000 in property damage per accident.

Period 3: En Route to Pick Up or Transporting a Rider

Once you have accepted a ride request and are en route to pick up a passenger or already transporting a rider, Uber's insurance coverage increases. During this period, Uber provides comprehensive protection that includes $1 million in liability coverage, uninsured/underinsured motorist bodily injury coverage, and contingent comprehensive and collision coverage for physical damage to your vehicle.

What Does Uber Insurance Cover?

Uber's insurance coverage includes the following:

• Liability Coverage: This coverage protects third parties, such as passengers and pedestrians, in the event of an accident caused by the Uber driver.
• Collision Coverage: This coverage protects the Uber driver's vehicle in the event of a collision.
• Uninsured/Underinsured Motorist Coverage: This coverage fills in the gaps if the at-fault driver in an accident does not have enough insurance coverage.

Do You Need Both Personal and Rideshare Insurance?

Yes, as an Uber driver, it is important to have both personal car insurance and rideshare insurance. Personal car insurance provides coverage when you are driving for personal use, while rideshare insurance covers you during the periods when you are actively working for Uber.

Having both types of insurance ensures that you are fully protected in all situations. If you only have personal car insurance and get into an accident while driving for Uber, your insurance company may deny the claim because you were using your vehicle for commercial purposes.

What Type of Insurance Do Rideshare Drivers Need?

Rideshare drivers need a combination of personal car insurance and rideshare insurance. Personal car insurance provides coverage for personal use, while rideshare insurance covers the specific risks associated with driving for a rideshare company.

When choosing rideshare insurance, it is important to select a policy that specifically covers rideshare driving. Not all car insurance policies offer rideshare coverage, so it is crucial to review your options and choose the policy that best meets your needs.

How Much Will My Insurance Go Up if I Drive for Uber?

The impact on your insurance premiums when you drive for Uber will depend on various factors, including your driving history, location, and insurance provider.

Some insurance companies may increase your premiums significantly when they learn that you are driving for a rideshare company. However, other companies offer rideshare-friendly policies that may not result in a significant increase in premiums.

To get an accurate estimate of how much your insurance premiums will increase, it is recommended to contact your insurance provider directly and inquire about their policy regarding rideshare driving.

How to Compare Uber and Rideshare Car Insurance Quotes

When comparing Uber and rideshare car insurance quotes, consider the following factors:

• Coverage Limits: Review the coverage limits offered by each insurance provider to ensure they meet your needs.
• Deductibles: Compare the deductibles for comprehensive and collision coverage.
• Additional Benefits: Some insurance providers may offer additional benefits, such as roadside assistance or rental car coverage, which can be valuable.
• Premiums: Compare the premiums offered by different insurance providers and consider the overall cost of coverage.

Rideshare Earnings Calculator

If you are considering becoming an Uber driver, you may be interested in estimating your potential earnings. Uber offers a rideshare earnings calculator on their website that allows you to enter your city and vehicle type to get an estimate of how much you can earn as a driver.

Auto Insurance FAQs

Here are some frequently asked questions about auto insurance:

Does my regular auto insurance policy cover ridesharing?

Most regular auto insurance policies do not cover ridesharing activities. It is important to check with your insurance provider to see if they offer rideshare coverage or if you need to purchase a separate rideshare insurance policy.

Will driving for Uber affect my car insurance?

Yes, driving for Uber can impact your car insurance. Some insurance companies may increase your premiums, while others offer rideshare-friendly policies that may not result in a significant increase.

Is rideshare insurance expensive?

Rideshare insurance premiums can vary depending on various factors, including your location, driving history, and the insurance provider you choose. It is recommended to shop around and compare quotes from different insurance companies to find the most affordable rideshare insurance policy.

Do you need rideshare insurance?

Yes, as an Uber driver, you need rideshare insurance to ensure you are fully protected while driving for the rideshare company. Personal car insurance alone may not provide coverage during periods when you are actively working for Uber.

Do Uber and Lyft provide insurance?

Yes, both Uber and Lyft provide insurance coverage for their drivers. However, it is important to note that the coverage provided by the rideshare companies may have limitations and may not fully protect you in all situations. It is recommended to have your own rideshare insurance policy to supplement the coverage provided by Uber or Lyft.

What insurance do you need during the gap?

The gap refers to the period when you have the Uber app turned on but have not yet accepted a ride request. During this gap period, Uber provides limited liability coverage, but it may be beneficial to have additional coverage through your own rideshare insurance policy.

What if my state does not have rideshare car insurance?

If your state does not have specific rideshare car insurance regulations, it is still important to have rideshare insurance coverage. Without rideshare insurance, your personal car insurance may deny coverage if you get into an accident while driving for Uber.

Does Uber insurance cover rental cars?

No, Uber's insurance coverage does not typically extend to rental cars. If you are using a rental car to drive for Uber, it is important to check with the rental car company and your insurance provider to ensure you have adequate coverage.

Conclusion

As an Uber driver, it is essential to understand what insurance coverage you have while driving for the rideshare company. Uber offers its own rideshare insurance coverage, but it is crucial to have your own personal car insurance policy as well. Understanding the periods of coverage and the types of insurance provided by Uber will help ensure that you are fully protected in all situations. It is also important to compare insurance quotes, consider rideshare insurance, and consult with your insurance provider to determine the best coverage options for your needs.