Uber is a convenient ride hailing service that provides passengers with an alternative to taxis. Uber also maintains auto insurance for its drivers and can cover damages caused to your car in case of an accident.
But does your own car policy provide coverage when working for Uber? Keep reading to find out.
Liability Coverage
As an Uber driver, you must carry at least some minimum levels of liability coverage, including bodily injury and property damage liability. Should an accident occur caused by you, this type of coverage helps pay for associated costs to others involved; depending on state laws it might also cover medical costs for both driver and passengers involved.
Uber provides drivers with supplemental car insurance to cover gaps in their personal policies while on the job, called Driver-Partner Insurance. While the policy has several restrictions and restrictions when not actively providing ride requests or collecting them. Uber coverage levels tend to change accordingly when needed: when your app is off it provides less coverage and increases when active as it waits for ride requests or delivers them.
Assuming Uber insurance is active, it only covers damages you cause to third-party people and property. It does not offer collision or comprehensive car coverage – these options can be obtained either with separate policies or adding rideshare endorsements onto existing auto policies.
Take, for example, running a red light and hitting another car; they sustain injuries which should be covered by their insurance, but their driver does not carry enough coverage to pay for your damages; in such a situation, Uber’s policy will pay out for these damages instead as you were ‘on duty”.
Uber’s insurance policy offers $50,000 of bodily injury liability per person and $100,000 of bodily injury liability per accident as well as $25,000 for property damage caused by drivers. They also provide contingent comprehensive and collision coverage of up to the actual cash value of your car with a $2,500 deductible; provided your personal auto policy provides it. Drivers should always read through their policies thoroughly to understand exactly what coverage exists as well as which policy best meets their individual needs; drivers can ask their agent which one may work better for them when considering Uber endorsement versus commercial policy as options.
Comprehensive Coverage
Uber offers limited car insurance coverage that protects drivers during specific window of time while working. Their policy insures both their vehicle and rider if they log onto the app and connect with a rider to take them from one destination to the other – up to $100,000 of bodily injury coverage per accident as well as $300,000.
Uber insurance does not extend coverage to anyone involved in an accident other than yourself or your vehicle, or its physical damage; without comprehensive and collision coverage on your personal auto policy. This leaves drivers susceptible to significant out-of-pocket costs if they cause an accident themselves, particularly if the victim is uninsured.
Uber drivers who aren’t actively waiting or matching with riders, on their way to pick them up and after pickup can rely on their personal auto policy for protection during this stage of driving – Uber’s insurance only comes into effect during stages two and three.
Once a driver accepts a ride request, Uber’s insurance provides them with liability protection of up to $1 Million for third-party injuries and $300,000. They also qualify for uninsured/underinsured motorist coverage of up to $1 Million as well as contingent comprehensive and collision coverage (meaning that their personal auto policy must include this coverage in order to access these additional benefits).
After dropping off a passenger, their Uber insurance resumes its previous limits if they’ve kept the app active until their trip is complete. Drivers can also add comprehensive and collision coverage as an add-on policy to supplement Uber coverage when available.
Uber offers delivery drivers in Canada who work via bicycle, e-bike, e-scooter or on foot up to $200,000 of personal injury coverage in case they cause property damage or collision with pedestrians or motorized vehicles while using its app. This policy protects them and their vehicle in such situations.
Collision Coverage
As an Uber driver, it’s essential that you understand how your app status and trip stages impact the insurance coverage that applies. While your personal auto policy may provide some liability protection if you’re offline without looking for or accepting passenger requests, Uber provides more complicated coverage in such circumstances.
As soon as you pick up a passenger, your Uber insurance coverage ramps up significantly. Your supplemental Uber insurance covers any damage done to your vehicle as well as injuries or property damages sustained by passengers during the ride – providing both drivers and passengers with peace of mind.
Once your passenger is gone, Uber’s insurance coverage reverts to waiting-for-requests mode if your app remains active and on the clock. Higher limits and comprehensive protection are meant to cover your car as well as yourself or external parties in case of an accident.
Importantly, Uber insurance policies contain deductibles which you must cover out-of-pocket before their coverage kicks in. While this deductible can be difficult to afford in an accident situation, many Uber drivers choose to add optional injury protection that provides disability payments and medical expenses with no deductible to their existing personal auto policies.
As previously noted, your personal auto policy usually takes precedence in any accident scenario that arises while you’re actively using Uber but have yet to accept a ride request. Your certificate of insurance can provide details regarding coverage; to view them quickly click Account, Insurance then Certificates. From here you can submit an incident report quickly as this is how Uber’s insurer processes claims quickly.
Uninsured Motorist Coverage
Uber drivers must carry car insurance; however, many personal auto insurance policies exclude ridesharing coverage altogether, leaving drivers exposed if an accident happens while working for Uber and their own policy doesn’t provide adequate protection.
Uber and Lyft provide additional insurance policies for their drivers in order to address this problem, typically including liability, collision, and comprehensive coverages; these may vary in terms of limits and deductibles – Uber’s car insurance offers a $2,500 deductible while other insurers may provide lower deductibles.
Some Uber drivers opt for commercial insurance policies, which typically cost more than personal auto policies. As an Uber driver, it is important to assess all available policies to find one that is a suitable match for you.
Coverage during Trip An Uber driver in the process of picking up or transporting passengers is protected by their company’s insurance policy, including $1 Million worth of third-party liability coverage and uninsured/underinsured motorist protection. However, should another vehicle collide with them during a journey and cause property damage up to its value plus $50K only coverage will apply.
Uber does not cover drivers during their off-trip period as its policy only kicks in when a ride has been requested or in progress; unfortunately, many drivers fail to inform their personal insurer of working for a rideshare service; this leaves them vulnerable should an accident occur and injury or property damage arise from it.
As such, Uber drivers must carry personal auto insurance in addition to company coverage. Furthermore, it may be beneficial for them to obtain a rideshare endorsement on their personal policy in order to cover for situations that arise while ridesharing. Reach out to an experienced auto insurance attorney now in order to secure the policy that best meets their needs!
