Uber and Lyft both offer commercial insurance policies to their drivers that vary by state. In New York for instance, coverage depends on whether or not their personal vehicle possesses comprehensive and collision coverage.
Rideshare insurance can be added onto a personal auto policy as an endorsement rather than as a standalone commercial policy, providing coverage in certain situations such as:
Liability
As an Uber driver, one of your primary concerns should be protecting yourself and your vehicle against damage that might occur. Luckily, Uber offers drivers comprehensive insurance policies designed to give peace of mind. Learning more about how these coverages operate will allow you to drive confidently and safely.
Liability insurance is at the core of Uber driver coverage. When off duty and not using your Uber app, coverage comes from your personal auto policy; when on duty and waiting for ride requests however, your coverage begins to shift – during this phase, the Uber insurance policy provides limited bodily injury and property damage liability coverage as well as contingent “insurance gap” coverage if your personal insurer denies coverage due to either its terms or due to an incident-specific factor.
Uber coverage increases exponentially when accepting ride requests and driving to pick up passengers, providing both liability protection for you and your passengers as well as uninsured/underinsured motorist coverage. In addition, vehicle damage policies provide financial support that could assist with repairs after an accident has taken place.
Coverage during an Uber passenger ride is similar to the waiting period: both you and the Uber passenger will remain covered under its insurance policy for bodily injury and property damage, with each of your passengers benefitting from $1.5 million per accident in Uninsured/Underinsured Motorist coverage provided by Uber.
Although Uber provides adequate protection, having additional commercial automobile insurance coverage is still vital. Most personal car insurers exclude “driving for hire”, making it hard for part-time drivers to find coverage while working. Uber provides its own commercial policy that you can purchase so that your coverage extends during work time; this makes life much simpler and less costly than trying to obtain individual policies that provide similar coverage.
Comprehensive
Uber has revolutionized how people hail rides and navigate their towns and cities. Users can request rides via mobile app and get access to cars quickly – providing people with convenient transport in minutes. Driving for Uber can also be lucrative main or side hustle for many individuals; however, special auto insurance must be purchased to operate this way.
Personal auto policies typically do not account for this kind of work, and in some cases even exclude it altogether. Because of this, drivers should either obtain a separate commercial auto policy or add an Uber endorsement to their existing policy in order to get adequate liability and collision coverage while working for Uber.
Uber offers limited commercial auto insurance when drivers turn on their Uber driver app and wait for ride requests, including liability and uninsured/underinsured motorist coverage with specific limits – these may fall below what most experts recommend for liability protection (up to $100,000 for bodily injury per person and $25,000 in property damage), but still provide sufficient protection.
Once a ride request has been accepted and you are on your way to collect passenger(s), Uber’s insurance begins providing coverage and protecting you. At this stage, the Crash Center becomes an integral safety feature: here you can report accidents, view claim status updates, and view rental car options all from within your Uber app.
Uber offers its drivers commercial insurance that includes liability and uninsured/underinsured motorist coverage as well as optional injury protection, which provides coverage for medical expenses and income replacement in case of an accident while on duty with Uber.
Though not required in every state, you should strongly consider adding this valuable coverage to your Uber driver policy if it’s not already included on your personal auto policy. Having this protection provides peace of mind and could save money should an accident occur. For more information about all the different forms of coverage available to drivers visit WalletHub’s Uber Driver Insurance Guide or speak with an agent who specializes in auto insurance in your area.
Collision
Uber and Lyft both provide passengers with third-party liability coverage that protects them in situations in which the driver is at fault. This coverage is especially vital as traditional auto policies typically do not cover commercial use of the vehicle; many drivers only carry personal policies which exclude ridesharing activities like ridesharing. Passengers injured during their trip may claim compensation through these policies or file a personal injury suit against those responsible.
Rideshare policies also offer contingent collision and comprehensive coverage as a form of extra protection for their drivers, covering physical damage to their own vehicle up to its cash value (with an associated $1,000 deductible). However, this protection can only be obtained if they hold either an auto policy with rideshare endorsements or maintain coverage through separate commercial policies.
Uber and Lyft’s insurance policies reflect their distinct phases of operation: Period 1: While no ride request has been accepted yet, Uber offers $25,000 of property damage coverage during this phase.
Period 2: Once a driver accepts a ride request and begins their drive towards picking up their passenger, Uber’s policy provides up to $1 million of third-party liability, uninsured/underinsured motorist coverage, contingent comprehensive and collision coverage for their vehicle in this phase.
Reasons for adding additional coverage during Period 2 include that cars could be stolen or vandalized during that period and would therefore not be covered by traditional auto policies. Furthermore, in an incident that does not involve them but occurs while waiting for passengers – traditional car insurance policies would only cover other drivers’ cars but not his or hers!
As with any business, having adequate insurance is key for Uber drivers and passengers alike. By understanding how their policies operate in various scenarios, drivers can make informed decisions regarding whether to purchase separate commercial policies for Uber. In the event of an Uber collision, legal advice should always be sought so as to obtain maximum financial compensation possible.
Uninsured/Underinsured Motorists
Uber drivers benefit greatly from having access to robust insurance policy limits that give them peace of mind when driving, and also help expedite claims processes and provide more reliable experiences for all parties involved in an accident. In particular, having adequate coverage limits will cover damages to their vehicle, passengers or third parties in an incident, streamlining claims processes while creating a better experience overall.
Uber’s contingent liability insurance kicks in as soon as a driver accepts a ride request in the app and begins actively on-clock driving. At this stage, coverage includes bodily injury to passengers as well as collision coverage and uninsured/underinsured motorist protection, plus property damage up to its actual cash value after payment of a $1,000 deductible fee.
Once a ride ends, Uber insurance no longer applies; at this point their personal auto policy generally takes over again as long as proper coverage limits were maintained on their policy. The in-between phase known as “coverage gaps” must be understood by drivers for best results.
Notably, commercial auto policies typically have higher coverage limits than individual policies due to being used exclusively for business use – from salespeople driving company cars or construction workers using dump trucks – regardless of what business sector. Commercial auto insurance should always be viewed as essential protection when driving regularly on business.
Although many individuals believe they don’t need additional insurance when driving for Uber, the truth is that accidents could happen and their own personal policy might not provide adequate coverage limits – leading to financial ruin for both parties involved. Furthermore, being found responsible could have serious legal and financial ramifications that require significant legal representation as well as financial support from insurers. Therefore, drivers should carefully consider purchasing either an additional rideshare endorsement policy or separate commercial car policy in order to have peace of mind as they navigate this new career with confidence. For more information about getting the best coverage please don’t hesitate to get in touch with us!