Uber provides commercial auto insurance to drivers during two periods: periods 1 and 2. Period 2 coverage begins when an active Uber app, received ride requests, and are headed out to pick up customers (known as period 2). Uber offers contingent collision and comprehensive coverage that may cover up to actual cash value with a $2,500 deductible.
Minimum Requirements
If you use your personal car for Uber or another rideshare service, a commercial auto policy is required of you. These policies are typically reserved for businesses with multiple vehicles in operation or cars owned by employees in their daily work activities; unlike typical personal policies which offer limited liability limits and protections against accidental loss for personal use only; rideshare/commercial policies typically provide higher liability limits, extended coverage options tailored specifically for business use as well as features like towing and roadside assistance services.
Uber drivers must meet minimum insurance requirements of $75,000 in bodily injury per person and $150,000 per accident in bodily injury coverage and $25,000 property damage (also known as 75/150/25 coverage). Furthermore, this policy includes up to $1.5 million third-party liability and uninsured/underinsured motorist coverage as well as up to 10 year vehicle age restrictions for safety inspection and compliance with minimum safety requirements, such as four factory installed seatbelts with air conditioning for added comfort; in addition to this Uber also offers optional policies providing disability payments with no deductible payments and survivor benefits if an accident occurs as part of this offering – also offering up to $1.5 million of third-party liability/uninsured/underinsured motorist coverage as well as third party/third party liability/uninsured/underinsured motorist protection against third party claims by providing their policy provider;
Once you log on to Uber app and are actively waiting for requests, your personal auto coverage ends. Uber maintains its own commercial insurance at this stage – including up to $1 Million of third-party liability and uninsured/underinsured driver coverage, contingent comprehensive/collision coverage up to the actual cash value of your vehicle (with an optional $2,500 deductible), contingent comprehensive and collision coverage up to the actual cash value (ACV), contingent comprehensive/collision coverage with up to ACV coverage and contingent comprehensive/collision coverage with up to actual cash value coverage up to the ACV plus $2,500 deductibles.
Though more costly than standard commercial policies, umbrella coverage provides important protection from unexpected business uses of your car and may help ensure its continued usage for business use. Without such protection in place, not only could your risks increase significantly but so could those of your auto insurer – potentially leading to nonrenewal or cancellation by them as well.
Liability
Uber drivers must maintain at least $50,000 per person for bodily injury liability and $100,000 per accident in property damage coverage, in addition to standard personal auto insurance requirements in most states. Uber also provides additional liability coverage during periods when active on its app and driving passengers, which may range from third-party liability and uninsured/underinsured motorist coverage up to up to $1 million for third party claims and uninsured/underinsured motorist claims; it even offers collision and comprehensive protection if their car is only used as part of its service but not actively taking delivery requests via its app.
Uber and Lyft utilize a technique known as “periodization” to describe their coverage, in which drivers must remain online to accept ride requests through their app, at which time liability and other coverages (such as collision and comprehensive) will be provided until either a ride is complete or turned off; once passengers exit the vehicle the policy switches into waiting-for-requests mode.
Commercial automobile insurance is required of any business that uses cars. You can either purchase it separately or add it as an endorsement on your personal auto policy, and typically provides higher limits than personal policies at higher premiums.
Rideshare drivers typically opt for personal auto insurance with a rideshare endorsement rather than purchasing commercial policies; however, if their ridesharing company does not provide an endorsement or it doesn’t adequately cover their needs, standalone commercial policies may be purchased; though these tend to be more costly than personal auto policies but can often be combined with other forms of business insurance for lower premiums.
Comprehensive
As an Uber driver, you require more than the liability coverage provided by Uber; comprehensive and collision coverage are essential in protecting your car. Unfortunately, most traditional personal auto policies exclude rideshare driving activities, creating gaps that could leave costly out-of-pocket expenses to cover. Uber insurance does not fulfill these needs so if you intend on driving for Uber it would be wise to explore commercial auto policies tailored specifically for this activity.
Uber drivers are covered under two insurance periods: Stage 0 and Period 2. Your personal policy covers you when you’re not active on the app or driver mode; once Uber’s app is active and you receive ride requests and are on your way to pick them up, commercial insurance kicks in.
During this period, damages caused to third parties may be limited to $25,000 by you and they offer contingent collision and comprehensive coverage during this time – as long as such policies exist on your personal auto policy with an applicable $2,500 deductible.
Uber and Lyft each carry $1 Million in third-party liability coverage as primary protection during rides, and offer secondary levels of liability protection to their drivers. Uber also provides contingent comprehensive and collision coverage – this coverage only becomes available if these coverages exist on your personal car insurance policy and they’re added as rideshare endorsements.
If an accident happens while on the clock, there are various ways of reporting it in the Uber app. Select “Report a Crash” under Help in the app or call Uber’s dedicated support line; alternatively download their Accident Reporting App which gives access to claim statuses and rental car options.
Collision
Commercial auto insurance works similarly to personal car policies but provides coverage when your vehicle is used for business purposes. Any vehicle used for conducting business such as delivery trucks, company cars for salespeople or driving for Uber requires this form of protection.
Insurance typically provides coverage for bodily injury and property damage caused by you; you can select either an aggregate limit for each type of expense related to an accident, for instance – up to $2 Million may be paid out per incident for injuries caused by you; it also covers costs related to repairing or replacing vehicles and other property that has been damaged as a result of one caused by you.
Your commercial auto insurance for Uber will cover any damages sustained during “Period 1”, when your Uber app is active and you are on your way to pick up customers. Uber/Lyft rideshare insurance policies provide liability coverage in this situation, with a $2,500 deductible but do not cover comprehensive losses such as trees falling onto the car.
No extra rideshare insurance policy could save drivers if their vehicle was damaged while waiting for or transporting a passenger. While Uber and Lyft do offer comprehensive coverage during Period 2 of a trip, but its coverage has a $2,500 deductible that won’t kick in until after your personal insurer pays up the claim; their policy also doesn’t apply while your car is parked; for more information please visit either Uber Driver Help Center or select Safety from Help section of app and select Crash Reporting Line for reporting the crash. For further details visit either the Uber Driver Help Center or Safety > Help section > Crash Reporting Line for crash reporting lines of informational purposes or visit Uber Driver Help Center/App > Safety -> Crash Reporting Line for Crash reporting lines of operation for reporting incidents related to collisions caused while transporting or waiting to pick up passengers or transporting.
Uninsured/Underinsured Motorist Coverage
Drivers need to be mindful when it comes to Uber car insurance. First and foremost, drivers who actively take passengers using the Uber app should secure commercial auto coverage – this is because most personal policies do not cover commercial vehicle use, creating gaps or insurance lapses that could prove costly for the business.
If an Uber driver experiences an accident while their coverage gaps remain open, repairing or replacing their car could prove challenging. When this is the case, it’s wise to speak with an independent agent specializing in rideshare policies who offer commercial auto coverage such as Uber.
Uber drivers need commercial auto insurance even when they are offline from the app and not actively using its services; their Uber policy only offers coverage while they are using the service.
Uber insurance provides liability coverage of $1 Million per incident as well as uninsured/underinsured motorist coverage. Uber policies also include collision and comprehensive coverage that provides for the repair or replacement of drivers’ vehicles up to their actual cash value after paying a $2,500 deductible, and additionally protect them while transporting passengers. Uber drivers should only rely on their personal vehicle insurance policies to provide full coverage in times of an accident; otherwise they must obtain separate commercial policies like those carried by businesses when operating multiple vehicles commercially.