Uber publicly discloses their Uber Driver Insurance Requirements. They only require you to have your own personal insurance policy in order to drive for them. They do provide their own insurance coverage when you are driving.
So, Do Uber Drivers Need Special Insurance?
Maybe. You may not be fully covered with Uber’s insurance in every instance. You should check to make sure that both you and your vehicle are always fully covered. How do you know if you’re covered? Below, I’ll be going over the insurance that Uber provides so you can see just where the dangerous area is.
You’ll want to check with your insurance company.
You may not be fully covered with Uber’s insurance in every instance. You should check to make sure that both you and your vehicle are always fully covered.
Also, it’s very important that you let your insurance provider know if you drive for these companies. If they find out and you haven’t told them, they may cancel your policy.
Or if you get in an accident even while not driving for them, your insurance company may decline your claim if they find out.
If you get several driver’s insurance quotes from different companies you can make sure you get the best deal. Also, some insurance companies won’t insure you if you drive for Uber. Make sure your insurance company doesn’t have a clause that prevents you from driving for Uber or similar companies. To make navigating the insurance matters easier, I will be reviewing insurance companies in upcoming posts.
Other insurance companies require you to sign up for Rideshare coverage. The good news is that these generally don’t cost much more than regular insurance.
Just what does the Uber’s insurance policy cover?
There are different phases of activity that determines how much Uber’s policy will cover.
- Phase Zero
You’re not driving for Uber at the moment, and your app is not on. Anytime you’re driving and your app is not on, you are covered under you own personal insurance policy.
- First Phase – The app is on and you are waiting for the ding.
Uber offers Third Party Liability. This means, if you are at fault for an accident, Uber will pay for the other person and their vehicle. Your own injuries and car damage are not covered.
- 2nd Phase – The ding came! You are on your way to pick up your passenger.
- 3rd Phase – You are driving your passenger.
During these two phases, this is where the Uber insurance policy is in full effect and you are fully covered.
Uber’s insurance offers:
– $1,000,000 in Third Party Coverage
– Uninsured/Underinsured Coverage
– Contingent Comprehensive and Collision
– No matter who is at fault, Uber’s insurance will cover up to the cash value of your car, minus the $1,000 deductible that you have to pay first.
- The interim – You’ve dropped your passenger off and are waiting for a new ding.
You are now back to the same limited coverage offered for the First Phase.
In short, it is definitely advisable to get Rideshare insurance.
While Uber does provide auto insurance coverage, when the app is on and you are waiting for a ding, you and your property are not covered if you’re at fault for an accident. Uber will cover the other car and the people in it, but you are left out.
Not to mention, even during the phases where the Uber coverage is at its maximum, there is still a $1,000 deductible. That is a higher deductible than I want to pay, so even in those cases having rideshare insurance can help.