Key Takeaways
- Uber provides its drivers with an auto insurance policy, but additional personal coverage is needed.
- Uber’s insurance varies by the driver’s status: offline, waiting for a request, en route, and during trips.
- Personal auto insurance with a rideshare endorsement is essential for full coverage.
- The cost of personal auto insurance with rideshare coverage can vary significantly.
If you’re using your personal car for work purposes, such as driving for Uber, your insurance company needs to be aware of it.
Failing to tell them could result in a rejected claim if you end up having an accident. That’s an expensive and easily avoidable error you don’t want to make.
Standard auto insurance plans don’t cover you while driving for Uber, and rideshare insurance plans don’t cover your regular driving outside of work.
You need to understand the exact times when each plan covers you to guarantee there are no gaps in your coverage.
As an Uber driver, you get complimentary insurance, but you’re also required to have your own personal auto insurance.
Some private insurance companies offer rideshare endorsement add-ons to their policies to make it easier for you.
An Explanation of Uber’s Insurance Policies
Uber automatically provides a base level of insurance for all its drivers and their vehicles.
The list of rideshare insurance services it provides is detailed and may seem confusing, but don’t worry. We’ll break it down and you’ll know everything that the company covers.
What Does Uber Insurance Cover (and What It Doesn’t Cover)?
Uber’s insurance will cover its riders, drivers, and any third parties involved. This includes bodily injury or damage you may cause to others or their property.
Your car is only covered by the company if your personal policy includes comprehensive and collision coverage, also known as full coverage. Without full coverage on your auto insurance plan, you’re responsible for any damage to your car that happens during rideshare driving.
If you have full coverage and get into an accident, then all you need to do is pay Uber’s deductible price.
The $1,000 deductible (as opposed to the $2,500 sum for Lyft) covers your part of the repair costs, while insurance covers the actual cash value of the rest of the vehicle’s damage.
When Does Uber Insurance Cover You?
Different stages of driving for Uber provide different types of coverage.
For example, when you have the app turned off and are on a personal drive, its insurance policy won’t cover you because you’re not working for it at the time when a potential accident happens.
The levels of coverage provided by Uber insurance for all potential situations are broken down like this:
- Personal Driving: When you’re not driving for the rideshare service, there’s no coverage.
- Waiting for a Ride Request: If you’re sitting in your car waiting for a drive request, then you’re partially covered. It provides third-party liability coverage, which includes injuries and damage caused by yourself.
- Accepted Ride, En Route to Pick Up: Uber insurance provides full coverage.
- Passengers in Car: Uber insurance provides full coverage.
- Passengers Dropped Off: If you’re waiting for the next ride after finishing your previous one, you’ll be partially covered again. This only includes liability insurance.
Uber’s Insurance Add-Ons
Uber offers add-ons to its plan that you can purchase for you and your vehicle. Some of these add-ons include:
- Optional Injury Protection: In case of personal injury, this will cover disability payments, medical expenses with no deductibles, and survivor benefit payments for your family members. It’s only available in certain US states.
- Coverage for Commercial Drivers: For commercial drivers operating commercial vehicles, Uber offers and requires additional commercial insurance. It’ll inform you if this option is required for your vehicle.
Different states have varying policies. It’s worth looking into your state’s specific laws to better understand what you may need as part of your insurance.
Getting Personal Auto Insurance 101
When looking at auto insurance plans, a lot of phrases that may sound unfamiliar are used.
Depending on your circumstances, you may consider getting:
- Commercial Insurance: It’s best for contractors who use their vehicle for services that don’t offer insurance as part of the benefits. If you’re privately driving customers or deliveries, you’ll want this option.
- A Rideshare Add-On: Best for those who only drive for Uber, Lyft, or other rideshare or delivery services and need coverage to fill the gaps between their personal and Uber insurance.
What Should Be Covered On a Personal Auto Plan?
This depends on what you’re using the insurance plan for.
As an Uber driver, you’ll probably want an auto insurance plan that provides you with coverage during the periods that Uber insurance doesn’t cover for you.
With the increasing popularity of driving apps, many insurance companies designed rideshare insurance plans that you can easily add to your existing insurance plan to supplement them.
How Much Does a Personal Auto Insurance Cost?
The cost of personal auto insurance heavily depends on many factors. The cost of commercial insurance is significantly higher than a simple rideshare add-on, as it covers significantly more.
Rideshare add-on insurance starts as low as $6 per month, but the typical rate is closer to $30 per month.
Commercial insurance costs around $215 per month but can be significantly higher depending on the coverage and deductibles that are agreed to. Some insurers offer lower rates than this, too.
Your best bet for finding the right insurance policy is looking for an insurance provider that specializes in rideshare policies. Some of the best places to start may be:
A personal auto insurer won’t issue you an add-on without a base plan, so you’ll need a base plan with a policy that allows you to purchase an appropriate add-on.
Ask your existing provider if they offer this type of coverage, and if not, consider moving to an insurance provider that does.
Brett’s Take: Thoughts From an Expert
Typically, specifically requesting a rideshare endorsement instead of full commercial insurance helps to avoid unnecessarily high quotes.
However, the availability and cost of rideshare insurance can depend heavily on the state in which the driver is driving and the insurance company they are insured with.
There also seems to be quite a bit of confusion among drivers and insurance agents regarding ridesharing. This leads to quotes that vary pretty widely, and misunderstandings about which type of insurance is actually needed.
My Suggestion: Having the right insurance while Uber driving is very important. I suggest taking the time to find a reputable insurer who specializes in this type of insurance.
Typically, the larger providers like State Farm, Progressive, Geico, Allstate, American Family, and USAA have a good handle on this. Many of them have even developed special insurance specifically for rideshareing.
It doesn’t hurt to reach out to an agent and ask their opinion. Many offer free consultations and will help walk you through the right coverage for your situation.
Frequently Asked Questions
Yes. All rideshare companies will require you to be on their insurance plan, apart from having additional coverage from your own plan.
What Happens If I Don’t Tell My Insurance I’m Driving for Uber?
If you avoid telling your insurance company about using your vehicle for work and they find out, you may see massive rate spikes in your policy.
Moving to another insurer without informing them of everything necessary will eventually result in similarly high rates.
Will Driving for Uber Increase My Auto Insurance Cost?
It likely will. Insurance costs are based on the amount of time you spend on the road, and since you’re driving commercially, the price is increased and your rates may go up.
Wrapping Up
To ensure you have sufficient coverage when driving your vehicle, you’ll need both Uber insurance and personal auto insurance.
Be safe by getting the best possible coverage for you, your car, and your family.
Rideshare insurance added to your plan is straightforward as far as you go with the right provider.
Personal auto insurance providers cover thousands of people in your situation and understand the exact gaps where you need additional coverage.
Happy driving!
