High-Tech Insurance System for UberX Partner Drivers

Insurance for Uber drivers is a very confusing topic that many don’t know about.

Does Uber insurance cover accidents?

What happens when an Uber driver gets in an accident?

How much does a rideshare insurance policy for Uber drivers cost?

To address some of these difficult questions, Uber has partnered with Metromile to equip UberX drivers with a high-tech insurance system so they have one less thing to worry about when driving.

The partnership with Metromile, as reported by Fast Company, is Uber’s effort to provide partners with a better and more robust insurance option.

Also read: Rideshare Insurance Options for Drivers [Complete List]


UberX Partner Drivers to Be Given New Insurance System

In a move that is sure to have repercussions for Uber’s ongoing war with regulators and the taxi industry, the ride-sharing giant is rolling out specialized insurance for UberX drivers. Uber and Metromile, an insurance company that produces a special “smart dongle” for cars that tracks mileage, made the announcement in San Francisco on Wednesday. The new insurance product will be available in California, Illinois, and Washington state in the coming months. 

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The taxi industry has been attacking Uber for their lack of action with regards to their partners being underinsured. As an answer to this criticism, Uber partnered with Metromile to create a better charging system for their partners’ insurance. This makes sure Uber drivers get the coverage they need whenever they’re on the road.

UberX Partners Can Now Worry Less About Shouldering Own Insurance

Uber offers up to $1 million worth of coverage for drivers who were on the job. However, they still needed to buy personal car insurance — even if they hardly ever used their vehicle for personal use. Thankfully, the partnership between Uber and Metromile changes things for drivers.

Metromile’s ridesharing insurance has a variable pricing plan aside from the monthly fee. With the partnership that took place, the insurance now toggles between personal insurance and Uber’s insurance package for its partners.

The Metromile’s ‘smart dongle’ works with the Uber app, which prompts it to charge the insurance to Uber instead of the driver from the moment the driver picks up a passenger to the time the passenger leaves the car. Therefore, the driver will only be paying for the insurance for the miles he drove looking around for passengers or when he used his car for personal purposes.

California, Illinois, and Washington state were the first ones to launch the program. Meanwhile, San Francisco and Chicago users were also able to receive push notifications to help them avoid parking tickets.

An Answer to Criticisms from the Taxi Industry

The taxi industry has been adamant in its criticisms against Uber. They went as far as handing out anti-ridesharing promotional materials to air out their complaints publicly. Other ride-sharing apps have been called out for this same issue since the personal insurance drivers opt for doesn’t offer coverage for the hours they are working for the ride-sharing company.

However, thanks to the joint efforts of Uber and Metromile, this problem has become a thing of the past. “Metromile has created an innovative product that responds to the needs of the insurance marketplace,” says Andrew Macdonald, Uber’s Regional General Manager.

Aside from helping their partners with the insurance system, this partnership also helps Uber lock-in their part-time drivers and get more commitment from them than before.

For more information about the Metromile insurance, check out this great review from The Rideshare Guy:

Do you think the Uber and Metromile partnership solves the UberX partner drivers’ insurance dilemma? Let us know in the comments!