Unit 4 – Uber Driver Insurance

You may be wondering, “do you need Uber driver insurance?”  What types of driver insurance does Uber corporate provide?  Do you need extra insurance protection?

Keep in mind that to qualify to drive for Uber you need to have a personal automobile insurance policy and be named as a driver on the policy.

What Uber driver insurance does corporate provide?

Uber corporate provides a limited amount of driver insurance.

  • Uber’s insurance does NOT cover you when you don’t have the app on and in driver mode.
  • If you are logged in to driver mode and waiting for a ride request, then Uber covers:
    Contingent liability coverage with $50,000/$100,000/$25,000 limits. This provides secondary coverage that pays only for losses not covered by your personal automobile insurance policy.
  • If you have been in an accident while en route to pick up a passenger or have a passenger in your vehicle Uber covers:
    Commercial liability insurance with $1 million limit
    Uninsured/underinsured bodily injury with $1 million limit
    Contingent comprehensive and collision coverage with $1,000 deductible (only for driver’s with personal comprehensive and collision coverage)
    Minimum level of personal injury protection coverage where required by law.

While this may seem like excellent coverage there are a few issues.

  1. Uber will try to convince you to contact your personal insurance coverage first. They want to be secondary. They do not want to be the primary insurance coverage when you file a claim.
  2. Your personal insurance coverage may be VOID if you drive for Uber.  Depending on your policy they may consider this “commercial driving”.
  3. $1000 deductible may be higher than your usual deductible.
  4. Dealing with Uber on this issue may be difficult. They have had many complaints from drivers who have been accidents.

Do I need Uber driver insurance or hybrid rideshare insurance added to my personal insurance policy?

Probably. We can’t say for sure if you need an additional policy to cover you while driving for Uber.  We can say for sure that you need to check with your insurance company first.  Does your insurance company cover you if you are in an accident while driving for Uber?  We have heard from many drivers that had their policy cancelled because their insurance company considered this a violation of their insurance policy.

I personally contacted my insurance company to let them know I was driving for Uber.  I use USAA insurance.  USAA only charged me about $89 for 6 months to add this extra coverage to my policy. This is well worth my peace of mind while driving.  I also have my lower deductible that I use with USAA ($500 instead of $1000).

Many insurance companies are offering Uber driver insurance.  They may also refer to this as rideshare insurance or GAP insurance.    Not everyone will qualify for USAA as they are only available to veterans and their families.  Geico is another insurance company that is now offering insurance for Uber drivers. State Farm, Allstate, and Liberty Mutual are also offering rideshare insurance in some states.

For more information on what might rideshare driver insurance might need read this article from Allstate.

The main reasons Allstate suggests rideshare coverage for as an addition to your personal insurance are:

  1. Rideshare companies have different levels of coverage
  2. Different stages of the “ride” can be covered differently
  3. Ridesharing coverage may be contigent, which means you need to claim on your personal insurance first
  4. Ridesharing coverage may vary by state

Summary

As you can see Uber driver insurance is an important topic. Many drivers have found themselves in a difficult situation because they didn’t have Uber driver insurance when they were in an accident. Their own personal policies didn’t cover “commercial” driving. In some cases their personal policy was cancelled because they were in an accident as an Uber driver.

Although Uber does provide insurance it doesn’t cover everything. It doesn’t provide much coverage when you don’t have a passenger.

It’s better to be safe and pick up an extra GAP insurance or a rideshare insurance policy to cover you while driving for Uber. Check out: USAA, GEICO, Allstate, Liberty Mutual, and State Farm. They may offer rideshare coverage in your area.

Looking for more?

Return to Module 2 – How Uber Works.
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