Uber Insurance Policies: The Ultimate Guide to Rideshare Coverage

Author: Ashley Nave Date: June 11, 2020


Whether you’re an Uber driver in downtown Seattle or catching a ride in New York City, it’s important to have some peace of mind whenever you’re taking a rideshare trip.

Uber has teamed up with four major auto insurance companies to help ensure the safety of every rideshare journey for both riders and drivers. The following article will give you a better understanding of Uber insurance policies and how coverage may vary.

If you or a loved one is ever in a rideshare accident, you’ll want to know who to call for legal representation. The rideshare accident lawyers with The Advocates are available 24/7 to answer any insurance questions you may have and help get you the compensation you are owed by law.

What is Uber’s Insurance Policy?

Uber offers auto insurance that is designed to help protect you as a driver or rider anywhere you go within the United States. As a driver, Uber maintains auto insurance on your behalf. Leading auto insurance companies such as Allstate, Farmers Insurance, Liberty Mutual and Progressive have been added to Uber’s insurance policy to provide coverage in the event of an accident.

You may be wondering what auto insurance provider will cover you. As of March 1, 2020, the insurance company that offers you coverage now depends on the state you live in. For example, if you are a driver in Washington state, then you’re covered by Allstate. You can refer to the map below to see what insurance company covers you as an Uber driver.

uber insurance
Photo provided by Uber

What Insurance is Available for Uber Drivers?

Uber insurance is designed to cover any driver who is operating the Uber app. If drivers are waiting for a rider or en route to pick one up, then they are covered by Uber’s policy. Check out the following insurance plans for rideshare drivers with Uber and how they vary:

1. Available or waiting for ride request

If your own coverage doesn’t apply, third-party liability will kick in, which insures any bodily injuries or damages caused by another driver to riders, pedestrians, passengers in other vehicles or property.

Third-party liability coverage:

  • $50,000 in bodily injury per passenger or driver
  • $100,000 in bodily injury per accident
  • $25,000 in property damage per accident
  • $1,000,000 if Uber driver is en route to pick up a rider

2. On the way to pick up riders and during Uber trips

If you’re en route to pick up an Uber rider, then the following coverage applies to you and your rider in the event of an accident:

Uninsured or underinsured motorist coverage:

  • $250,000 minimum coverage if passenger is present
  • Insures driver if another driver is at-fault without coverage
  • Insures a rider if another driver is at-fault without sufficient insurance
  • Includes hit and runs if driver cannot be identified

Contingent Comprehensive and Collision Coverage

  • Uber drivers must maintain comprehensive/collision coverage on personal insurance
  • Uber insurance will then kick in and provide physical damage coverage up to actual cash value
  • Driver must pay $1,000 deductible first

3. When driver is offline or app is not in use

The only time Uber insurance does not apply is when the app is not being used by the driver, otherwise “offline,” or when their own coverage doesn’t kick in.

Personal insurance coverage

  • Personal coverage and insurance applies when drivers are not using the Uber app

Frequently Asked Questions from Uber Driversuber insurance

Do I need rideshare insurance with Uber?

Luckily, Uber is required to provide auto insurance to drivers when they are operating the rideshare app and are essentially “on the clock” for the company. Many personal insurance companies now provide rideshare drivers, including Uber and Lyft, insurance endorsements for any additional coverage a driver may want. Uber does not require you to have this additional coverage when you sign up as a rideshare driver. But if you’d like this coverage, you should contact your personal insurance company for more details.

Will Driving for Uber Increase My Personal Insurance?

Call your insurance provider. Your own coverage is designed to meet the need of your personal use. When you start driving for Uber or even Lyft, you must report this to your own coverage and that will help you determine if your insurance will increase. There are often gaps between commercial insurance and personal policies, so you should work with an insurance agent to help bridge that gap and make sure you are covered in the event of an emergency.

Here’s what can and may happen if you don’t notify your insurance about driving for Uber:

  1. If you’re involved in an accident, your personal coverage will not pay out your claim
  2. Your personal insurance may cancel your policy
  3. Your personal coverage may refuse to offer you insurance in the future

The best advice we can give you if you’re planning to become a rideshare driver is always inform your personal coverage plan first.

Can driving for Uber invalidate my personal auto insurance policy?

Possibly. Driving for a service like Uber X might curb you from having your own coverage plan. Some personal auto insurance policies exclude coverage for various reasons, one often including “driving-for-hire.” This is considered commercial driving to personal coverage.

You should always check with your insurance company before becoming a rideshare driver to see if your current plan covers “commercial driving.” If your plan does not include commercial driving, then you may want to purchase outside coverage. However, this option may not be financially feasible for part-time drivers.

Do I need a commercial driver’s license to drive for Uber?

It depends. If you strictly drive for Uber X or a similar rideshare service, then you are technically driving professionally when you pick up a passenger. While you are an independent contractor, some states may consider you as a commercial driver. If that’s the case for the state you drive in (which you can call your state’s DMV to find out), you may be required to carry a commercial driver’s license. It’s important to note that this may only apply in some states for drivers who work for Uber as a full-time job.

How to Become an Uber Driver

If you’re not already driving for Uber and would like to become a professional driver, then great. Uber drivers can make anywhere from $14.26 an hour (Houston, TX) to $21 an hour (San Jose, CA), depending on where you live. In order to become an Uber driver, there are several requirements you must meet.

  1. Must meet the minimum age requirement

This requirement solely depends on the city you live in. If you want to drive in Seattle, for example, you must be at least 21 years old. Which is applicable to most cities in the U.S.

  1. Need to be a licensed driver for at least one year

If you’re driving in the United States, you must have at least one year of driving experience. On top of that, if you are 23 years old you will need 3 years of driving experience.

  1. Required to have a valid driver’s license

Any person driving Uber with a fake driver’s license will be terminated immediately and subject to punishment.

  1. Car needs to be a 4-door vehicle

If you plan to drive for Uber, you must have a 4-door car, minivan, or truck. Manual transmission is also accepted.

Along with the minimum requirements, Uber mandates that you provide required documents, such as your license, proof of residency, proof of vehicle insurance and a driver profile photo. Once you are all signed up, then you will complete a driver screening in which Uber will take a look at your driving history and criminal record.

What You Should Do in the Event of an Uber Accident

One of the most important values that Uber promotes is their commitment to the safety of others. Being in any kind of auto accident can be scary and difficult to process in the moment. As an Uber driver, the first thing you should do is make sure you and your rider(s) are safe. The following steps are recommendations from Uber:

  1. Check on everyone’s safety
  2. Call the police and other emergency personnel, if necessary
  3. Document the entire scene of the accident – photos, videos, witness statements
  4. Get the contact and insurance information of the driver(s)
  5. Contact Uber in the HELP section of the Driver app, select Trip Issues and Adjustments and then “I was in an accident”
  6. You can also call Uber support in the HELP section by tapping Call Support

When to Call a Rideshare Accident Lawyer

If you were in an Uber accident through no fault of your own, you will need the best legal representation on your side. Whether you were driving or the rider, our rideshare accident lawyers with The Advocates are here to make sure you are fully compensated for your injuries and losses.

We will work with you each step of the way and negotiate with insurance adjusters on your behalf. While you focus on recovering, The Advocates will focus on the rest. Don’t wait to contact a rideshare accident attorney today. You can call us anytime at 206-452-4200 or chat online here with an attorney. You deserve an Advocate.

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