If you drive for Uber, ensuring you have the right insurance coverage is crucial. Accidents can happen anytime, and having adequate protection can safeguard your income, vehicle, and health. Uber’s insurance policy is divided into three phases, each with varying levels of coverage. Here’s what you need to know about Uber insurance and how to protect yourself as a rideshare driver.
Phase 1: When the Uber App is Off
When your Uber app is off, you rely entirely on your personal auto insurance. This means that if an accident occurs during this time, Uber does not provide any coverage. It’s advisable to have comprehensive personal insurance beyond the basic coverage, as minimum coverage may not be enough, especially if the at-fault driver is uninsured or underinsured.
Without adequate personal insurance, you could be responsible for medical bills, lost wages, and vehicle repairs. Consulting an insurance broker to ensure you have sufficient protection is a smart move.
Phase 2: Waiting for a Ride Request
Once you turn on the Uber app and are waiting for a ride request, Uber provides some insurance coverage, but it has limitations. The company offers:
- $50,000 in bodily injury coverage per person
- $100,000 in bodily injury coverage per accident
- $25,000 in property damage coverage per accident
However, one critical issue in this phase is that Uber does not always offer underinsured or uninsured motorist coverage. If another driver without adequate insurance hits you, you could be left to rely on your personal insurance. In some states, like California, additional coverage is provided under Prop 22, which includes accident medical expenses up to $1 million, disability payments, and survivor benefits. But this varies by location, so it’s essential to check local laws.
Phase 3: On the Way to Pick Up a Passenger or During a Trip
Once you’ve accepted a ride and are either on your way to pick up a passenger or actively driving them, Uber provides the highest level of insurance coverage, including:
- $1 million in third-party liability coverage
- Uninsured/underinsured motorist injury coverage
- Contingent comprehensive and collision coverage (subject to a deductible)
This phase offers more protection, mainly to ensure passenger safety. While drivers are also covered, the claims process can be challenging. Uber may dispute medical bills, lost wages, and pain and suffering compensation, making it crucial to have a good personal health insurance plan to cover immediate medical expenses while claims are processed.
Key Takeaways for Uber Drivers
- Personal Insurance is Essential – Ensure you have adequate personal auto insurance, as Uber does not cover you when the app is off.
- Phase 2 Has Limited Coverage – While waiting for a ride request, Uber provides some liability coverage, but uninsured/underinsured motorist protection is not always included.
- Phase 3 Offers the Most Protection – Once you are en route to a passenger or actively transporting them, Uber provides up to $1 million in coverage, but claims can be difficult to process.
- Consider Additional Insurance – Having your own robust insurance policy, including health coverage, can help bridge gaps in Uber’s policy and protect you in case of disputes or delays in claims.
Driving for Uber can be a lucrative gig, but understanding the nuances of its insurance policy ensures that you’re adequately protected. Consulting with an insurance professional can help you tailor a plan that safeguards your financial and physical well-being.
