TAMPA, FL - A lot of us have probably used Uber’s services, but how many of us drive/have driven for Uber? And how the heck is the insurance handled? 

Uber is a ridesharing service, similar to a taxi, that started back in 2009 in San Francisco, CA. Basically, passengers are able to search for a nearby Uber in their area from an app on their Smartphone, see the allotted time until they reach their destination, how much the ride would cost, and who their driver is (along with how many stars and ratings they’ve received from past passengers). 

If something were to happen while an Uber driver picks up a passenger, like a car accident for example, who’s covered? How much coverage is out there? Are they covered by Uber?

To drive for Uber, you either need a personal auto insurance policy (with coverage for rideshare) or a commercial auto insurance policy.  If something were to happen, like a car accident, Uber will only cover you if the app is turned on. BUT, Uber still has classifications as to what kind of coverage a driver would be eligible for. And they’ve divided it into periods:

Period 1: The Lowest of the Low

• This coverage is when an incident occurs while your app is on and waiting to receive a ride request. Comprehensive and collision coverage is not offered during this period, and “Uber only offers liability coverage of $50,000 per person bodily injury, up to $100,000 per incident and $25,000 of property damage coverage during Period 1.” (Insurance.com, “Uber Insurance Explained”). 

Periods 2 and 3 are very similar;

Period 2: You’re on your way to pick up a passenger after you’ve accepted the request.

Period 3: You have a passenger(s) in your car. 

• The coverage during these periods is way better, but your comprehensive and collision coverage will definitely have some red flags. Uber will offer up to $1 million in coverage when a driver is on their way to pick up a passenger or if they physically have them in the car.

• Uber will also cover you if you get into an accident with a passenger, and the person at fault doesn’t have insurance or is underinsured. 

• As far as comprehensive and collision goes, Uber promises to pay coverage up to the amount of the driver’s car’s value but it comes with a $1,000 deductible. “For liability coverage, most insurance experts recommend $100,000 of bodily injury coverage per person, $300,000 of bodily injury coverage per accident and $100,000 of property damage coverage. Uber insurance coverage is significantly below these thresholds.” (Insurance.com, “Uber Insurance Explained”). 

In conclusion, if you have a personal auto insurance policy or commercial insurance policy when driving for Uber, they will provide coverage as an addition to yours if you’re involved in an accident. However, it’s always best to READ THE FINE PRINT before committing to anything. ALWAYS. 

Penny Gusner, senior consumer analyst for Insurance.com:

"The risk is more than insurance companies want to take on when a person is driving for commercial reasons, such as driving a person for money," Gusner says. "A person that drives others is on the road more, driving unfamiliar routes, is driving with strangers and all of this is a risk that a personal auto policy is not meant to take on. For that reason, insurance companies offer commercial policies for rideshare drivers or riders and endorsements, which drivers can pay extra for the extra coverage they need."

While these requirements are current, it’s best to research the parameters for your specific state to ensure you’re following proper guidelines. 

Most importantly, always MAKE SURE YOU’RE COVERED.

Sources:

Uber - Help

Insurance.com

Policy Genius

Answer Financial