Do You Need Commercial Auto Insurance for Uber?
With flexible schedules, many people are looking to become an Uber driver for extra cash. While it may not be the very top of the list of considerations, proper car insurance for Uber is something for you to look at when making your decision to become a rideshare driver.
With the popularity of Uber and others like them, insurance companies acknowledge the need for rideshare coverage, however many are only testing the waters, and availability varies by state and company.
It’s also important to understand that your personal auto insurance policy will not cover transporting riders and should a claim occur while signed into the app, there is no coverage provided. The insurer may also choose to cancel your policy due to the complications of when you are considered “online” or “offline.”
But don’t let this deter you from earning some extra money, Uber does provide their driver’s coverage under their commercial insurance policy. But it’s essential that you read and understand what is covered under these policies and make sure you know how and when you are protected.
Insurance Coverages for Uber Drivers
Your personal auto insurance policy may give coverage to you as a driver if you are “offline” but it is essential to discuss it with your agent if you are confused about what coverage you have on your policy.
The commercial coverage provided by Uber to you while driving is separated into stages, or periods, throughout your trip. These stages include offline, available, en route, and on a trip.
- For Uber drivers when you are “Available” Liability amounts are 50k/100k/25k these limits represent Bodily injury/Total Per Accident/Property Damage
- When “En Route” Liability amounts are $1 million and Uninsured/Underinsured Motorist are $1 million.
- During the “Trip” (meaning you have passengers) Uber offers a $50,000 Comprehensive/Collision Limit with a $1000 deductible.
What if I am in an Accident?
If you are in an accident during your trip or on the way to a fare, Uber will provide coverage medical expenses and other damages up to $1 million, even if the driver involved is an uninsured or underinsured driver. The $1 million limit is much higher limit than most drivers carry, even taxi drivers working in big cities carry lower limits, this $1 million limit should cover most accidents.
Through Uber, you also have a bucket of money to draw from with the comprehensive and collision coverage, the catch being you have same limits of coverage on your personal auto policy. Bear in mind that the deductibles are high on the master policy, and the coverage only applies while passengers on your vehicle.
If the accident happens while waiting for a fare, you’ll need to file a claim with your insurance provider unless your state law or ridesharing endorsement specifies otherwise. If the insurance carrier denies the claim or you’re not entirely paid back, coverage from Uber will kick in. However, ridesharing companies’ limits in these situations are relatively low. If you have ridesharing coverage with your personal insurance company, it is designed to cover this gap.
When to Buy Commercial Auto Insurance
While the line between personal and commercial driving may not be apparent for those drivers who rideshare, it’s usually more clear-cut for other kinds of business owners. If your vehicle is used for anything beyond driving to and from work, you’ll likely need a commercial auto insurance policy in addition to a personal one.
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