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Over the last several years, ride services have become more advanced and are now some of the most popular forms of transportation. The short answer is yes. For instance, Uber, a ridesharing service that competes with taxis and other carpooling options, enables passengers to hail a ride from a smartphone app and arrange for the car to pick them up. For this reason alone, you should have car insurance for Uber drivers if you'd like to do this type of work.
Generally, Uber costs less than a taxi. Uber has exploded in use across the globe and even offers other car services known as UberX in which local drivers respond to notifications on the Uber app to drive customers in their own non-luxury cars. What differentiates Uber from the traditional taxi is the fact that almost anyone can drive for Uber. Uber does require certain qualifications before anyone can start driving for the company, including insurance. These limitations include age, health, completion of driver’s test, passing a background check and car insurance.
What’s Rideshare Insurance?
For most car insurance companies, rideshare insurance is an additional type of coverage that is available for purchase. Car insurance to drive for Uber is another form of auto coverage for drivers of ridesharing companies like Uber. While some insurance companies provide a ride-hailing endorsement that you can add to your existing policy, others allow you to purchase a full ridesharing insurance policy that is separate from your existing auto insurance policy. That way it combines personal and business coverage into one policy.
Why You Need Car Insurance to Drive for Uber
Car insurance to drive for Uber is very important, so investing in rideshare insurance to protect you in the event of an accident is crucial. You run the risk of losing your personal auto coverage, falling into coverage gaps for accidents that occur while you are ridesharing — or driving for on-demand deliveries — and paying out of pocket for repairs, injuries and more if you are not covered by rideshare insurance.
For the most part, rideshare insurance is typically less expensive than conventional commercial insurance policies when you buy a rideshare policy that includes damage coverage and passenger injury coverage. Uber’s terms and qualifications require drivers to have a few different forms of insurance.
How Much Does Uber Pay for Insurance?
Uber carries $50,000 in liability insurance for its drivers, $100,000 per covered accident and $25,000 for property damage. The same is true of car insurance for Uber Eats drivers. Remember, the Uber certificate of insurance can be found in the app. Drivers should keep the Uber insurance phone number on their person at all times to handle any Uber insurance issues.
Third-Party Liability Insurance
A third party is considered someone or something other than yourself or your vehicle. So if you are involved in an auto accident, the third party would be the other driver and/or that person’s vehicle. Under this form of insurance, bodily injury and property damage caused to a third party are covered if they arise from a covered accident. Third-party insurance is necessary to drive for Uber. Uber driver insurance cannot be avoided, especially because you want that extra level of protection.
Uninsured and Underinsured Motorist Bodily Injury Insurance
Another insurance that Uber likes to ensure drivers have is uninsured and underinsured motorist bodily injury insurance. This type of insurance covers injuries you and your riders suffer if involved in an accident while driving for Uber and another driver is deemed to be at fault for the crash — especially if that driver doesn’t have sufficient insurance to cover the damages. This insurance policy might cover you should you be involved in a hit-and-run crash.
Contingent Comprehensive and Collision
Uber drivers who maintain comprehensive and collision coverage on their personal insurance will reap the benefits of Uber kicking in to provide protection for physical damage to their vehicles. This can even include paying for the actual cash value of the vehicle, no matter who is at fault. However, be aware that you must pay a $2,500 deductible before the coverage goes into effect. There are specific vehicles offered through the Vehicle Marketplace that are subject to a $1,000 deductible as well. The best rideshare insurance should at least meet the minimum coverage levels, but you can purchase more.
Best Car Insurance for Uber Drivers
Car insurance to drive for Uber is maintained on your behalf. The top automotive insurance companies help protect you and your riders should an accident occur while driving for Uber. Uber is proudly associated with commercial auto insurance companies that each offer coverages best suited to meet your needs. While you may feel you have found the best place to purchase Uber car insurance, check out these carriers for more information and options.
- Pay-per-mile insurance from an established company
Best for Personal Injury: Allstate
Allstate is the best for Uber drivers when it comes to personal injury protection because your injuries, lost wages and other health costs are all covered after a (covered) accident.
Allstate eases the pressures and stress from dealing with personal injuries when you’re purchasing Uber insurance coverage or other types of auto insurance.
Best for Liability Coverage: Farmers Insurance Group
With Farmers Insurance Group, up to $10 million cover costs of liability coverage. The best example of this would be if you were involved and held liable for an auto accident with multiple vehicles. Say the cost to cover the damages and injuries is $700,000, but your liability insurance only covers $500,000.
In this circumstance, you would be responsible for the remaining $200,000 out of your own pocket. Farmers insurance uses the umbrella policy method to step in and help cover what traditional policies don’t, which makes it the best option for Uber drivers.
- Total car replacement or better car upgrade collision coverage
Best for Accident Forgiveness: Liberty Mutual Insurance
You also can add accident forgiveness to your insurance policy. Under this type of coverage, your price won’t increase because of your first accident.
In other words, your rate is protected if you need to file a claim because of your first accident. You would want to research accident forgiveness with Liberty Mutual while driving for Uber to ensure you are safe from higher premiums.
- Drivers with consistently good driving habits
Best for Comprehensive Coverage: Progressive Insurance
Progressive is the top insurance to cover the costs of repairs for your vehicle. Comprehensive car insurance protects your vehicle for just about everything aside from a collision with another vehicle.
Under comprehensive protection, damages covered include civil disobedience, windshield damage, storm damage from rain, hail or flooding, rental car damage (if your policy extends coverage to rentals), theft or vandalism. Be sure to reach out to a Progressive agent to set up coverage for you when you drive for Uber.
- Roadside assistance
Best for Roadside Assistance: AAA Auto Insurance
AAA is best known for helping stranded motorists. While driving for Uber, having AAA roadside assistance can put your mind at ease if you get a flat tire, are locked out of your vehicle, need to jump-start a dead battery or tow your car to a repair shop.
The best roadside assistance program for Uber drivers is AAA.
How to Compare Car Insurance for Uber Drivers
When comparing rideshare insurance for Uber drivers it is helpful to think about what company you would like to use and research the cost above a traditional policy. Insurance companies like Allstate, Erie Insurance, Mercury General, Safeco Insurance, State Farm Insurance and USAA are just a few to check out.
How to Buy Car Insurance for Uber Drivers
When looking to purchase rideshare insurance for Uber drivers there are a few key components to consider as either a standalone policy or added to an existing insurance policy. You want to make sure rideshare insurance is either a hybrid or add-on from your personal auto insurance — not stand-alone coverage.
You are unable to have Geico for your personal auto policy and buy rideshare insurance from Liberty Mutual. Tell your own auto insurer that you will be driving for a rideshare company. Calculate the gaps between your personal and rideshare company policies. These policies can vary among all different companies. Don’t forget to ask your current insurer whether it offers rideshare insurance to fill in coverage gaps. See whether you can get a quote for a commercial policy.
Protect Yourself With Car Insurance as an Uber Driver
The key takeaways from rideshare insurance center around rideshare gaps, rideshare policies, availability and risks involving personal coverage. It is important to do your research and make informed decisions for the best results. When executed properly, rideshare insurance can assist you immensely and prevent you from experiencing any further costs in damages or injuries. Now is the best time to research rideshare insurance companies and decide on the best car insurance if you want to drive for Uber.
Frequently Asked Questions
Q. Do I need rideshare insurance?
Uber maintains auto insurance designed for ridesharing on your behalf when you are driving on Uber’s platform. Many personal insurance companies provide endorsements for added coverage for Uber drivers, but this is not required for you to sign up to drive with Uber. You may contact your insurance company for details.
Q. If I am in an accident, will insurance from Uber cover the damages if I was in a rental car?
No, it won’t. If you have collision and comprehensive coverage on your personal policy, the insurance provided by Uber will activate if you are involved in an accident. If applicable, this insurance goes toward repairs and replacement for your car up to its actual cash value. You must pay a $2,500 deductible before coverage applies.