Uber is a popular ride-sharing service that connects passengers with drivers through a mobile application. The company operates in over 600 cities worldwide and has millions of users. However, one of the major concerns for drivers and passengers is insurance coverage. Uber provides insurance coverage for its drivers, but the coverage varies depending on the stage of the trip. In this article, we will discuss the different types of insurance coverage that Uber provides and what you need to know about Uber insurance requirements.
What is Uber Insurance?
Uber provides insurance coverage for its drivers, passengers, and third parties involved in an accident while using the Uber platform. The insurance coverage provided by Uber depends on the stage of the trip – before, during, or after an active ride. The insurance coverage also varies depending on the state and country where the Uber trip takes place.
Before we discuss the different types of insurance coverage provided by Uber, let’s define some important terms:
Uber Insurance Coverage During Different Stages of a Trip
Uber provides insurance coverage to its drivers and passengers during different stages of the trip. The following are the different stages and types of coverage provided by Uber:
Period 0: App is Off
During this period, when the driver is not using the Uber app, no insurance coverage is provided by Uber. The driver’s personal insurance policy is in effect. It is important to note that personal insurance policies may not cover commercial activities, such as driving for Uber.
Period 1: App is On, Waiting for Rider
This period starts when the driver turns on the Uber app and is waiting for a rider request. During this period, Uber provides the following insurance coverage:
Insurance Coverage |
Limit of Coverage |
|---|---|
Third-Party Liability |
Up to $50,000 per person, $100,000 per accident, and $25,000 for property damage. |
Contingent Comprehensive and Collision |
Up to the actual cash value of the vehicle with a $1,000 deductible. |
Uninsured/Underinsured Motorist Bodily Injury |
Up to $50,000 per person and $100,000 per accident. |
The coverage is contingent on the driver maintaining personal insurance coverage. It is important to note that personal insurance policies may not cover commercial activities, such as driving for Uber. The contingent comprehensive and collision coverage is only applicable if the driver’s personal insurance policy does not provide comprehensive and collision coverage during this period.
Period 2: Rider is in the Car
This period starts when the driver accepts a rider request and the rider is in the car. During this period, Uber provides the following insurance coverage:
Insurance Coverage |
Limit of Coverage |
|---|---|
Third-Party Liability |
Up to $1 million per accident. |
Uninsured/Underinsured Motorist Bodily Injury |
Up to $1 million per accident. |
Contingent Comprehensive and Collision |
Up to the actual cash value of the vehicle with a $1,000 deductible. |
The coverage is primary and applicable even if the driver’s personal insurance policy provides coverage during this period. The driver’s personal insurance policy will only be used if the driver’s insurance policy limits are higher than Uber’s coverage limits.
Period 3: Rider has been Dropped Off
This period starts when the rider is dropped off and ends when the driver turns off the Uber app. During this period, Uber provides the following insurance coverage:
Insurance Coverage |
Limit of Coverage |
|---|---|
Third-Party Liability |
Up to $1 million per accident. |
Uninsured/Underinsured Motorist Bodily Injury |
Up to $1 million per accident. |
Contingent Comprehensive and Collision |
No Coverage. The driver’s personal insurance policy is in effect. |
The driver’s personal insurance policy is the primary coverage during this period. Uber’s insurance coverage only applies if the driver’s personal insurance policy does not provide coverage. Uber’s contingent comprehensive and collision coverage does not apply during this period.
FAQ
Do Uber Drivers Need Commercial Insurance?
Uber requires its drivers to maintain personal auto insurance that meets the minimum requirements of the state where the driver is located. However, personal auto insurance policies may not cover commercial activities, such as driving for Uber. It is important for Uber drivers to check with their insurance company if their personal policy covers commercial activities or if they need to purchase commercial insurance.
Does Uber’s Insurance Coverage Apply to Personal Vehicle Use?
No, Uber’s insurance coverage only applies when the driver is using the Uber platform to transport riders. The driver’s personal auto insurance policy is in effect for personal use of the vehicle.
What Happens if an Accident Occurs During the Waiting Period (Period 1)?
If an accident occurs during the waiting period (Period 1), Uber’s coverage is contingent on the driver maintaining personal insurance coverage. If the driver’s personal insurance policy does not provide coverage, Uber’s insurance coverage applies. However, if the driver’s personal insurance policy applies, it is the primary coverage and Uber’s coverage is secondary.
What Happens if an Accident Occurs During the Period when the Rider is in the Car (Period 2)?
If an accident occurs during the period when the rider is in the car (Period 2), Uber’s insurance coverage is primary and applicable even if the driver’s personal insurance policy provides coverage during this period. The driver’s personal insurance policy will only be used if the driver’s insurance policy limits are higher than Uber’s coverage limits.
What Happens if an Accident Occurs During the Period When the Rider has been Dropped Off (Period 3)?
If an accident occurs during the period when the rider has been dropped off (Period 3), the driver’s personal insurance policy is the primary coverage. Uber’s insurance coverage only applies if the driver’s personal insurance policy does not provide coverage. Uber’s contingent comprehensive and collision coverage does not apply during this period.
Is the Insurance Coverage the Same in Every State?
No, the insurance coverage provided by Uber varies depending on the state and country where the Uber trip takes place. It is important for drivers and riders to check the specific insurance requirements in their state or country.
Conclusion
Uber provides insurance coverage for its drivers, passengers, and third parties involved in an accident while using the Uber platform. The insurance coverage varies depending on the stage of the trip – before, during, or after an active ride. It is important for Uber drivers and riders to understand the different types of insurance coverage provided by Uber and their personal insurance policy requirements. Uber drivers should also check with their insurance company if their personal policy covers commercial activities or if they need to purchase commercial insurance.