Do you need special insurance to drive for Uber?

Every Uber driver will tell you that they are automatically insured against some risks when using the app. However, they claim that there are gaps in protection depending on the driver’s status. Additionally, while a driver’s app is offline, Uber’s insurance cover for that driver will be dormant. That means, uber’s insurance alone isn’t enough and you might need some kind of special insurance to drive for Uber.

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This comprehensive guide dives into the detail of the specifics offered by Uber insurance coverage, the limitations and benefits, how much ridesharing insurance costs in the USA, and whether you will need special insurance coverage other than what Uber offers to drive for them.

Do you need special insurance to drive for Uber?

Whether you’re using your personal car for Uber or any other rideshare service, you’re required to have at least liability coverage for third parties in your vehicle, along with optional protections for yourself and your vehicle.

As we’ve noted above, Uber’s insurance coverage alone isn’t enough to safeguard you and your car on the road. For instance, when you’re waiting for a ride request, Uber’s coverage is limited, and your personal auto insurance might not cover you if you’re using your vehicle for business purposes.

To bridge this gap, many drivers opt for rideshare insurance, which ensures you’re fully protected whether you’re waiting for a passenger, en route to pick them up, or transporting them. This coverage offers peace of mind and helps avoid potential coverage issues with standard auto policies.

What does Uber insurance include?

While ridesharing with Uber, the company will offer different levels of coverage depending on the stage of your trip. When you’re logged into the app but waiting for a ride request, Uber provides liability coverage for injuries and property damage, but not comprehensive or collision coverage.

Once you accept a ride and are en route to pick up passengers or transporting them, Uber’s insurance increases to include liability coverage up to $1 million, along with uninsured/underinsured motorist coverage and contingent comprehensive and collision coverage. However, note that deductibles and coverage limits apply, so understanding these details is crucial.

Can I do Uber eats without insurance?

In most cases, you cannot do Uber Eats without insurance. This is because Uber requires its drivers and delivery partners to have at least the minimum vehicle insurance mandated by the state. Typically, this includes:

• Liability coverage: This policy will protect you from financial losses related to third-party incidents.
• Bodily Injuries: If you cause an accident while driving for Uber and your passengers are injured, your insurance will cover their medical expenses.
• Property Damage: Any property damage caused to another person will also be covered by your insurance.

While Uber does provide insurance coverage, it only applies during your working hours (when making deliveries). If you are not actively engaged in Uber Eats activities and get into an accident, your personal auto insurance policy is expected to cover any damages or injuries.

How much is rideshare insurance in the USA?

Rideshare insurance in the US is generally affordable, with costs varying across different insurance companies. The price also depends on the level of coverage you choose, which may include:

• Liability Coverage: Protects against bodily injury or property damage to third parties.
• Collision Coverage: Covers the repair or replacement costs of your vehicle in the event of an accident.
• Comprehensive Coverage: Protects against damage from uncontrollable factors like fires or vandalism.
• Uninsured/Underinsured Motorist Coverage: Provides protection if you’re involved in an accident with a driver who is uninsured or underinsured.

Considering these coverage options, your insurance provider, and other factors, the average cost is around $52 per month for basic coverage or $615 annually for full coverage. For example, State Farm charges $50 per month for full coverage, while Mile Auto offers liability coverage for as low as $38 per month or $457 annually.

What are some of the best insurance companies for Uber drivers?

If you are a driver ridesharing for Uber, here are some of the companies that can offer extra and special insurance to help in safeguarding you and your vehicle while you drive on the road in moments when Uber policy doesn’t cover you:

1. State Farm

State Farm offers rideshare coverage as an add-on to their auto insurance, costing 15% to 20% more. This coverage protects Uber drivers while working, including damage to the car, liability for injuries, and medical payments.

2. Progressive

With Progressive, you need to add rideshare coverage to your personal auto policy. This coverage applies during times when you’re working, such as making deliveries or transporting passengers, and fills gaps when your Transportation Network Provider (TNC) insurance doesn’t cover you, like when waiting for a rider.

3. Allstate

Allstate’s rideshare insurance bridges the gap between your personal auto policy and TNC insurance. It provides coverage for incidents that may not be covered by either, preventing you from having to pay out-of-pocket for vehicle damage or injuries to others.

4. USAA

USAA offers affordable rideshare insurance, starting at around $50 per month. It provides coverage for you, your vehicle, and passengers. Their gap coverage is available in certain states, including North Carolina, Montana, New York, and Michigan.

5. Geico

Geico offers a hybrid rideshare and auto insurance policy, combining both under one plan. This ensures coverage for personal and rideshare use, with the added benefit of discounts to lower your premium.

Editor’s Remarks

As a rideshare driver, it’s important to have the right coverage that fills the gaps between your personal auto insurance and Uber’s coverage. Both Uber and your auto insurance have certain limitations, and without filling these gaps, you may face financial losses in the event of injury or vehicle damage, requiring out-of-pocket payments. Many companies offer rideshare insurance starting at $38 per month, so it’s worth discussing your options with your insurance provider to ensure you’re fully protected against various road risks.

We hope this comprehensive guide has helped you understand what special insurance policy you need to drive for Uber, the extent or coverage, and circumstances when standard Uber insurance may not cover you. Keep in mind that companies like Allstate, Progressive, and State Farm also allow you to add rideshare coverage to your auto insurance, making it easier to get comprehensive protection.

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