One of the key aspects of Uber’s business model is to allow individuals to use their own vehicles to earn money by providing ridesharing and delivery services to passengers and businesses through the Uber platform. Obviously, to someone who’s looking for a side gig, this is such a flexible opportunity in terms of when and how often they drive. However, confusion spills in at the point of insurance. Most drivers wonder whether they will need commercial auto insurance or if their standard insurance policy is enough for Uber.

• Does motorcycle insurance also cover medical bills?
• Do you need insurance for a motorcycle in Florida?
• Does your motorcycle insurance policy also cover theft?
• Does auto insurance also cover water damage in my RV?

The idea here is to always be sure about where and when you will need standard auto insurance or commercial auto insurance. Our comprehensive guide explains the difference between the two, clearly highlighting when you will need commercial auto insurance, its benefits, and the limitations of standard auto insurance policies.

What is standard VS commercial auto insurance?

Standard and commercial auto insurance are both types of car insurance, but they serve different purposes and cover different types of vehicles and uses.

Standard auto insurance

Standard auto insurance policies are specifically designed for individuals who use their personal vehicles for everyday activities, such as commuting to work, running errands, or personal travel. Such policies typically you against bodily injury and property damage, damage to your car in an accident, non-collision damage like theft or natural disasters, and many more.

Commercial auto insurance

On the other hand, commercial auto insurance policies are designed for vehicles that are used for business purposes, including transporting goods, carrying passengers for a fee (Ridesharing or delivery drivers for Uber, Lyft, Bolt, Curb, etc), or hired and rented vehicles. These policies provide coverage found in standard auto insurance, but typically with higher liability limits and additional options tailored to business needs.

Do I need commercial auto insurance for Uber?

As we’ve explained above, driving for Uber falls under commercial auto insurance rather than standard or personal auto insurance policies. That means standard auto insurance policies will not cover any damage or claims during a rental, ridesharing, delivery, or other activities deemed commercial.

So, as an Uber driver, you will need to opt in for a commercial auto insurance policy for you to be sure of regular protection against unexpected events during ridesharing on the Uber platform or any other delivery service.

Does Uber offer commercial auto insurance for drivers?

Uber does not directly offer commercial auto insurance for drivers in the traditional sense, but it does provide specific insurance coverage for drivers while they are using the Uber app. In other words, Uber maintains commercial auto insurance to help protect the driver in case of a covered accident while ridesharing on the Uber app or between accepting a trip and reaching the rider’s destination.

This coverage is designed to work in conjunction with a driver’s personal auto insurance and covers different phases of the rideshare process.

How does Uber commercial auto insurance work?

When the Uber app is off, the driver’s personal auto insurance policy is in effect. Uber does not provide any coverage during this time, so the driver must rely on their standard auto insurance. On the other hand, when the driver has the app on and is waiting for a ride request, Uber provides liability coverage, but only as secondary insurance.

Once the driver accepts a ride and until the passenger is dropped off, Uber’s insurance provides more comprehensive coverage including bodily injury and property damage, with higher limits, usually up to $1 million depending on your state. You can check Uber insurance for riders in different states to confirm their offerings.

Vehicle and driver requirements for Uber platform

To be eligible for the Uber platform, a vehicle must meet several specific requirements that ensure it is safe, reliable, and suitable for transporting passengers.

1. Vehicle Age: The vehicle typically must be no older than 10-15 years, depending on the city. Some cities may have stricter requirements, only allowing vehicles that are 10 years old or newer.

2. Vehicle Type: Your vehicle must be a four-door car, truck, or minivan that can comfortably seat at least four passengers, not including the driver. Two-door cars, certain compact vehicles, and trucks with only two seats are not eligible.

3. Vehicle Condition: Cars must be in good condition with no cosmetic damage or missing parts. It should pass a vehicle inspection to ensure it meets safety standards.

4. Insurance: Your vehicle must be covered by a personal auto insurance policy that meets state requirements. In some areas, you may also need to carry a rideshare endorsement or commercial insurance.

5. Registration: Cars must have valid registration, which may be in the driver’s name or someone else’s name. In some cases, temporary registrations are accepted.

Bottom line

As a ridesharing or delivery driver for Uber, Lyft, Bolt, Curb, etc, you will need a commercial insurance policy which can provide comprehensive protection against a range of risks and can ensure business continuity in the event of an accident or other covered incident. Standard auto insurance in most cases may not work for this kind of activity. Hence, we recommend that you discuss with your insurer to understand the risks in it and extent of coverage that will work best for your ridesharing vehicle.

Frequently Asked Questions