NATIONAL—Uber requires their drivers to have car insurance, but if the app is on, then they provide supplemental insurance coverage.
According to Uber, here’s how it works:
Drivers are covered by their own insurance when they are offline. A driver is protected by a commercial automobile insurance policy with $1 million of liability per incident. This happens as soon as a driver accepts a trip and until it concludes.
In addition, Uber’s policy offers $1 million uninsured/underinsured motorist bodily injury coverage to all occupants of the rideshare vehicle. This is only in the event another motorist causes an accident without adequate insurance (i.e. a hit-and-run).
If a ride-sharing driver’s own policy includes comprehensive and collision insurance, Uber’s policy covers physical damage to the vehicle that occurs during a trip up to its actual cash value, with a $1,000 deductible.
During the time that a ride-sharing driver is available but between trips, most personal auto insurance will provide coverage. However, if the driver does not have applicable coverage, Uber maintains a policy that covers bodily injury and property damage. The policy cover bodily injury up to $50,000/individual/accident with a total of $100,000/accident and property damage up to $25,000.
Today, there are three (3) scenarios that Uber uses in determining liability…
Offline: The driver is using his vehicle for personal purposes and is not available to pick up passengers.
The Uber driver is covered by their own auto insurance it they are not available to pick up passengers. Liability and coverage limits are determined by the individual policy and state law.
Between Trips: The driver is available to pick up passengers, but is not carrying a passenger at the time of the crash. In other words, the driver has the app “on” and is waiting for a request.
If the driver is available, but not carrying passengers, the driver is primarily covered by their own personal insurance company. However, Uber provides additional contingent liability coverage of $50,000 per injury (up to $100,000) and up to $25,000 in property damage. This contingent liability coverage must be requested, and is available if the driver’s personal insurance doesn’t cover all the damages.
During Trip: The driver has accepted a trip or is carrying an Uber passenger. The app is on, the trip was requested, and the driver is on the way to pick up/deliver a passenger.
If an accident occurs while the driver is carrying a passenger, all individuals are covered under Uber’s $1 million policy. Uber also provides $1 million of uninsured/underinsured insurance coverage for accidents with uninsured/underinsured drivers.
Driving For Uber Could Invalidate Your Personal Auto Insurance Policy
Your personal auto insurance policy may not provide coverage for you if you drive for a service like Uber. Personal car insurance policies have a list of exclusions, and often include “driving-for-hire,” or a variation thereof. If you are driving for Uber or a similar service, you should check with your insurance company to confirm whether your policy covers this “commercial driving.” If it does not, you will want to consider purchasing supplemental commercial auto insurance, though for many part-time drivers, this may not be financially feasible.
Injured while riding in or driving for Uber? However, you need an experienced personal injury attorney with a track record of taking on big insurance companies. Call TRIPP LAW FIRM – Personal Injury Law at (727)398-2900 in Pinellas/Pasco County, (863)666-0380 in Polk County, and (407)850-8680 in Orange/Osceola/Seminole County, for an immediate, confidential case evaluation. Also, there is NO Fee and NO Costs if we do not obtain a Recovery for YOU!
At the TRIPP LAW FIRM, we have the necessary experience to protect you and your family’s legal rights and pursue the appropriate damages. Thus, don’t hesitate to call us. We answer our phones 24/7/365. The injury law team and staff private investigators at the TRIPP LAW FIRM are ready on a moment’s notice.
TOLL FREE: (888) 392-LAWS (5297)
Thinking of Driving with Uber? This Is What You Need to Know, UBER NEWSROOM (Jun. 30, 2016), available at https://newsroom.uber.com/227972/.