Transportation is now more innovative than ever, wherein passengers can grab their smartphones and book a ride through mobile apps like Uber, which is one of the fastest-growing on-demand ride providers. It’s fast, convenient, and easy. That’s why it’s a great idea to be an Uber driver because you can drive your own vehicle (as long as it has passed Uber’s requirements) and choose the best time to work so you become your own boss.
But, of course, before considering to be an Uber driver, it’s important to understand when you are insured. Uber offers insurance to its drivers, but what does it cover? Know everything about Uber insurance by continuing to read below.
Uber Driver’s Insurance Requirements
For an Uber driver to be covered by their insurance policy, automobile liability insurance should be maintained on all vehicles the driver operates with equal to or greater than the insurance limits set as a minimum requirement for the state the driver lives.
Uber Insurance Coverage Before Accepting a Trip
From the time you tap “Go” on your Uber app, your Uber insurance coverage starts. In short, you have to be online waiting for a ride request with Uber so you’ll be covered by their insurance program.
Here’s the automobile liability coverage that Uber can provide their drivers:
- For the liability of the driver per person who has sustained bodily injury of a covered accident (50,000 USD)
- Per covered accident (100,000 USD)
- For property damage (25,000 USD), the driver is held responsible for a covered accident
Take note that this Uber insurance policy applies if the driver’s personal car insurance policy doesn’t provide coverage. Also, it applies to covered insurance policies but with less than the amount stated above. If ever your state requires additional coverage, expect that Uber will comply, such as underinsured or uninsured motorist coverage and personal injury protection.
Uber Insurance Coverage During a Trip
Uber drivers who already accepted a trip request or have a passenger on board are insured by Uber, with three things covered in case of an accident, including third-party liability coverage, underinsured or uninsured motorist bodily injury coverage, and collision and contingent comprehensive coverage.
Here are the details of each Uber insurance coverage during a trip:
- Third-party Liability Coverage: Uber provides coverage to riders, pedestrians, and passengers or other vehicles, injured during the accident. Also, it covers damaged properties. The amount of coverage limit is at least 1,000,000 USD, which differs from one state to another.
- Underinsured or Uninsured Motorist Bodily Injury Coverage: The Uber driver and the passengers are covered with Uber insurance if another driver is at fault, hit and runs, or doesn’t have enough insurance coverage. The amount of coverage limit varies from one state to another, which is at least 250,000 USD.
- Collision and Contingent Comprehensive Coverage: Regardless of the person who’s at fault, Uber can provide an actual cash value to cover physical damage. Of course, one requirement is maintaining a collision and comprehensive coverage on the Uber driver’s personal car insurance. You need to pay a deductible first before this insurance coverage applies, amounting to 1,000 USD.
How to File an Uber Insurance Claim
Uber drivers can immediately submit a claim from the Uber app directly if they are involved in an accident. Also, they can call Uber support. It means that you don’t have to file an insurance claim with your car insurance company because Uber will take charge and help you.
Quick Guide and Good-to-Know Facts About Uber Insurance Policy
- The insurance program of Uber doesn’t cover Uber drivers when the Uber app is closed. If the driver meets an accident, the personal car insurance policy of the driver will apply.
- Once you report a car accident to Uber, your account will be deactivated, and it will only get reactivated once Uber has cleared your car.
- If ever there are odds of an accident and it grows and becomes even more complicated, you’ll have to determine which insurance coverage should pay the hospital bills and damages. Contact a car accident lawyer if you deem it’s necessary.
- For Uber’s collision and comprehensive coverage to take effect, you should carry these coverage areas on your personal auto policy. Otherwise, you’ll need to shoulder all the costs to have your vehicle repaired if you’re at fault in an accident. You might also want to use your personal car insurance collision coverage (with deductibles) even if you’re not at fault, so you can get your vehicle repaired according to your own terms while waiting for your reimbursement.
Whether you’re aspiring to become one or you’re already an Uber driver, it’s important to know the important facts about Uber car insurance. With increased awareness and understanding, you’ll be able to comply with Uber’s requirements and know exactly what to do next and what to expect if ever an accident happens.