The problem is that most people don't even know this is such a crucial matter or one at all. This is everything you need to know about your rideshare insurance and a super quick fix if you aren't covered.
Let's start by breaking down how Uber's (and others') driver-partner insurance works with your personal auto policy. The following information is correct from their website.
If you don't want to read the entire explanation, this other graphic gives you the crucial points. They are so important, I didn't want you to miss them!
Offline or when the app is offYour chosen personal insurance company and coverages apply. Uber does not apply here at all.
Available or waiting for a ride requestUber maintains the following auto insurance on your behalf in case of a covered accident.
Third-party liability if your personal auto insurance doesn't apply¹
- $50,000 in bodily injury per person
- $100,000 in bodily injury per accident
- $25,000 in property damage per accident
En route to pick up riders and during tripsUber maintains the following auto insurance on your behalf in case of a covered accident.
- $1,000,000 third-party liability
- Uninsured/underinsured motorist bodily injury
- Contingent comprehensive and collision
- Up to the actual cash value of the car ($1,000 deductible)
- Only if you also maintain comprehensive and collision coverage on your policy
"Driving passengers for a fee" is a restrictive business insurance class that is excluded by every standard personal auto policy and even most business auto policies. The reason is the increased chances of an accident or liability claim.
This poses two significant problems for drivers.
- You may have noticed above that in "looking for passengers," Uber only offers coverage for liability and not damage to your car. So if you have a wreck during this time, you are stranded, and any claim to fix your vehicle will be denied.
- If your insurance company finds out you are using your car for excluded activities, they will cancel your policy (with proper notice, of course.)
Insurance companies soon began to offer a unique rideshare enhancement for a small cost to close any gaps in coverage while you wait for your next rider.
Most companies offer this in some form. If you drive for Uber, Lyft, or a different rideshare platform, please adequately cover yourself! A few bucks now could save you thousands later.
If you have any questions or want to know how much rideshare coverage would cost to add, drop a comment or go to my agency web page to send me a direct message. Safe driving!