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What Is Uber Driver Insurance?

Uber Driver Insurance

With all the talk of Uber recently, you might have considered signing up to drive for the service in order to earn some extra cash. You might also wonder about the implications there might be when it comes to your car insurance or car insurance quotes and who would pay in the event of an accident. Read on to learn all about what steps you may have to take to get Uber Driver insurance

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 UberX. This is because personal car insurance policies have a list of exclusions, and they often include “driving-for-hire.” If you are driving for UberX or a similar service, you should check your insurance policy to confirm whether your policy covers this “commercial driving.” If it does not, you will want to consider purchasing supplemental commercial auto insurance.

Uber does provide some auto insurance coverage

Uber requires all of their drivers to have car insurance, and provides supplemental insurance coverage, but only while the app is on. Here’s how it works: When the Uber app is off, a driver is covered by their own personal car insurance. When the Uber app is turned on, a low level of liability insurance becomes active. When a trip is accepted, a higher level of coverage kicks in and remains active until the passenger exits the vehicle. In some states, Uber will only cover the passenger and not the driver.

Uber  Drivers May Also Need A Commercial Driver’s License

If you drive for UberX or a similar service, whenever you pick up a passenger you are driving professionally. Even though you are an independent contractor, some states will consider you to be a commercial driver. While each state’s laws are different, UberX and Lyft drivers should be aware that your state may require you to have a commercial driver’s license. Check with your state’s DMV for their requirements.

If your state requires you to have a commercial driver’s license when driving for Uber, you could be subject to prosecution if you get into an accident and don’t have a commercial license, even if you have a commercial auto insurance policy. Things may soon get less complicated though. Several insurance companies have recently created unique auto policies that are tailored specifically to drivers of Uber, Lyft, etc. These insurance plans are currently only available in select states, but provide an alternative to a traditional commercial auto insurance policy.

In the end, if you’re looking to start driving for Uber, your best bet is to be upfront with your insurance company about the fact that you’ll be “driving-for-hire”, find out if you need commercial insurance, and find out if you need a commercial driver’s license.

In the meantime, give us a call at (800) 490-8850 to find the auto insurance policy that best fits your driving needs.