Seems like everyone is taking a second job these day to help pay the bills or even just for a little extra spending money. Some take on extra shifts at work, others tend bar or wait tables. But what has become extremely popular these past few years is driving for Uber. When you already have a car seems like a win a win situation. Sign up, pick up passengers, and make money! But how covered are you? Does your auto policy cover you for driving people? Are the people that get into your car covered if you where to get into a car accident?
What is Uber?
First you might be asking yourself what is Uber? And if you don’t know thats okay, we are going to explain it! Uber is a ride-hailing service (sometimes referred to as “ride-sharing”) that competes with taxis and black car services. Passengers hail an Uber from the smartphone app and arrange for a car to pick them up, often for less than the cost of a traditional taxi.
While Uber has a number of commercially-licensed black car services, it also has a product called UberX. UberX allows local drivers to respond to notifications on the Uber app by driving customers in their own (non-luxury) cars. And this is where the auto policy you have comes into play.
So from a business perspective Uber is like any taxi service out there except they don’t own a single car. The cars are owned by the driver, and so then the driver is responsible for there own car insurance policy. In some states the only requirements for UberX drivers are car insurance, appropriate age, health, completion of a driving test, and passing a background check.
What is covered?
Want to know what is covered? Uber.com states clearly on the website the following for all drivers:
While waiting for a request
While you’re online with Uber and before you accept a request, you are covered for your liability to a third party if you are in an accident when you’re at fault. A third party is someone other than yourself. Coverage includes your liability to pay another person’s medical bills or to pay for property damage (like a damaged fence).
Coverage Limits vary by state, but are at least:
- $50,000 per person/$100,000 per accident for bodily injury
- $25,000 per accident for property damage
If you are not at fault, you may make a claim against their insurance. Your personal insurance policy may also cover you in this situation. Please check your personal coverage for more information.
On your way to pick up a rider and during a trip
While you drive to pick up a rider after accepting a request and during an Uber trip, you are covered for three things:
1. Third party liability coverage
This insurance covers your liability for damages to any third party such as another driver, pedestrian, or property in case of an accident when you’re at fault. Coverage limits vary by state, but are at least $1,000,000 per accident.
2. Uninsured or underinsured motorist bodily injury coverage
This insurance covers you and anyone else in your vehicle in case of an accident where another driver is at fault, but does not have sufficient insurance. This also covers hit and run accidents where the at-fault driver cannot be identified. Coverage limits vary by state, but are at least $1,000,000 per accident.
3. Contingent collision and comprehensive coverage
This insurance covers your vehicle in case of an accident whether it was your fault or not, as long as you maintain auto insurance that includes collision coverage for that vehicle while not on an Uber trip. Coverage limit is up to the actual cash value of your vehicle. There is a $1,000 deductible.
When driving your car for personal use
Since you are not driving on the Uber platform during this period, you are not covered by the insurance Uber maintains for driver-partners. Any accidents that occur in your car while not driving on the Uber platform are covered by the personal auto insurance coverage that you purchase on your own.
The best thing at the end of the day is to call us and speak to any of out account managers to make sure you have the right amount coverage. You may feel that you want to add more coverage. And we are always here to help you feel safe when you get behind the wheel.