Car Insurance for Uber Drivers

car insurance for uberWith technology leading the way, folks can now bypass the traditional taxi and opt for a cheaper ride using Uber, a virtual taxi service where folk’s book rides via a mobile app and get driven around by folks using their personal vehicles.

Uber (formally known as UberCab) was founded in March 2009 and has taken the mobile sphere by storm with its quick, convenient way of booking rides.  In response, competitors have also made their way into the market as well, such as Lyft (2012) and Curb (2014).

Driving for Uber Could Invalidate Your Personal Auto Insurance Policy

While driving for Uber can provide you with some extra cash, the lines between personal and commercial use get blurred when you’re getting paid money to use your personal automobile to drive people around.

If “driving-for-hire” is listed under exclusions, you may want to purchase a supplemental commercial car insurance policy. This should cover you in the event you get into any accidents while on the job. The investment may not be feasible if you’re just a part-time driver, but full-time drivers should definitely consider purchasing car insurance for Uber drivers.

Coverages Provided by Uber

While Uber requires every driver to have personal auto insurance, Uber also provides liability insurance to drivers as well

When the app is on

  • When the app is on and no passengers are in the vehicle, you are covered with liability insurance at $50,000 per person / $100,000 per accident with property damage limits at $25,000.

Request Accepted

  • Once you are on the way to pick up a rider, the limits increase to at least $1 million in total liability coverage and bodily injury (by uninsured or under-insured motorist). Uber also provides collision and comprehensive coverage up to the actual cash value of your vehicle with a $1000 deductible. This coverage is contingent upon already having these coverages under a personal auto insurance policy.

 On The Trip

  • The same coverages explained above not only cover you, but also any riders in your vehicle.

Looking to switch carriers or update your policy? Give H&K insurance a call at 800-890-5606 or request a free online quote.

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