Uber Insurance: How It Works, What It Costs, and Where to Buy

October 16, 2022

0 160 4 minutes read

How Long Does it Take to Receive an Insurance Claims? The Process

If you’re drawn to the uber signup bonuses, the money you can earn working your own hours, or the fun of meeting new people, then you’ve probably thought about becoming an uber driver.

Maybe you are interested

But before you did, you probably thought about the effect driving could have on your car insurance and what would happen if you crashed your car during a trip.

Reading: How much uber insurance cost

That’s where uber insurance comes in.

In this post, we break down the basics of uber insurance, including…

uber insurance basics
how much does it cost
tips for getting uber insurance

let’s get started.

uber insurance basics

many uber drivers sign up to drive without doing the right amount of research and often overlook an essential element of driving for a rideshare company: insurance.

A driver’s personal auto insurance policy may not fully cover them during trips if they drive for uber.

This is because insurance companies consider uber driving a “business” activity and can claim an exclusion that is written into your policy.

We wrote quite extensively about why this is in our article on rideshare insurance basics, which goes into much more detail on everything you need to know about uber insurance.

so check it out if you want to know more. But for now, what you need to know is that you need an extra level of insurance when you drive for Uber.

uber insurance requirements

Uber drivers, by default, have a certain level of insurance provided to them once they are approved to drive.

This typically covers general driving when picking up and dropping off passengers, but falls short of certain “periods” when driving.

According to their website, uber’s insurance requirements ensure that drivers maintain the correct amount of insurance for their state’s “minimum financial responsibility.”

This protects both the rider and the driver.

There aren’t many details about uber’s insurance requirements, as adding additional insurance on top of uber’s default policy is up to the driver.

This is an additional cost and there are many different policies available.

In general, though, does Uber have insurance coverage for drivers?

yes, they provide all drivers with a basic insurance policy.

uber insurance offers:

$1 million liability coverage per incident (which covers things like vehicle and property damage)
$1 million uninsured and underinsured motorist bodily injury coverage per incident
contingent comprehensive and collision coverage
no-fault coverage (for example, personal injury protection)
$50,000/$100,000/$25,000 coverage between trips

For more detailed information on each of these, check out our guide to uber insurance.

uber driver insurance cost

The cost of uber driver insurance is less than most drivers would think, but it’s worth every penny.

An additional uber insurance policy from a private insurance company will often cost drivers between $6 and $20 per month.

The cost of this type of policy will depend on the coverage amounts, the policy provider, the city in which you drive, and a variety of other factors.

We recommend that drivers shop around to find the best quote for their specific needs.

Harry Campbell from one of our favorite ride sharing blogs put together a great video about companies that offer insurance for uber drivers.

take a look:

uber commercial insurance

Like differential insurance, a commercial insurance policy adds a level of protection for rideshare drivers when they log into the driver app.

This type of insurance is common among higher-end uber types of vehicles, such as uberlux and ubersuv, and often costs much more than a standard rideshare insurance policy.

A commercial auto insurance policy is generally tailored to taxis and limousines that are driven for business purposes.

However, for most uber drivers, this is not a practical route because it can cost thousands of dollars a year, while a typical rideshare insurance policy costs only hundreds of dollars.

If you want to get an additional policy, but find that rideshare insurance isn’t available in your state, you may need to look at a commercial policy for uber.

tips for getting an uber insurance policy

When looking to get a specialty policy, it’s easy to overspend or buy a policy that offers less protection than is ideal.

Here are some tips to keep in mind when shopping.

Be sure to include insurance costs in your budget: When calculating how much you earn from driving, factor in overhead costs like gas and insurance. if you start spending more than you earn, consider it a red flag and adjust accordingly.
read between the lines: read the fine print on your uber insurance policy it’s key. It’s important to fully understand how and what is covered before you hit the road.
Connect with other drivers: Every city is different, so one of the best resources available is other drivers in your area. Ask to see how they’re covered to give you a better understanding of how your policy stacks up.
Compare: Searching for options available to Uber drivers in your area is a must. don’t buy the first policy you find. do your research and look at other options at different prices until you find the right policy for you.

Understanding the realities of super insurance coverage

as you can see now, neither your personal insurance policy nor the official uber policy will protect you in certain situations while driving for uber.

To bridge this gap, you can look into other insurance policies, such as gap or commercial insurance.