A Walkthrough of Uber Insurance

Things You Should Know -

This would require you to purchase a personal or commercial vehicle motor insurance policy which is ride-share friendly, to ensure that you are covered while you are driving an Uber vehicle on duty.

This would give you a cover when the app is open or in use while driving. And if the application is closed, you would need your personal car insurance policy to get a cover from any damage on road.

Uber rideshare policy applies during these three situations, according to auto insurers -

• Situation 1: It is also called as the grey area. It is applied when you have your Uber app open and you are just strolling around the city. And waiting for a rider to ping you on your GPS smartphone for pick up from their location.
• Situation 2: This is when you have a duty to pick up a rider and you are enroute to their location.
• Situation 3: When you have picked the rider and are enroute to the drop-off location. The moment the rider gets off; this period would end.

If there is an accident, you should be aware of the name of your insurance service provider, and you just need to present your personal car insurance papers with ride-share liability cover, to get the claim. During this time, Uber would deactivate your account, and it would reopen soon after the repair and claim is done.

How These 3 Situations Are Given Coverage under Uber Insurance -

The drivers are offered liability cover, but the level of coverage depends, if there is a rider in the car or not. The collision and comprehensive are little complicated. Have a quick glance of what all is covered under Uber insurance: 

• Insurance coverage under Situation 1: Collision and comprehensive doesn’t apply in this situation and the liability limit is also low.
• Liability: You get liability coverage of up to 50,000 dollars including cover for an accident, injury and damage to property. This is provisional coverage in most of the states, and you would need to claim it with your insurance company first, if they deny giving you cover then only Uber’s insurance will come into picture.
• Comprehensive and Collision: You will not get a cover for collision and comprehensive under situation 1. You will need to pay for your damages, if it’s your fault. Regardless of whether it’s your fault or not, you can take up your personal insurance policy, apart from deductibles you would need to pay a certain amount for your car to be repaired.
• Uninsured/underinsured Drivers: If damaged by someone who is uninsured, Uber would not give any cover. You will have to use your personal car insurance policy, in case you are injured by someone without insurance. For this you would need to purchase a commercial coverage policy, or Uber would need to take the required actions.

Insurance cover under Situation 2 and 3: This covers your liability, what remains complicated is comprehensive and collision.

• Liability: It will give your protection and cover in almost all the cases
• Collision and comprehensive: It provides conditional comprehensive and collision cover. If your insurance company denies you collision and comprehensive claim, despite it being on your policy, in that situation Uber’s insurance will be used. There are certain deductibles, which have to be covered by you.
• Uninsured/underinsured drivers: It should suffice as Uber has a $1 million policy for its customers.

Personal Insurance Coverage

Your personal auto insurance policy will come into action, if you happen to be driving off-duty and the Uber app is not open in your phone. Cab drivers, commercial vehicles and ride sharing are not given a cover under personal car insurance plans. Your insurance company can cancel your claim, if you were on duty for Uber when the accident took place. What can give you full cover is a commercial car insurance plan, though it is a little costly. Therefore, taking a ride-share cover in your personal insurance plan would give you Uber cover at a much lower price as compared to a commercial policy. To analyze more you can compare car insurance with auto insurance providing ride-share cover, to decide better. 

Recommended for drivers

If you are an Uber driver and are already looking for a ride-share cover, have these insurance covers on your list-

Liability: It is a mandatory clause in your auto insurance policy. If you have caused damage or injury to a third party, this will give you a cover from that. Though, damage caused to you or your car won’t be covered in it.

Collision and comprehensive:  Though they are not compulsory, but in case there is loan which you are paying on your car, your mortgagee would need them. If your vehicle is damaged by other vehicles or objects in case of an accident, the collision would cover the loss or damage. Comprehensive means you will get risk cover under all natural and man-made circumstances. Though there are deductibles, so ensure you have that much amount in your bank account.

Uninsured/underinsured driver:  This coverage is required in some states and in others you do not require it. But do not reject it; it covers risk and damages arising from other drivers’ fault, especially if the motorist is not insured. It will give cover to you and the passenger from expenses on damage control and medical treatment. An Underinsured coverage will give you a cover, in case the other driver who has hit you, is having low amount of sum insured.

Remember to take a gap coverage and medical payment coverage to meet all the medical expenses arising out of car accident. This amount will be adjusted from the health insurance policy of the driver, only if it is there.

In A Nutshell

Driving on roads is never safe, and if you are driving an Uber with passengers, it’s always wise to take a motor insurance policy with ride-share cover. If you are thinking of buying one, you can compare car insurance with ride-share motor insurance and decide on the benefits or cover you need. This will safeguard you from unforeseen damages on road.