Driving for Uber or another ride-sharing is an awesome way to earn extra money, but it also comes with some risks. On top of that, most standard auto insurance won’t fully cover you while on the job.
That’s why it’s crucial to understand the types of coverage you need, the average cost, and how to find the best policy to ensure that you and your passengers are protected.
Luckily, we’ve developed a simple guide exploring all of these key points. Let’s dive in!
Already know what you need? That’s great! Get a personalized commercial auto insurance quote from EZ.Insure today, and stay protected from day one.
Why Uber Drivers Need More Than Just Personal Auto Insurance
When you drive for Uber, basic personal auto insurance is not usually sufficient. Here’s why:
The Difference Between Personal Auto and Commercial Insurance
Personal auto insurance is intended for personal, not commercial, usage. When you drive for Uber, you are using your vehicle for commercial purposes, which alters your risk profile in the eyes of insurance companies. This means that many personal motor insurance policies will not cover incidents while driving for Uber.
Gaps in Uber’s Insurance Coverage
Uber offers some insurance coverage to drivers, but it is limited. Uber’s coverage only applies during some parts of your drive.
Let’s take a look at some specific driving situations and which insurance coverage would apply during each:
- Offline or Personal Use: If you are using your vehicle for personal purposes, and not online in the Uber app, you’ll have to rely on your personal vehicle insurance policy.
- Waiting to Receive a Ride Request: Uber offers limited liability coverage during these times.
- En Route to Pick Someone Up & During a Ride: Uber provides liability, collision and comprehensive coverage, but only if you have these coverages on your personal policy. Their coverages also usually include a deductible.
In short, while your own coverage will help in some ways, having a comprehensive commercial auto plan helps by filing the gaps in coverage, so you can avoid costly out-of-pocket expenses.
Types of Commercial Insurance You Need as an Uber Driver
As an Uber driver, you need several kinds of commercial insurance to ensure complete coverage. Here’s an overview of the coverage types you’ll want to invest in:
Rideshare Insurance: This is a hybrid coverage intended for Uber and other ridesharing drivers. It fills the gap between your personal auto insurance and Uber’s coverage, ensuring you’re protected during all driving phases
Liability coverage: This coverage type protects you if you are at fault in an accident that injures others or damages another person’s property. This coverage is crucial in order to avoid costly out-of-pocket expenses for legal or medical bills.
Collision Coverage: This policy type provides coverage for the cost of repairing or replacing your car in the event of an accident, regardless of responsibility. Since Uber’s collision coverage is only available if you have it on your personal policy, adding collision insurance to your business policy assures you’re covered in the event of an accident while driving for Uber.
Comprehensive Coverage: This type of insurance protects you from non-collision incidents such as theft, vandalism, and natural disasters. Given the time that Uber drivers spend on the road, this coverage is critical.
Underinsured/Uninsured Motorist Coverage: If you are hit by a driver who does not have appropriate insurance, underinsured/uninsured motorist policy will protect you.
Risks of Driving for Uber Without Commercial Insurance
Driving for Uber without sufficient commercial insurance might result in major financial and legal consequences. Here’s what you’re risking:
- Risk of Claim Denial: If you are involved in an accident while waiting for a ride request, your personal motor insurance may deny your claim due to commercial use. Without commercial insurance, you may be solely responsible for repair costs and liabilities expenses.
- Out-of-Pocket Expenses: Paying for medical bills, car repairs, or legal expenses out of pocket can be extremely costly. Commercial insurance protects you from such risks by ensuring you are covered in all circumstances.
How to find Commercial Auto Insurance for Uber Drivers
Finding the right commercial insurance for Uber requires careful consideration. Here are key factors to keep in mind:
- Coverage Options: Look for policies that specifically cover rideshare driving and offer comprehensive, liability, and uninsured motorist protection.
- Cost and Affordability: Balancing affordability with the right coverage is crucial. Getting quotes from multiple providers can help you find competitive rates.
- Customer Support: Choose an insurer with excellent customer service to ensure you can easily manage claims or get assistance when needed.
Compare Rates with EZ.Insure
EZ.Insure is the best option for Uber drivers looking for commercial insurance. EZ.Insure simplifies the process for rideshare drivers by providing quick quotes, low rates, and coverage options tailored to their needs.
Get a personalized commercial insurance quote from EZ.Insure now and drive with confidence.
Average Cost of Commercial Insurance for Uber Drivers
The cost of commercial insurance for Uber varies based on several factors:
- Location: Urban regions typically have higher premiums due to increased accident risk.
- Driving History: A clean record will help lower your insurance, however accidents or violations might raise it.
- Vehicle Type: Larger vehicles or those with higher repair expenses may have higher premiums.
While premium costs vary quite a bit depending on the above factors, and the carrier you’re working with, Uber drivers typically pay between $100 and $300 per month for commercial auto coverage.
FAQs
Do I need commercial insurance coverage even if I only drive part-time for uber?
Yes, even part-time Uber drivers require commercial insurance. Part-time driving is still considered commercial use and is therefore not usually covered by personal vehicle insurance.
What is the difference between rideshare and commercial insurance?
Rideshare insurance is a type of commercial auto insurance intended exclusively for drivers employed by companies such as Uber. It fills in gaps that traditional business or personal insurance may not cover. Commercial insurance is an overarching term that refers to a variety of different policy types, all aimed at protecting businesses.
Can I drive without company insurance while not logged in to Uber?
Yes, when you are not actively working for Uber, your personal motor insurance usually covers you. However, getting rideshare or commercial insurance guarantees that you are fully covered while on the job.
Is this blog’s information applicable when driving for other ridesharing apps, such as Lyft?
Yes, the information in this guide is generally applicable to drivers for other ridesharing firms, including Lyft. Whether you drive for Uber, Lyft, or another service, the need for commercial insurance is similar. Both Uber and Lyft offer limited insurance coverage, but it may not entirely protect you in all instances.
Get the Peace of Mind You Deserve as an Uber Driver
Commercial insurance for Uber drivers is more than just an option; it’s necessary in order to protect yourself, your passengers, and your rideshare business.
Commercial insurance provides the peace of mind that every driver deserves by filling in the gaps between personal and Uber-provided insurance.
Don’t leave your safety to chance. Instead get insured today!
Ready to take the next steps? To ensure that you’re covered every mile of the way, get a quote from EZ.Insure! Simply enter your ZIP code into our data form, or call us directly at (855)-694-0047.
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