Research shows that there have been about 10 million Uber trips completed globally. As for Uber drivers, California is the winner when it comes to employed drivers.
If you are interested in becoming an Uber driver, you need to understand the details. One of these details includes Uber liability insurance.
To make sure you are protected in the case of an Uber accident, you need to understand this coverage. Uber insurance coverage is something that may be very important in the future.
Keep reading to find out what Uber liability insurance covers.
How Does Uber Liability Insurance Work?
When it comes to rideshare insurance, we need to discuss what it is. Rideshare companies, including Uber, have insurance for drivers.
Uber’s insurance provides coverage during certain points of your trip. This policy only covers you when the app is open.
Uber liability insurance works in steps. These steps are often called periods that indicate what step of the process of Ubering you are in.
It is important to understand that Uber insurance isn’t always covering you. When the app is closed, your personal auto policy is your only coverage.
Uber Liability Insurance Coverage
Now that you understand what Uber’s liability coverage is, what does it do? If you were to get in a rideshare accident, you need to understand these important details.
Anytime you are driving, there is always a risk of an accident occurring. In some instances, this could be something that was completely out of your hands.
If you are Ubering at the time, things can get a little more complicated. This is why you may need to consider hiring a lawyer to represent your Uber accident case.
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Period One
Uber liability insurance is broken down into different periods of your trip. Period one is when the Uber app is on, and you are waiting to receive a ride request.
The liability coverage offers third-party coverage with $50,000 in bodily injury. This applies to each person and goes up to $100,000 for bodily injury per accident.
This coverage also offers $25,000 in property damage for the accident. Keep in mind that period one does not include collision and comprehensive coverage.
Period Two and Three
The next two periods we need to talk about are two and three. Period two is when you have excepted a ride request.
You will be driving on your way to pick up that passenger. Period three is when you have picked up the passenger and are transporting them to their destination.
This also includes when you are dropping them off and they exit the car. The coverage you receive is $1 million in third-party liability.
You and the passengers also get uninsured and underinsured motorist bodily injury coverage. Collision and comprehensive coverage are also offered by Uber.
This covers up to your vehicle‘s cash value. Keep in mind that this is only available with a $2500 deductible.
You will have to pay that money out of pocket before the coverage will cover your claim. Even though Uber‘s coverage is quite good, there are some concerns.
For instance, experts recommend $100,000 of bodily injury coverage for each person. The coverage Uber provides is significantly lower than that.
Do You Need Persona Insurance Too?
Something else you need to consider is personal insurance. Even the Uber provides liability coverage, this is not going to be enough in every instance.
Experts recommend that Uber drivers have personal insurance coverage that is a commercial policy. This will help to protect you and your vehicle in the case of an accident.
Liability
When it comes to liability, this is mandatory in every state. How much liability you need will depend on the state, so you need to do your research.
Having personal liability coverage will ensure you don’t have to pay out-of-pocket for an accident. This is very important since Uber’s liability may not be enough.
Liability helps to cover bodily injury and property damage.
Collision/Comprehensive
Another thing you should have on your insurance is collision and comprehensive coverage. This is not always mandatory, but it is a good idea for Uber drivers.
This will help to pay for repairs to your vehicle or replace it. It also covers damage to your vehicle that is not accident related.
This could include anything from hail damage to vandalism. As an Uber driver, your vehicle is very important when it comes to your ability to make money.
Having enough coverage to pay for damage and to replace it is vital.
Uninsured/Underinsured Motorist
The last thing your personal Insurance needs to cover is uninsured and underinsured motorists. This may not be required in every state, so you need to do your research.
This coverage will cover you and the passengers if the other vehicle doesn’t have insurance. It will also help to cover you if you have a loss of income from the accident.
Uninsured and underinsured motorist coverage can also cover pain and emotional suffering.
Uber Liability Insurance: Everything to Know
If you are an Uber driver, you may have considered Uber liability insurance. This is insurance that Uber provides to all of its drivers in the case of an accident.
This covers things like personal injury, vehicle damage, and other details. These are important things to understand if you were to ever get in an accident while working.
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