Services like Uber have been popular for several years, you may consider signing up as a driver to earn some extra money. You may also wonder about the implications when it comes to your car insurance and who would pay in the event of an accident. Read on to learn what steps you may have to take to avoid any insurance-related surprises while driving for Uber.<\/p>\n\n\n
Uber is a ridesharing service (sometimes referred to as \u201cride hailing\u201d) that competes with taxis and black car companies. Passengers hail an Uber from a smartphone app and arrange for a car to pick them up, often for less than the cost of a traditional taxi.<\/p>\n\n\n\n
While Uber has a number of commercially licensed black car services, it also has a product called UberX, which allows local drivers to respond to notifications on the Uber app by driving customers in their own (non-luxury) cars.<\/p>\n\n\n\n
Unlike traditional taxi medallion companies, almost anyone can drive for UberX and competitors like Lyft and Via. In some states, the only requirements for UberX drivers are car insurance, appropriate age, health, completion of a driving test and passing a background check.1<\/sup><\/p>\n\n\n Your personal auto insurance policy may not provide coverage for you while driving for a service like UberX. This is because personal car insurance policies have a list of exclusions, and they often include \u201cdriving-for-hire.\u201d If you are driving for UberX or a similar service, you should check with your insurance company to confirm whether your policy covers this \u201ccommercial driving.\u201d If it does not, you will want to consider purchasing supplemental commercial auto insurance.2<\/sup><\/p>\n\n\n Uber requires all their drivers to have car insurance, and provides supplemental insurance coverage, but only while the app is on. Here\u2019s how it works: When the Uber app is off, a driver is covered by their own personal car insurance. When the Uber app is turned on, a low level of liability insurance becomes active. When a trip is accepted, a higher level of coverage kicks in and remains active until the passenger exits the vehicle. Previously, Uber driver insurance had only offered coverage when a passenger was in the car, but the company has since updated their policy, but make sure to continue to check Uber\u2019s policies as they can be updated from time to time.<\/p>\n\n\n\n Lyft and some of the other ridesharing services point to the $1 million per incident excess liability coverage that certain states require them to carry. The policies are designed to deal with liability claims, which a driver\u2019s insurance doesn\u2019t cover. But these policies won\u2019t cover a driver\u2019s car \u2013 you must rely on your own personal auto insurance policy.3<\/sup><\/strong><\/p>\n\n\n\t\t\t\n\t\t\tCoverage While Driving for UberX May Not be Covered by your Personal Auto Insurance Policy<\/h2>\n\n\n
Uber Provides (Some) Auto Insurance Coverage\u2026 When the App is On<\/h2>\n\n\n