Uber Insurance Coverage Periods Explained
There are millions of people hiring Ubers and Lyfts instead of taxis or limousines. Fares are more inexpensive, and these kinds of rides are a lot more convenient than more traditional forms of transportation.
Because there are more Uber and Lyfts on the road, have you ever wondered what could happen if you become injured in an Uber or Lyft accident? You might be walking across the street or waiting in traffic – what if a rideshare hits you or your vehicle? What happens if you have to initiate a lawsuit?
Here are some explanations of Uber's insurance coverage periods:
Uber and Lyft drivers should have a commercial car insurance policy or a rideshare-friendly policy for their personal car insurance. These are insurances that cover drivers while they are working.
It should be known that Uber's insurance does not cover drivers when the app is closed on their phones. When the Uber app is closed, or if there is any question of coverage, these are times when a driver will need to have their own personal auto policy.
Uber's insurance coverage applies under certain circumstances when the app is open; otherwise, the driver's rideshare-friendly policy should apply.
According to insurers, there are three different insurance coverage periods:
Period 1: This period is when the driver is waiting to be matched with a rider, and the Uber app is open. This period is ambiguous as it related to liability.
Period 2: This is the time when the driver is matched up with a rider, and they are driving to that area to pick them up.
Period 3: The rider is safely in the car. This time period ends when the rider has exited the vehicle.
The reality is that the more drivers are out on the road offering rideshares, the more chances there are for an accident to occur. It is essential to know which insurance company will be covering the liability.
Uber Insurance Coverage
While Uber offers insurance liability coverage to its drivers, this coverage will vary depending upon if the driver has a rider in the vehicle. It can be questionable as to whether Uber covers collision and comprehensive. The driver's injuries are not covered unless the accident is the fault of another driver. Uber and Lyft do require that their drivers carry their own insurance.
Period 1 insurance coverage under Uber has low liability limits without collision or comprehensive coverage. They cover $50,000 in bodily injury liability coverage per person, $100,000 in bodily injury liability per accident, and $30,000 in property damage liability per accident. There is also $200,000 in additional liability coverage per accident.
Uber provides liability coverage equivalent to contingent or required coverage in most states. There are different requirements for Maine and California. The driver will need to file a claim with their own insurance first, and if the claim is denied, then Uber's insurance will take over.
Uber does not provide any collision or comprehensive insurance, so drivers will need this coverage on their personal policy to repair their vehicle if it has been in an accident. It's wise to have this insurance so that drivers can get their car repaired regardless of who is at fault for the accident.
Uber also does not provide any kind of uninsured motorist coverage. Uninsured motorist coverage should be selected on the driver's personal car insurance policy just in case the driver is injured by another driver on the road who does not have insurance.
For periods 2 and 3, liability is covered by Uber under their $1 million policy. They also offer contingent collision and comprehensive insurance. If the driver's insurance company denies the accident claim, Uber's insurance should apply, and the policy carries a $1,000 deductible, which needs to be met before the payment will be made. They also include the uninsured motorist coverage under the $1 million policy.
Rideshare drivers should consider having liability, collision and comprehensive, uninsured motorist, gap coverage, and medical payments with their personal insurance policies to protect them fully in situations where Uber's insurance may not apply.
Liability insurance is required throughout every state and is in place to cover injuries to others and property damage. Collision and comprehensive pay to repair or replace the driver's vehicle if it has been damaged or totaled in an accident. Uninsured motorist coverage will help if the other driver is at fault for the accident, and they are uninsured or underinsured.
Gap coverage will cover the difference from the amount you owe on your vehicle if it is financed and the amount the insurance company pays if the car is totaled. Medical payments will cover medical expenses due to a car accident. This coverage is good to have if the driver does not have health insurance coverage.
Rideshare drivers should make it a priority to have the best personal car insurance policies to protect their riders, themselves, and the investment they have made in their vehicles. This will allow them to continue working safely and confidently.