Uber is the fastest-growing ridesharing company. All passengers have to do is open the Uber app on their smartphone and book a ride. Within minutes, a vehicle under Uber will come to pick them up from their pickup location and drive them to their destination.
Ridesharing companies are now in competition with taxis and private transportation industries. Uber allows users to choose service options such as UberPOOL or UberLUX, which will fit their ride and budget needs.
The difference between Uber drivers and private cars is that drivers own and operate their own vehicles. The drivers are not employees of Uber but are considered independent contractors. They manage their own business under Uber.
If a driver has an eligible vehicle, passed the background check and meet the driver requirements, they can be an independent contractor under Uber.
Uber Insurance Basics
Many Uber drivers sign up to drive to make additional income. Most of the time, they overlook a vital element of driving for a rideshare company, insurance.
A driver’s personal auto insurance policy won’t fully cover you during your rides. Insurance companies consider driving for Uber as a “commercial” activity and can be an exclusion under your policy. This is why it is crucial for Uber drivers to update their insurance companies and tell them that they’re driving for Uber.
Uber Insurance Requirements
Drivers have a certain level of insurance that is provided to them once Uber accepted and approved that they can drive. This covers general driving – picking and dropping off of passengers, but falls short in some “periods.”
Uber insurance requirements ensure that drivers maintain the correct amount of insurance that protects both the rider and the driver.
Here is what Uber insurance provides:
- $1 million of liability coverage per incident (which covers personal injuries and property damage)
- $1 million of uninsured or underinsured motorist bodily injury coverage per incident
- Continent comprehensive and collision coverage
- No-fault coverage
- $50,000/$100,000/$25,000 of coverage between trips
Uber driver insurance cost is less than what other drivers think. An additional Uber insurance costs between $6 and $20 monthly. The cost of this type of policy depends on the insurance coverage, the provider of the policy, the city you’re driving in, and many other factors.
If you encountered a vehicular accident while you’re on an Uber vehicle, call 911 as soon as possible. Have yourself checked and consult a personal injury lawyer in case of an accident for the best legal advice.