Complete guide to car insurance for uber drivers and other rideshare services.
Since their inception, Uber, Lyft and other rideshare services have faced hurdles getting car insurance. Standard consumer car insurance policies would specifically exclude cover for vehicles being used to carry passengers for profit, leaving a severe dearth of cover.
To fill this, Uber takes out insurance on your behalf. However, these policies will only apply after your own cover and only include liability insurance.
Fortunately, insurers are now expanding their cover to offer options for Uber and other taxi-type rideshare drivers. You can tailor a policy to cover you while carrying passengers as well as driving for yourself.
What kind of car insurance do I need for ridesharing?
In the United States, you need at least liability coverage. While driving for Uber, you are covered by their commercial automobile insurance policy which covers up to $1 million of liability per incident.
What kind of insurance does Uber provide?
Uber has its own insurance for drivers. This insurance comes with $1 million of injury liability cover. In addition, Uber also offers $1 million in uninsured/underinsured motorist bodily coverage to all occupants in the rideshare vehicle in the event another motorist caused the accident without adequate insurance.
- This will only apply if you are “on the clock”, with a passenger in your rideshare vehicle..
- Uber and Lyft covers your car in the event of a collision of comprehensive claim but only if you have collision and comprehensive policies in your own personal policy.
- Uber covers up to the cash value of your car with a $1,000 deductible while Lyft caps the maximum at $50,000 with a $2,500 deductible.
Finding the right cover
The only way to find car insurance that covers damage to your car sustained while driving for Uber, including damage caused by passengers, is to look for comprehensive car insurance with a rideshare extension. This extension essentially undoes the “no cover for business driving” exclusion that applies to standard comprehensive car insurance.
Not all insurers offer this option, and if they do, not all insurers clearly highlight the option. You may want to simply pick policies as you normally would, then ask each of the insurers you’re considering whether they offer rideshare insurance and get quotes to compare.
If you’ve taken out financing to start driving sooner, then a condition of your financing may require you to get comprehensive car insurance. It might be possible to get cover without a rideshare extension, but it would leave a serious hole in your cover.
Steps to get insured as an Uber driver
- Make sure you have minimum liability coverage. This is required for all driving in most of the States.
- Consider having personal comprehensive car insurance or collision coverage. You must have these in order for Uber for cover your car in the event of an accident.
- You will not be covered for any damage to your own vehicle that occurs while driving for Uber unless you have comprehensive and collision car insurance. This is because “rideshare extension” cover is only available with comprehensive policies.
- Compare policies by benefits and costs to find one that’s right for you. If you’ve opted for comprehensive cover, contact the insurers in order of preference and ask whether they offer rideshare cover, and get quotes for it.
- Sign up, and hit the road.
Insurers that offer rideshare extensions
A growing number of insurers are offering cover for Uber drivers. Currently, you can find the rideshare extension with providers including RACQ, NRMA and Allianz. To help you compare the options, you may want to get quotes from each and then use the Uber earnings calculator to see how well different policies suit your budget. This calculator can help you compare earnings next to the costs of insurance premiums, car maintenance, Uber financing programs and more.