Does Uber Insure Its Drivers?

Apr 7, 2023 | Personal Injury

Yes, Uber does offer insurance to its drivers, but only while they’re on the job.

A driver is deemed to be working if they’re in “driver mode”, meaning they have their Uber app open and are prepared to take ride requests from clients.

So, if you’re an Uber driver and are not logged into the ridesharing app and are driving around running personal errands, you’ll not be eligible for any form of compensation from Uber if you get involved in an accident. Your personal auto policy is the only form of insurance you have in this case.

The insurance Uber provides includes liability coverage, uninsured/underinsured motorist coverage and contingent collision, and comprehensive coverage.

Please note that the time your Uber accident happens determines the type of insurance offered and the amount paid. A driver’s time is broken down into three periods by the ridesharing app.

  • Period 1: The Driver Is Online and Waiting for a Ride Request

If an accident occurs at this point, Uber will give you (the driver) third-party liability insurance, which only covers injuries and property damage caused to other persons as a result of an accident you caused. It doesn’t cover any injuries you sustain due to the collision or damage to your car.

The coverage may include:

  • $50,000 in bodily injury per person. This implies that the most a third party hurt in an Uber accident can receive is $50,000.
  • $100,000 in bodily injury per accident. No matter how many people were injured in the accident or how severe their injuries are, Uber will only pay up to this amount for an accident if a driver was waiting for a ride request.
  • $25,000 in property damage per accident. This aids in covering costs for damage your car caused to another person’s property, including their car, home, mailbox, etc.

One important thing to keep in mind is that Uber requires its drivers to file a claim with their auto insurance provider first. If their insurer rejects the claim, or their policy is unable to pay the full cost of the accident, Uber insurance kicks in.

As an Uber driver, any claim you make with your insurer following an Uber accident is likely to be denied if all you have is personal auto insurance. This is due to the fact that this type of car insurance only covers you when you’re driving for personal, not business, purposes.

Additionally, if your insurance provider learns that you drive for Uber after an accident because you failed to disclose this information earlier, you’ll likely be in breach of the conditions of your policy, and they may decide to cancel or not renew it. 

This is because you pose a higher insurance risk than the average driver since you spend a lot of time on the road and are more likely to be involved in an accident. Also, you’re not keeping your commitment to the insurer that you’ll only use your car for personal travel, which was the basis for determining the insurance premium paid.

Adding a ridesharing endorsement to your personal auto policy is the best way of ensuring you’re adequately protected as an Uber driver and that your claim is not denied following an accident. Ridesharing insurance covers you against any accident-related claims made against you while you’re driving for a ridesharing company.

  • Period 2: The Driver Is on the Way to Pick Up a Passenger

Uber will provide the following coverage if you’re involved in an accident during this period after accepting a ride sharing request: 

  • $1,000,000 third-party liability coverage. Remember third-party insurance is only available to anybody injured in an accident caused by you. For example, if you hit a cyclist as you’re going to pick up a passenger, the $1M third-party coverage is what they can claim for damages to their bike and reimbursement for medical expenses incurred to treat their injuries. This coverage won’t pay you back for your losses and injuries.
  • $1,000,000 uninsured and underinsured motorist coverage. This compensates an Uber driver if they’re hit by someone who doesn’t have auto insurance or has insufficient coverage. A driver may also be eligible for this cover if they’re involved in a hit-and-run accident.
  • Comprehensive and collision coverage. Comprehensive insurance will pay for damages to your car brought on by events other than an accident, such as vandalism or fire, while collision insurance will replace or cover the whole cost of fixing your vehicle following an accident. As an Uber driver, you’re entitled to this insurance regardless of whether or not you’re the one who caused an accident.

However, you must have included collision and comprehensive coverage in your personal auto insurance to qualify for this cover. If you hadn’t taken out this type of insurance, Uber won’t pay you for it.

Uber insurance is also contingent at this time. It only pays after you’ve filed a claim with your personal auto insurance provider, who is considered to be your primary car insurer.

  • Period 3: The Passenger Is in the Car and You’re En Route to Their Destination

Here, Uber insurance is the same as in Period 2, including up to $1 million in third-party liability, uninsured/underinsured motorist bodily injury insurance, and contingent comprehensive and collision insurance up to the actual cash value of your car with a $2,500 deductible.

What Should You Do if You’re Involved in an Uber Car Accident?

If you’re an Uber driver or passenger involved in an accident, follow these recommendations if you can to improve your chances of receiving compensation from an auto insurer or Uber.

  • Make sure everyone involved in the accident is OK. If someone is injured, call 911 immediately.
  • Call the police and report the accident to Uber: You can use the Uber app to report the accident as soon as possible. When you do, someone from Uber’s team should reach out to confirm everyone’s safety and gather information about the accident.

When the police arrive at the accident scene, they’ll file an official police report. You should request a copy of this report because you can use it as evidence if you decide to pursue a personal injury claim.

  • Gather information about the other driver, including their name, contact details, and insurance provider. Also, take note of the make and model of their car and the license plate number.
  • Take pictures of the accident scene, including the damage to the vehicles, any injuries, and the surrounding area. These pictures can be used as evidence to support your claim.
  • Get witness statements. If there were any witnesses to the accident, get their contact information and ask them to provide a statement about what they saw. Witness statements can be useful in supporting your claim.
  • Seek medical attention immediately if you’re injured. Even if you do feel fine and have no visible injuries, it is a good idea to get checked out by a doctor to ensure that you do not have any internal injuries. 
  • Keep records of all the reports and expenses related to the accident, including medical reports and bills, and car repair costs.
  • Consult an Uber car accident attorney. After an Uber accident, you may not be sure what compensation you’re entitled to and how to make a claim. An experienced Uber car accident lawyer can examine the circumstances of your accident and explain to you in detail what damages you may be entitled to.

To maximize your compensation as you recuperate, the lawyer can also negotiate on your behalf with an insurance provider or Uber.

Contact Gallagher Krich, APC, for Help with an Uber Car Accident 

If you were injured in an Uber accident, please contact Gallagher Krich, APC, at (858) 926-5797 or fill out our online contact form now for a FREE consultation and case review.

Our legal team has 30+ years of combined legal experience handling personal injury cases and a proven track record of getting our clients the highest possible compensation for their injuries and damages.

When you get in touch with us, we’ll hear your side of the story, address your Uber insurance concerns, and assist you in weighing your legal alternatives. Contact us today to receive the assistance you require!