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Auto Insurance as an Uber Driver—What You Need to Know

Not only is having an up-to-date auto policy a requirement to drive for Uber, it’s also the law. It is illegal to operate any moving vehicle without insurance.

But, not all insurance policies are equal. There are policies for cars, different policies for trailers, and different kinds of policies for every type of vehicle.

Shopping for car insurance is difficult enough, but figuring out what kind of insurance you need if you’re driving for Uber can seem impossible.

It doesn’t have to be!

Here are a few things you need to know about auto insurance so you can pick up your next rider with confidence.

You May Want to Consider Gap Insurance

Gap insurance is a relatively good idea even if you’re not an Uber driver. It provides you with the difference between the cash value of your vehicle and the balance still owed on its financing. That way, if you get into an accident, you don’t have to worry about paying thousands of dollars on the vehicle because you’re technically still responsible for paying for it.

Many insurance providers offer gap policies, while some like Geico don’t, but they all offer some kind of insurance that’s appropriate if you’re going to be making money driving people around town.

Make Sure Your Policy Covers You in the Event of an Accident

A gap policy is a good idea, but it may not matter if the insurance policy you have won’t cover you in the event of an accident.

Every car insurance policy has a hefty list of exclusions. If your policy happens to exclude “driving-for-hire” services, you won’t be covered if you get into an accident.

It’s important to look into the details of your policy. If it doesn’t cover this kind of driving, it’s time to get a new policy. You don’t want to find out your vehicle isn’t covered after you get into an accident.

While looking for the new policy, explore a few options for a cheap car insurance quote that can provide compensation for accidents, fire, theft, as well as third-party cover. Additionally, you can also ask them whether they provide add-ons like personal injury cover, passenger cover, etc.

Uber Offers Liability Coverage

There’s no question that you need to have your own vehicle insurance, and you have to make sure it’s the right policy for you, but it is important to know that Uber offers liability coverage to its drivers.

Its policy includes at least:

  • $50,000 in injury liability per person
  • $100,000 in total liability per accident
  • $25,000 in property damage liability per accident

Amounts can be up to $1 million, depending on whether you’re on your way to pick up your rider or you’re in transit to their location. Just remember that this coverage is only active when you’re driving for Uber, which means you have to start the app in order for it to become active. It does not replace your current auto policy.

Auto insurance can be complicated, so it’s important to talk to your insurance provider if you have any questions. You can also reach out to Uber directly to learn more about their coverage. Knowing the ins and outs of your insurance policy is important, because being on the road more means you’re more likely to get into an accident.