How Car Insurance Works For Uber Drivers

Whether you’re considering driving professionally or not, I’m sure you’re curious. Do you need regular auto insurance if you drive for a rideshare service like Uber or Lyft? In short, yes. Here’s why:

Uber Coverage

Uber only covers you while you’re working, which means you have to be online and using the app to accept a ride, driving to pick up a ride, driving with a ride, etc. If you’re working but there is not a rider in your car, Uber’s insurance policy covers your liability if you are at fault in an accident. Uber’s coverage includes up to $100,000 in total liability and $25,000 in property damage per accident. If another driver is at fault, you can make a claim against their insurance and you may be covered with your own private auto policy.

If the rider is not in the car but you are en-route to pick them up, you’ll have up to $1 million in liability, injury, and collision damage coverage. In the event of a collision, you will be subject to a $1,000 deductible. If the rider is in your car, the same coverage applies, plus the rider is covered.

Limo, taxi, and bus services have similar coverage for their drivers and riders. Typically, the company will have one policy that covers all employees or contracted drivers.

Personal Use

When you drive your Uber vehicle for personal use, Uber’s insurance will not cover you. Lyft’s policy is almost exactly the same. That’s why even if you drive with Uber, whether you use the same car for personal use or not, that car will need to be insured. To discuss your plan options and come to a solution that’s right for you, speak to one of our licensed agents at 615-964-5250.


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