Posted on March 4, 2016 and updated October 12, 2021 in Auto Insurance by Alexey Saltykov — No Comments ↓
Get a free Uber Insurance quote and get on the road in no time!
In the last few months there were many heated discussions and arguments about Uber’s ride-sharing services. Apart from the emotional side that Uber drivers put pressure on cab businesses, there was an issue with insurance that had not been properly resolved – what kind of insurance do Uber drivers need and what should it cover? We summarized the key questions about this topic and have included several examples to help you better understand Uber insurance.
Do I need insurance if I am offering ride-sharing services?
Yes, you need a special kind of insurance otherwise you will (very likely) not be covered if you have an accident. Though Uber claims to have a contingent $5M in auto and liability insurance, it is highly recommended that Uber drivers get the proper car insurance to be properly protected.
Can I use my owncar insurance when driving for Uber?
Your personal car insurance policy does not cover you when you drive for Uber since it is considered a drive-for-hire service and is normally excluded from personal car insurance policies.
Is expensive commercial insurance the only option?
Until recently that was the case. The only option available to Uber drivers was to get a commercial insurance policy or additional insurance coverage (also called an endorsem*nt) to the current policy called “Permission to Carry Passengers for Compensation.” That policy / endorsem*nt was quite expensive.
Luckily, there is a tailored Uber insurance policy on the market that can be purchased. This policy protects you when you offer Uber ride-sharing services and costs significantly less than a commercial insurance policy. Interested in getting this policy or have questions? Simply complete the form on your right.
What does this new insurancecost?
Technically it is not a new insurance policy but an addition (also called endorsem*nt) to your existing car insurance policy. The cost of this endorsem*nt starts at approximately $600 per year. Here a few examples of several possible scenarios:
| Scenario 1 | Scenario 2 | Scenario 3 |
|---|
| Driver gender/age | Male, 45 | Female, 38 | Female, 52 |
| Driving history | No tickets in the last 3 years | No tickets in the last 3 years | One speeding ticket in the last 3 years |
| Location | Berrie, ON | Mississauga, ON | Toronto, ON |
| Car make and year | 2010 Ford Focus | 2010 Chrysler 300 Touring | 2010 Dodge Grand Caravan |
| Time driven for Uber | Less than 20 hours per week | Less than 20 hours per week | Less than 20 hours per week |
| Estimated costs (on top of car insurance policy) | $785/year | $672/year | $1038/year |
Are there any important things to know about this policy?
Yes. This policy has a few limitations that you need to know about:
- Maximum driving time for Uber: It covers Uber drivers only if they drive on a part-time basis, defined as up to 20 hours a week. Should you drive more than that, an insurer claims that “The cost for the additional coverage will equate to a small portion of the income earned by the driver, calculated using factors such as time spent ride-sharing, area driven and driving record.”
- Number of passengers: You can drive a maximum of eight passengers at the same time including yourself (basically, seven passengers and one driver).
- Length and type of licensing: You should be licensed for a minimum of six years (G2 and up) in Canada or the US.
- Other commercial activity: No other commercial activity, e.g. offering moving transportation services, food delivery or courier services is allowed.
- Not a taxi or limousine: Your vehicle cannot be registered as a taxi or limousine.
When am I covered if Ioffer ride-sharing services?
The following overview shows exactly when you are covered by ride-sharing insurance.
| You are logged on and awaiting passenger allocation | You are on route to pick up the passenger | You are transporting the passenger to his/her destination |
|---|
Covered |
Covered |
Covered |
Is ride-sharing insurance available across all provinces?
Ride-sharing insurance is currently available in Ontario only, but it will probably be expanded into other provinces soon.
How can I get it?
In you are interested in getting insurance to cover ride-sharing services that protect you from unexpected accidents, simply complete the form on your right and an experienced insurance professional will contact you to provide more information or, if desired, to offer you a free insurance quote.
Uber insurance quotes are enabled by Mitchell and Whale Insurance Brokers,voted #1 Insurance Brokerage in Ontario by the Insurance Business Canada magazine. We also thank Adam Mitchell, President of Mitchell and Whale Insurance Brokers,for his insight about Uber insurance.
FAQs
If you plan on driving for Uber, the company will require that you provide proof of your insurance coverage before they will allow you to drive. That said, they will not contact your insurance company directly. Providing your proof of insurance is enough to satisfy Uber's requirements.
Should I tell my car insurance about Uber? ›
However, because your rideshare company's policy may not cover you in situations when you're waiting for a passenger, most insurers, including Progressive, require you to add rideshare insurance to your personal auto policy if you drive for Uber, Lyft, or any other rideshare service.
Can I do Uber Eats if my name isn't on my car insurance? ›
Please note that Uber cannot allow a vehicle onto the platform if the driver's name is not on the insurance document.
Is Uber delivery insured? ›
Uber provides $1 million of liability coverage per incident, which is covered by Uber's commercial insurance policy.
Does Uber really verify insurance? ›
As required by law, you must maintain personal automobile insurance at mandatory minimum limits and provide proof of your insurance to drive with Uber. Uber maintains commercial auto insurance on your behalf for ridesharing and delivery activities when you're driving on our platform.
How much can I get from Uber settlement? ›
Average Uber Accident Settlement in California
| Stage of Ride Accident Happens | Average Settlement |
|---|
| When the App is Off | Approximately: $20,000 – $80,000 |
| Waiting for a Ride Request | Approximately: $50,000 – $175,000 |
| In Route to Pick Up Passenger(s) | Approximately: $150,000 – $1,000,000+ |
1 more rowJan 5, 2024
Auto Insurance can be deducted as an Actual Expense (not applicable if you claimed Standard Mileage Deduction). Based on the business use of your vehicle. Food and drinks provided to your clients is deductible on your return. You can only deduct 50% of the cost.
Do I have to tell Geico about Uber? ›
Yes, you must tell your insurance provider that you drive for Uber Eats.
Does rideshare insurance cover DoorDash? ›
Most major insurers don't allow you to use your personal car insurance or umbrella policy for business purposes. You need rideshare insurance in any situation where you drive your car to earn money, whether you drive for ride-hailing companies like Uber or Lyft or an app-based delivery service like DoorDash.
What is the oldest car Uber will accept? ›
Lyft and Uber Vehicle Requirements
For both Lyft and Uber, vehicles must be no more than 15 years old and have four doors. They should be in good condition with no cosmetic damage or missing parts. Furthermore, neither platform allows vehicles with a salvaged, reconstructed, or rebuilt title.
Uber Black matches riders with top-rated drivers driving luxury vehicles for a higher price. Whether for a business meeting or a special night out, riders rely on Uber Black for a 5-star experience.
Does Uber provide its own insurance? ›
Some companies, such as Uber and Lyft, provide rideshare insurance coverage. In these cases, you can meet California's requirement without purchasing your own rideshare insurance policy. However, with the coverage the company provides, you won't receive every benefit a personal policy might include.
Does Uber protect its drivers? ›
Uber's Safety Policy
In order to protect its drivers, Uber has an in-app emergency button that connects the driver to the nearest 911 dispatcher. Uber discourages the carrying of firearms while working as required by the law. Though there is a no gun policy, laws in different states can challenge this ruling.
Do I need extra insurance for DoorDash? ›
A: Yes, while doing business as an independent contractor, you are required to maintain your own insurance, in the amounts and of types required by law which includes, but is not limited to, an auto insurance policy. If you fail to maintain your own insurance, DoorDash's coverage may not apply.
Which insurance do I need for Uber? ›
As an Uber taxi driver, you will need specialist private hire taxi insurance as your work involves collecting passengers for pre-booked journeys. Standard private car insurance or van insurance is not enough to cover the risks associated with carrying passengers for hire and reward.
How long does Uber take to verify documents? ›
Submit original documents only
It may take up to 48 hours for your documents to be reviewed and verified.
Which insurance company covers Uber in Ontario? ›
Which Uber products are covered by the commercial auto insurance policy issued by Economical? In Ontario, Quebec, Alberta, Nova Scotia, and Newfoundland, ridesharing and delivery with Uber are covered by the commercial auto insurance policy issued by Economical.
