# Uber Drivers are insured by Uber



## MissouriTiger (Jun 3, 2019)

There is a ton of discussion on the WWW about Uber drivers supposedly not being insured, and there are discussions here about insurance companies dropping Uber drivers. None of this makes sense to me. I know the typical auto policy doesn't cover you when you are driving for hire, but at the link below, Uber explains that drivers are covered for liability whenever the app is on, and I have an email stating that my vehicle is covered. I don't understand what the problem is.

If I am in some way not covered, can someone please explain how?


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## WAHN (May 6, 2019)

MissouriTiger said:


> Uber explains that drivers are covered for liability whenever the app is on, and I have an email stating that my vehicle is covered.


Your car(collision) is only covered after you've accepted a ping through the end of the ride.

If something happens while the app is on and you're waiting for a ping, only liability applies.

If something happens during that period and you don't have a rideshare add-on from your personal insurance, you'll eat the damages to your car and possibly be dropped by your insurance for not telling them you do rideshare.

https://www.uber.com/drive/insurance/
https://help.lyft.com/hc/en-us/articles/115013080548-Insurance-Policy


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## MontcoUberDriver (Aug 14, 2018)

I pay $20 a month for a rideshare add on. Seems stupid not to do it considering how little it costs.


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## Roadmasta (Aug 4, 2017)

Uber deductable is $1,000 and Lyft is $2,500. If you have a newer vehicle I wouldn't drive for Lyft. Average claim for collision is around $3,500.


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## doyousensehumor (Apr 13, 2015)

MissouriTiger said:


> There is a ton of discussion on the WWW about Uber drivers supposedly not being insured, and there are discussions here about insurance companies dropping Uber drivers. None of this makes sense to me. I know the typical auto policy doesn't cover you when you are driving for hire, but at the link below, Uber explains that drivers are covered for liability whenever the app is on, and I have an email stating that my vehicle is covered. I don't understand what the problem is.
> 
> If I am in some way not covered, can someone please explain how?


Read your insurance policy. It is a personal policy. Will say no commercial use. And will say ridesharing coverage is excluded.


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## BigJohn (Jan 27, 2016)

MissouriTiger said:


> There is a ton of discussion on the WWW about Uber drivers supposedly not being insured, and there are discussions here about insurance companies dropping Uber drivers. None of this makes sense to me. I know the typical auto policy doesn't cover you when you are driving for hire, but at the link below, Uber explains that drivers are covered for liability whenever the app is on, and I have an email stating that my vehicle is covered. I don't understand what the problem is.
> 
> If I am in some way not covered, can someone please explain how?


First, thank you for wanting to understand the complexity of insurance. Too many people think of insurance as one product, one item. It is not. So, let me break it down:

*Third party liability insurance coverage*
This is insurance coverage to third parties (the other vehicles, other persons, street lights, buildings etc and so on) that your actions as a driver doing Uber (Lyft) Rideshare service have caused damage/injury to as a result of your action or inaction. This is fully provided by Uber insurance once you have accepted a assignment (ping, job, ride) until that assignment is completed. This in rideshare terminology is commonly called period 2 and 3.

*Rider liability insurance coverage*
This is insurance coverage to a rider that you are transporting under a Uber (Lyft) rider that your actions as a driver doing Uber (Lyft) Rideshare service have caused damage/injury to as a result of your action or inaction. This is fully provided by Uber insurance.

*Your vehicle damage insurance coverage*
This is insurance coverage to your vehicle while performing any duty or such related while doing an Uber (Lyft) Rideshare service in which your vehicle becomes damaged. If the damage is not your fault and at the time of the damage you were on an active ride (commonly known as period 2 or 3) then Uber insurance will provide coverage limited to the amount of comp/collision coverage YOU have for the vehicle on YOUR OWN personal auto liability policy, subject to a $1,000 deductible. However, YOUR personal auto liability policy must be in active force at the time of the damage. Meaning that IF your personal auto insurance policy ends up being cancelled retroactively by your personal auto insurance company, Uber will NOT pay under this coverage. Also, normal insurance subrogation clauses apply.

*Your personal auto liability insurance policy*
Your personal auto liability insurance policy probably has explicit language in it (not the 3-5 page recap but the 30-50 document) expressly excluding any commercial use of the covered vehicle AS WELL AS expressly PROHIBITING such commercial use of the covered vehicle. As such, to use a vehicle covered by personal auto liability insurance policy with such language for Rideshare service is a direct VIOLATION of the policy which the insurance company can and will invoke not only the cancelation clause of the policy, but do so retroactively to a time when it can be proven you were do such rideshare service. ALSO, it is technically INSURANCE FRAUD.

*Retroactive cancelation of YOUR personal auto liability insurance policy*
So to explain this, if you were to get into an accident while transporting a rider under a Uber Rideshare service ride on March 12, 2019 at 3:14 PM and your personal auto liability insurance company finds out, they can retroactively cancel that policy back to March 12, 2019 at 12:01 AM. If that occurs, Uber insurance WILL NOT pay for your vehicle damage even though otherwise it would have been covered.

*What happens if your personal auto liability insurance policy is canceled for a violation of terms and conditions*
If that happens, that cause will be recorded in the national insurance underwriters database and you will now be considered a high risk driver and it will be difficult and expense to obtain ANY personal auto liability insurance policy.

*So what do you do?*
You have to get what is called a Rideshare Rider onto your personal auto insurance policy which then specifically allows your personal auto insurance policy to remain in full effect even though you are engaged in a commercial usage by doing Rideshare service. AND THAT IS ALL IT DOES. Contrary to what many believe and state on forums, the Rideshare Rider in no way provides any additional insurance coverage as defined by the insurance industry.

I hope this helps.


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## wicked (Sep 24, 2017)

Comprehensive deductible is $0 and collision is $500. Comprehensive allows me to keep my cool when an ass wipe keys my car at a red light for example.

Windshield replacements are no sweat now. I've been through 3 in three years of driving.

The glass is nothing. It's the UV window film that pisses me off.


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## NotanEmployee (Apr 20, 2019)

also, ubers policies cover liability and collision (if you have collision coverage on your personal policy) but there is no coverage for your bodily injury. this means if someone hits you then your expenses are out of pocket until a lawsuit is settled and paid...this could mean bankruptcy to you. some rideshare policies cover things that uber/lyft insurance doesnt cover. mine also reduces the uber deductible. its all worth researching.


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## IR12 (Nov 11, 2017)

MissouriTiger said:


> There is a ton of discussion on the WWW about Uber drivers supposedly not being insured, and there are discussions here about insurance companies dropping Uber drivers. None of this makes sense to me. I know the typical auto policy doesn't cover you when you are driving for hire, but at the link below, Uber explains that drivers are covered for liability whenever the app is on, and I have an email stating that my vehicle is covered. I don't understand what the problem is.
> 
> If I am in some way not covered, can someone please explain how?


Please consider getting your own insurance.
Note: Lyft & UBER have no problem leaving you holding the bag. Many drivers have had to file bankruptcy & have long-term medical needs.

I wish you the best.


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## islanddriver (Apr 6, 2018)

No every state has ride share insurance.


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## WAHN (May 6, 2019)

islanddriver said:


> No every state has ride share insurance.


In those cases, you need commercial insurance if you want to be completely covered and not risk cancellation by your personal insurance.


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## islanddriver (Apr 6, 2018)

Allstate and statefarm won't cancel you. And commercial insurance is $4000. Plus a year here.


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## Robert Larrison (Jun 7, 2018)

In '91 I got a Toyota LE to do delivery with and I lied to the insurance company I told them I sold shoes and I needed commercial plates to park in yellow zones when I go to shoe stores.

The delivery company I was working with called to verify and the policy was cancelled immediately with no refund (I paid cash for 1 year of coverage)


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## Gandler (Jan 27, 2019)

Robert Larrison said:


> In '91 I got a Toyota LE to do delivery with and I lied to the insurance company I told them I sold shoes and I needed commercial plates to park in yellow zones when I go to shoe stores.
> 
> The delivery company I was working with called to verify and the policy was cancelled immediately with no refund (I paid cash for 1 year of coverage)


How is that a lie if you were actually delivering shoes in 91?


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## 49matrix (Feb 3, 2015)

MontcoUberDriver said:


> I pay $20 a month for a rideshare add on. Seems stupid not to do it considering how little it costs.


That's about what I pay with National General and I am fully covered at all times. In addition my deductible is only $500 and not the $1000 that Uber requires for less than full coverage. I have spoken with drivers who rely solely on the Uber insurance and have had to make claims and some have had good experiences, others not so. There again, I only have their side of the story!


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## re2fla (May 15, 2019)

BIG thank you to BigJohn's explanation above, basically driving without telling your insurance company is fraud and they will cancel you retroactively to the time of the accident and so Uber/Lyft may not cover you either as at the time of the accident you technically did not have any personal insurance, if your insurance does pay out and finds out later you were driving for Lyft you could be cancelled and charged with insurance fraud and be held liable for damages and payouts etc... Also, being cancelled by your insurance company puts you on a high risk list making it hard for you to obtain affordable insurance.

Please check out the link below, it was accurate for State Farm, (Allstate does now cover FL for only $40 a year per a friend who works there), unfortunately State Farm charges $25 extra per month or $300 a year, and they only cover part time drivers so you can not drive for more than 20 hours per week....

https://www.nerdwallet.com/blog/insurance/best-ridesharing-insurance/


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## SEAL Team 5 (Dec 19, 2015)

Uber Drivers are insured by Uber

Really? I didn't know that Uber was an insurance company. What is their NAIC number?



Robert Larrison said:


> In '91 I got a Toyota LE to do delivery with and I lied to the insurance company I told them I sold shoes


I remember somebody else selling shoes back in '91, but he had a Dodge.


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## peteyvavs (Nov 18, 2015)

IR12 said:


> Please consider getting your own insurance.
> Note: Lyft & UBER have no problem leaving you holding the bag. Many drivers have had to file bankruptcy & have long-term medical needs.
> 
> I wish you the best.


I carry a 100,000 dollar rideshare coverage in addition to my regular coverage, too many drivers find out the hard way after they get into an accident that not having full coverage insurance and rideshare coverage can bankrupt them. 60 minutes ran an episode on a guy who had just basic minimum coverage and was sued for the excess cost of damages, he lost his home and had his license suspended until the injured party was paid.
He didn't have the app on so Uber assumed no liabilities and his insurance company didn't pay because he violated the terms of his automobile insurance policy because they found out he drove for Uber.
Get rideshare coverage to protect yourself.


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## Older Chauffeur (Oct 16, 2014)

peteyvavs said:


> I carry a 100,000 dollar rideshare coverage in addition to my regular coverage, too many drivers find out the hard way after they get into an accident that not having full coverage insurance and rideshare coverage can bankrupt them. 60 minutes ran an episode on a guy who had just basic minimum coverage and was sued for the excess cost of damages, he lost his home and had his license suspended until the injured party was paid.
> He didn't have the app on so Uber assumed no liabilities and his insurance company didn't pay because he violated the terms of his automobile insurance policy because they found out he drove for Uber.
> Get rideshare coverage to protect yourself.


I missed that episode of 60 Minutes, and can't find anything about it. @BigJohn has warned many times about this sort of thing happening, but I hadn't previously heard about someone losing his home. Sad.


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## peteyvavs (Nov 18, 2015)

Older Chauffeur said:


> I missed that episode of 60 Minutes, and can't find anything about it. @BigJohn has warned many times about this sort of thing happening, but I hadn't previously heard about someone losing his home. Sad.


Never trust Uber or Lyft, protect yourself.


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## islanddriver (Apr 6, 2018)

Can't find any 60 minute shows on Uber. Did you see this or just heard about it on here


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## Older Chauffeur (Oct 16, 2014)

peteyvavs said:


> Never trust Uber or Lyft, protect yourself.


As noted in my signature, I don't do ride share, and my clients furnished the cars and insurance. My AAA policy excludes coverage for any kind of during for hire. I closed up my contract chauffeur business as of the end of 2018.
I concur with your excellent advice. Too bad that many drivers believe they are adequately covered without doing basic due diligence.  :frown:


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## peteyvavs (Nov 18, 2015)

islanddriver said:


> Can't find any 60 minute shows on Uber. Did you see this or just heard about it on here


I saw this 2 years ago, the Uber driver was from California.


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## islanddriver (Apr 6, 2018)

New York State Uber Insurance
https://www.uber.com/newsroom/nys-ridesharing-insurance/
Rideshare is not avalibale


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## peteyvavs (Nov 18, 2015)

islanddriver said:


> New York State Uber Insurance
> https://www.uber.com/newsroom/nys-ridesharing-insurance/
> Rideshare is not avalibale


N.Y. Is an exception, everywhere else rideshare endorsement is required.


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