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
Uber will only do the minimum amount of due diligence to determine if you have insurance coverage. While they will require proof that you have a policy, they do not ensure that your policy applies while operating as a rideshare driver. This could lead you to believe you have comprehensive coverage when you do not.
Is Uber insurance worth it? ›
Do I need rideshare insurance? Buying a rideshare-specific insurance policy may not be legally required to work as a rideshare driver where you live. However, we strongly recommend that all rideshare drivers add an endorsem*nt to their policy or, at a minimum, consult with your insurer before signing up.
Does insurance need to know about Uber? ›
And, if you're driving for Uber, Lyft, or any other rideshare company, you ABSOLUTELY MUST tell your insurer or they too can decline to pay out anything. Nearly every auto insurance company will deny paying out on a claim if the vehicle is transporting paying passengers unbeknownst to the insurer.
How does Uber know if you have insurance? ›
When a carrier receives an insurance verification request, they look up the insurance coverage for the given driver, vehicle pair. If a valid insurance coverage is found, the carrier follows up by upserting a digital insurance document to Uber.
What is the best insurance for Uber drivers? ›
If you drive for a delivery app, State Farm is your best choice for rideshare insurance. State Farm's policies cover a wide variety of delivery drivers and it's a good option if you drive for multiple companies, like Uber and Postmates, or Lyft and Grubhub.
How long does it take for Uber to verify your documents? ›
When you upload documents to Uber, they are usually reviewed within 24 hours. Follow these tips to help speed up your application process: Check Expiration Dates: Ensure all documents are current and not expired. We cannot accept expired documents, which means resubmitting them will delay the process.
What happens if you damage an Uber car? ›
As outlined in our Community Guidelines, if a rider damages property, they're responsible for the cost of cleaning and repair fees, outside of normal wear and tear. If you want to report an incident involving a rider that resulted in damage to your vehicle beyond normal wear and tear, please let us know here.
What is Uber optional insurance? ›
This insurance, offered through Uber's partner Aon, provides a safety net at a cost of under four cents per mile. Benefits include: Medical expenses: Coverage up to $1,000,000 without the need for deductibles or copays. Disability payments: Get up to $500 per week if a covered accident affects your income.
Should I trust an Uber? ›
Traditional Uber also tends to be the safest option because of the app's built-in safety features and also because the company does background checks on its drives. Although there are a number of competitors out there, they may not all have the safety features and driver screening that Uber offers.
What is Uber Black? ›
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.
Q: Does DoorDash have insurance? A: Yes, DoorDash has a commercial auto insurance policy that covers up to $1,000,000 in bodily injury and/or property damage to third parties arising out of accidents while on an active delivery. More information is available here.
How do I delete my Uber driver account? ›
In order to delete your Uber driver account, you'll need to send an email to Uber support.
- Sign in to your Uber account.
- Select the Help tab.
- From the drop-down menu, select Contact Support.
- Draft an email to support@uber.com with the subject line “I want to delete my driver account”
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.
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.
Is Uber delivery insured? ›
Uber provides $1 million of liability coverage per incident, which is covered by Uber's commercial insurance policy.
How does Uber verify drivers? ›
Yes, all drivers and delivery people submit identity verification documents and other information when creating an account to use the Uber platform. Drivers and delivery people are also required from time to time to take a selfie in order to confirm that the selfie matches the photos that have been submitted.
Do I need to tell my insurance I drive for DoorDash? ›
If you deliver with DoorDash or another TNC, you should let your insurance provider know and look into its rideshare insurance coverage. If you choose to not let your company know about you using your vehicle for work, you may have your insurance claims denied in the event of an accident.
Does Uber make you verify your identity? ›
At Uber, safety is a top priority. We require that users of certain products verify their accounts or the identities they report to us.
