Many car owners become Uber drivers because they get to control their own work schedule and meet new people—and the sign-up bonus is always nice. However, what happens when there’s an Uber accident? What insurance coverage is available in this case?
Any experienced rideshare accident lawyer will know that Uber provides a $1 million rideshare insurance policy. A personal auto insurance policy does not cover the driver during rides if he or she is driving for Uber. Most car insurance providers view driving for Uber as a commercial activity, and most policies exclude such activity in their regular coverage.
Requirements for $1 Million Rideshare Insurance Policy
Uber drivers have a certain level of insurance by default. The rideshare company provides it to them once they become part of the company. The insurance policy covers the activity of the driver at the time of the Uber accident.
When the driver is using the vehicle for personal purposes and not available to accept rides from the app, then the Uber insurance policy doesn’t apply. Instead, the personal policy of the driver takes effect (if qualifying insurance is available).
If the driver is available on Uber and he/she is not yet carrying a rider during the accident, the primary insurance will be the driver’s personal policy. However, the ridesharing company provides additional coverage for liability up to $50,000 for each injury and a maximum of $100,000. Uber’s insurance policy will also cover a maximum of $25,000 in damage to property.
When the driver is carrying a rider during the time of the Uber accident, then the $1 million insurance policy takes effect. Both the driver and the passenger are covered by the liability insurance policy. If there are third parties injured in the accident, the policy also covers them.
Uber’s insurance policy provide drivers the right amount of insurance required by the State of California when it comes to minimum financial responsibility. The rideshare insurance policy protects both drivers and passengers.
The rideshare insurance policy provides $1 million of liability coverage for each Uber accident; $1 million of underinsured/uninsured motorist injury coverage for each incident; collision and contingent comprehensive insurance; and no-fault coverage.
Cost of Uber Driver Insurance
The driver insurance from Uber is affordable. According to rideshare accident lawyer, the insurance is worth every penny. The cost of the policy from a private insurance provider is around $6 to $20 a month. The cost depends on the coverage amount, the city you are driving in, a provider of the policy, and other factors.
Drivers can also opt for a commercial insurance that provides more protection for drivers when they are logged into the Uber app. Commercial insurance is advisable for high-end vehicles such as UberSUV and UberLUX. While this type of policy is more expensive than the standard rideshare policy, it provides greater coverage for the driver.
These are the things you need to know about Uber’s $1 million rideshare insurance policy. If you are involved in an Uber or Lyft accident, it is advisable to contact a rideshare accident lawyer right away. The right accident lawyer can help you sort things out and guide you through the process.