How Does Uber Insurance Work? (All You Need to Know)

For all drivers, one factor that provides peace of mind is knowing they’re covered while on the road. Fortunately, Uber drivers have access to insurance.

But you may wonder: how does Uber insurance work, and is it worthwhile? If you’d like to find out, keep reading!

How Does Uber Insurance Work in 2022?

Uber insurance works differently depending on where you are, but a common principle is that you’re covered when you’re online in 2022. Uber’s insurance covers injury to others and their property, but not you and your car, unless it’s required to do so in your state. You can pay extra for ride-share insurance or Uber’s Injury Protection.

Read on to learn everything you need to know about Uber’s insurance, including what happens in accidents, how much you’re covered for, and more!

Does Uber Ask for Proof of Insurance?

Uber asks for proof of insurance before you get approved because it’s illegal to drive a car without coverage.

However, you can get approved if you’re only listed as one of the covered persons under someone else’s policy, and the company also maintains its own insurance.

What Happens If My Uber Vehicle Is in an Accident?

If your Uber vehicle is in an accident, what happens next depends on whether you were online at the time; if not, you’ll need to go through your own insurer.

However, if you were online waiting for a request and your insurer doesn’t cover it, Uber maintains the following:

  1. $25,000 in property damage per accident
  2. $50,000 in bodily injury per person
  3. $100,000 in bodily injury per accident

If you were on the way to pick up a rider or in the middle of a trip, you qualify for the following:

  1. $1 million third-party liability
  2. Under insured/uninsured motorist bodily injury/first-party injury insurance
  3. Up to the car’s cash value with a $2,500 deductible if your original coverage allows

These laws sometimes vary by state, so it’s best you know how it works in your area before getting started.

Currently, Uber provides coverage through Allstate, Farmers, Liberty Mutual and Progressive.

How Much Does an Uber Settlement Come Out To?

How Much Does an Uber Settlement Come Out To?

An Uber settlement might go as high as $1 million, but this is for serious accidents that result in serious accidents (e.g. brain damage or injuries resulting in death).

However, we strongly advise you to speak to a legal expert before pursuing a settlement from the company to verify your options.

Will My Insurance Drop Me If I Drive for Uber?

Depending on your policy, your insurer might drop you if you drive for Uber because it’s considered a risk.

However, your insurance provider might try to push you to take up ride-share insurance instead. Some of the leading companies that offer ride-share insurance include:

  1. USAA
  2. Mercury
  3. Allstate
  4. Progressive
  5. State Farm
  6. Farmers

You can ask your current insurer if they have the policy or, if you don’t want to tip them off about your work immediately, look online for their options.

Unless the kinds of rides you’re providing require it, be careful not to sign up for commercial insurance, which might cost more and may not provide adequate coverage for ride-sharing.

How Do I File a Claim on the Uber App?

Uber has a section in its app and website where drivers can report an accident. After filing a report, the claims team will contact you.

There are also similar sections for riders and third parties to report incidents and file claims.

Is Uber Insurance Worth It?

Ride-share insurance is generally worth purchasing because it gives you more options if you get into an accident.

Many insurers will reject a claim if they find out that you were using your car for work, and Uber only considers claims that happened while you were actively working.

Ride-share insurance will cost you more, but at an average of less than $30 a month, we’d say it’s advisable to purchase.

Is Uber’s Injury Protection Worth It?

Generally, Uber’s Injury Protection is worth it because it provides an extra layer of coverage.

Many of the company’s more substantial coverage options have terms that only apply to the damage to third parties.

With Injury Protection, you get:

  1. Disability payments where your earnings get replaced up to $500 a week
  2. Medical expenses up to $1 million with no copay or deductible
  3. Survivor benefits of up to $150,000 for your family

After you set it up, your payments are deducted automatically from every trip, so you don’t have to worry about falling behind.

For drivers in California, the company pays the premiums.

Does Uber Reimburse Insurance?

Unfortunately, Uber does not reimburse insurance, but you could claim it on your taxes as a business expense and deduct it, especially if it’s commercial or ride-share coverage.

However, we recommend keeping any proof of payment from your insurer and consulting a tax professional beforehand.

To know more, you can also read our posts on whether or not Uber hires felons, is Uber legal, and Uber Black.

Conclusion

Uber insurance works by covering you only if you were online in the app, including during trips. Otherwise, you’ll need to file a claim with your own insurer. There’s also Injury Protection, which you can pay extra for to increase your own coverage options.

Most major insurers these days have ride-share insurance at an extra cost, but it provides more coverage. You might be able to claim your Uber insurance on your taxes if you got it specifically for the job, such as commercial or ride-share coverage.

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Mackenzie Jerks

Mackenzie is a freelance writer and editor, published author, and music enthusiast who holds a Bachelor of Science in Business Administration. When she’s not writing, Mackenzie is either wrapped up in a book, discovering new music, or introducing herself to a new fitness regimen.

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