UBER INSURANCE: Where To Buy It and How It Works

Uber Insurance
Imag Credit: DailyTrust

Since its founding in 2009, Uber has disrupted the transportation industry and changed its ways. The company has also been a pioneer in the sharing economy, and its success has inspired other businesses to adopt similar models. One area where Uber has been less innovative, however, is in its approach to insurance. The company is embroiled in lawsuits over its insurance coverage for not giving enough protection to its drivers and passengers. So the company is introducing a new insurance product that will provide coverage for drivers and passengers during rides. Hence, in this post, we’ll discuss everything you should know; where to buy Uber Insurance, its requirements, and how it works.

What Is Uber Insurance?

Uber insurance provides coverage for Uber drivers while they are driving. It covers the driver for liability arising from accidents. The insurance also covers the vehicle for damage caused by the driver. 

Uber insurance is usually more expensive than regular insurance, but it is designed to meet the needs of Uber drivers.

How Does Uber Insurance Work?

Uber insurance typically covers drivers when they log into their app and are available to accept trips. Once their drivers start a trip, the commercial policy covers them with $1 million in liability coverage. 

In the U.S.A., insurance is different from other countries. For instance, in the U.S., Uber insurance is provided by a third-party company called James River Insurance Company. 

To get coverage with James River Insurance Company, you must first be a registered Uber driver and provide your personal and vehicle information. 

After submitting your information, you will get a quote from the company. The rates for the insurance will vary depending on some factors, including the type of vehicle you drive and your driving history. 

However, you can expect to pay around $16 per week for coverage. This policy covers the driver from when they accept the trip to when they drop the passenger off. But the insurance will not cover damages if a driver has an accident while not logged into their app.

What Uber Insurance Requirements?

To drive for Uber, you must have personal automobile insurance that meets your state’s minimum coverage requirements. Your personal insurance policy must have the following:

  • Bodily injury liability coverage with individual limits of at least $50,000 per person and $100,000 per accident.
  • Property damage liability coverage with a limit of at least $25,000.
  • Uninsured/underinsured motorist bodily injury coverage with individual limits of at least $50,000 per person and $100,000 per accident.
  • Collision coverage with an individual deductible of no more than $1,000.
  • Comprehensive coverage with a deductible of no more than $1,000.

As a driver for Uber, you are responsible for maintaining your auto insurance policy that meets or exceeds the above Uber insurance requirements.  If you do not have personal protection that meets these requirements, Uber offers two options:

  • UberX: Drivers must purchase insurance from the driving company that meets the above requirements.
  • UberSELECT: Drivers must have commercial insurance that meets or exceeds the above requirements.

Types Of Uber Insurance

There are four different types of Uber insurance in the United States:

#1. Personal auto insurance:

This insurance covers people’s vehicles. If you use your vehicle to drive for Uber, your auto protection will be the primary coverage.

Personal auto insurance policies in the United States typically do not cover ridesharing activities such as driving for Uber. However, some insurers are starting to offer coverage for ridesharing. This type typically covers you when you have your app is on and are available to accept rides and when you are transporting a passenger. It generally does not protect you while you are off duty.

If you want to become a rideshare driver, check with your insurance company to see if they offer this type of coverage. If not, you may need to purchase a separate policy. Ridesharing can be a great way to earn extra income, but it is best to insure your car before you hit the road.

#2. Uber’s insurance policy:

Uber has an insurance policy that provides coverage for drivers that log into the Uber app and are available to accept rides. This insurance policy has three tiers of coverage, depending on whether the driver is actively engaged in a ride, on their way to pick up a rider, or just log into the app.

#3. Rental car insurance:

If you rent a car to drive for Uber, you will need to have rental car coverage. This will be the primary coverage if you are in an accident while driving for Uber.

It covers up to $1 million in damages and is designed to protect drivers if they are in an accident while driving for Uber. The insurance also includes uninsured/underinsured motorist coverage, which protects drivers if they are in an accident with a driver who does not have insurance or does not have enough insurance to cover the damages.

#4. Commercial auto insurance:

If you have a commercial auto insurance policy, it will be the primary coverage driving for the company.

The average cost of commercial auto insurance in the United States is $5,365 yearly. This rate is generally higher than personal auto insurance rates because commercial auto insurance policies cover vehicles used for business purposes.

Uber requires its drivers to maintain commercial auto insurance at all times while they are logged into the Uber app and providing rides to passengers. The company gives $1 million of commercial auto liability insurance coverage to its drivers that use the app and carry passengers. This insurance coverage applies to UberX, UberXL, Select, and WAV trips.

What Kind Of Insurance Do I Need For Uber Eats?

To become an Uber Eats driver in the United States, ensure you have the proper coverage. While the company does provide some coverage for drivers, you should understand that there are gaps in this coverage. For example, Uber’s insurance will not cover you if you get into an accident while you are not using the Uber Eats app. This is why it’s best to have your personal insurance policy in addition to cab insurance.

There are a few different types of insurance you should consider as an Uber Eats driver:

  • Liability: This will protect you financially if you’re involved in an accident that causes damage to someone else. 
  • Collision and comprehensive: This will protect your vehicle from accident damages or if stolen.

Getting the right coverage can be a bit confusing, but make sure you’re well-protected. If you have questions, speak with the company’s agent who can help you understand your options.

How Much Does Uber Spend On Insurance?

According to a recent study, in the U.S. Uber spends about $50 million on insurance every year. This insurance covers the drivers and passengers on things like accidents, injuries, and property damage. It is important to note that this is just an estimate because the actual amount can be higher or lower.

There can be a lot of risks using Uber, but their protection helps to make Uber a safe and reliable option for transportation.

How Does Uber Insurance Coverage Work?

In the United States, Uber offers coverage to drivers through commercial insurance policies. These policies protect drivers when carrying passengers for Uber and provide coverage for accidents, injuries, and property damage. 

The coverage comes in three sections: collision, liability, and uninsured/underinsured motorist.

Collision coverage covers damage to the driver’s vehicle in an accident, while uninsured/underinsured motorist coverage covers the driver’s injuries and property damage if hit by a driver who does not have insurance. 

Does Uber Eats Ask For Proof Of Insurance?

Uber Eats requires its drivers to maintain their auto insurance policy that meets or exceeds its minimum coverage requirements. The drivers will need to provide proof of insurance to Uber.

For instance, if an Uber Eat driver has an accident while delivering food, his/her personal insurance policy will be the first to cover damages. Uber Eats provides third-party liability protection for drivers, but it only kicks in after the driver’s personal insurance policy has been exhausted. This covers up to $1 million in damages caused by the driver while delivering food for Uber Eats.

What Happens If You Get In An Accident While Driving For Uber Eats?

In the United States, if you get in an accident while driving for Uber Eats, Uber Insurance policy may cover you. The policy provides up to $1 million in coverage for bodily injury and $50,000 for property damage.

If you have your insurance policy, it may also cover you in the event of an accident, but if found to be at fault for the accident, you may be responsible for paying any damages not covered by insurance.

Are Passengers Insured In An Uber?

Yes, passengers are insured in an Uber. The firm has a $1 million coverage policy that covers passengers in the event of an accident. This policy covers passengers for injuries sustained in an accident and property damage. 

In addition, the company has a $50,000 policy that covers passengers in the event of a hit-and-run accident.

Do Uber Insure Their Drivers?

Yes, Uber does insure their drivers in the United States. This is done through a commercial policy with James River Insurance Company. The policy covers bodily injury and property damage caused by Uber drivers while on the job.

It also provides uninsured/underinsured motorist coverage in case the driver is involved in an accident with someone who does not have one.

Does Insurance Increase With Uber?

Yes, insurance rates go up when you sign up. This is because Uber is a transportation network company with different standards. However, they give $1 million of coverage for every driver on the platform, which is the same amount taxi companies are required to have.

NOTE: If you’re looking to buy UBER insurance, be sure to do your research and understand how it works before making a purchase. There are a few different types of UBER insurance, and not all of them may be right for you. Therefore, read the fine print and ask questions before buying any insurance policy to know what you’re getting into.


Uber insurance is a great way to protect yourself and your passengers. But understand how it works and what coverage you have to make the best decision for your needs. While there are some drawbacks, the overall protection is solid and can provide peace of mind for drivers and their families.

  1. HOW DOES UBER MAKE MONEY? All You Need To Know
  2. UBER REQUIREMENTS: Uber Drivers Requirements
  3. HOW UBER EATS MAKES MONEY: All You Need To Know
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