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Uber insurance: a wrecked car on the side of the road at night

Your Guide to Uber Insurance: Get Insured Before You Get Wrecked

Last updated: March 24, 2020
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With one glance away from the road, even the safest drivers can get into accidents. When this happens on the job, Uber drivers to turn to Uber insurance ⁠— but what if your coverage ends up being far from enough?

Many rideshare drivers sign up for their gigs without knowing that their personal insurance policy won’t cover them on the job. At the same time, Uber insurance leaves gaps in your coverage that can leave you vulnerable in the case of an accident. To solve these issues, many insurance companies are beginning to offer rideshare insurance to ensure all your needs are met.

Keep reading to learn what Uber insurance actually covers, what rideshare insurance is, and what policies you should invest in.

What Does Uber Insurance Cover?

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Understanding the full extent to which Uber’s insurance program covers you will help uncover where you need extra protection.

Uber insurance can be broken down into four stages that provide different amounts of coverage:

  1. Offline: When you’re offline, you are covered by your personal policy. Uber insurance is not in place.
  2. Waiting for Requests: The moment you tap “Go” on your Uber Driver app and are available for ride requests, you are covered with Uber’s liability insurance only. In covered car accidents caused by the driver, this covers up to $100,000 per accident, $50,000 for bodily injuries per person, and $25,000 for any property damage you’re responsible for.
  3. En Route: From the time you accept a trip until you pick up your rider, your Uber insurance coverage is at its max. Your liability coverage increases to $1 million. If another uninsured driver is at fault, you’re covered for up to $250,000. If your personal car insurance policy includes comprehensive and collision coverage, Uber insurance will always cover your vehicular damage (with a $1,000 deductible) regardless of who’s at fault.
  4. On Trip: From the time you pick up your rider to the time you drop off your rider, you’ll receive the exact same coverage as when you’re en route.

As you may notice, the largest gap in your coverage is during the “Waiting for Requests” period, which often won’t provide enough financial help, especially if you’re involved in a major accident. Even when you’re covered in full, you’re faced with a $1,000 deductible for your vehicle, and medical expenses can still pile up.

What Is Rideshare Insurance?

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Auto insurance companies across the country are increasingly offering rideshare insurance as drivers are more and more drawn to Uber, Lyft, and similar gigs. In fact, it’s becoming an insurance requirement for a growing number of providers. Many insurance carriers will actually penalize or drop you for not disclosing that you’re a rideshare driver, as it may be seen as an attempt to extend your coverage to a time when you’re driving commercially.

How ridesharing insurance works varies by the company, but typically, it will work in one of the following ways:

  • Act as an add-on to fill in the exact areas where Uber insurance leaves gaps
  • Extend your personal auto insurance to offer additional coverage while you drive for your rideshare company
  • Replace your current insurance plan with one that’s more fitting for your career

Having this rideshare coverage will fill in the gaps in Uber’s commercial policy without forcing you to add an outrageous amount to your monthly bills. Rideshare policies are often as low as $6 per month and rarely add more than $25 per month to your auto insurance bill, making them affordable for an Uber driver’s average income. As with your personal auto policy, the final cost depends on your driving record, vehicle, age, and location.

Best Rideshare Insurance for Uber Drivers

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Sticking with your current insurance plan is often a smart choice, as many insurance companies will provide discounted prices when you have a bundle. However, getting rideshare insurance quotes from multiple companies can help you find the best deal. Here are three of the most popular options for Uber drivers:

1. Mercury Ride-Hailing Insurance

One of the most budget-friendly rideshare insurance options around, Mercury’s insurance policy fills in the exact gaps of your Uber insurance policy. This means you’ll receive full coverage during the “Waiting for Requests” stage, and gain additional padding during your “En Route” and “On Trip” stages.

Though you must have a Mercury personal auto policy to qualify, the company offers hard-to-beat prices for their rideshare add-on, starting at just $0.20 per day (about $6 per month). Mercury ride-hailing insurance will get you exactly what you need, so you don’t have to waste a dime on unnecessary and undesired additions to your coverage.

Mercury insurance is available in Arizona, Florida, Georgia, Illinois, Nevada, New Jersey, New York, Oklahoma, Texas and Virginia.

2. GEICO Rideshare Insurance

If you’re hesitant about managing a second policy, GEICO rideshare insurance is a popular pick among Uber drivers. Built to completely replace your personal auto insurance policy, this hybrid option will cover your everyday and rideshare driving. This way, your insurance will cover you through every single stage of driving. With the hybrid policy, you’ll only see a slight increase to your monthly auto insurance fees and receive lower deductibles.

The company specifies that this insurance option isn’t limited to rideshare drivers. If you drive for an on-demand delivery service like Instacart or Grubhub, you’re also eligible to receive this insurance.

GEICO rideshare insurance is available in all but 11 states, with exclusions including Hawaii and Texas. But the company is consistently offering this coverage to more locations.

3. State Farm Rideshare Insurance

Drivers who are currently insured by State Farm, or who are looking to switch, often prefer State Farm for its simplicity. By adding 15%-20% more to your current premium for your personal auto insurance’s monthly cost, your coverage will include the “Waiting for Requests” period. Your coverage during the other stages will depend on your personal policy selections.

Admittedly, this no-hassle option can get a bit pricey, but the brand is trusted among drivers — even beyond the ridesharing world — and is available in all but seven states.

FAQs About Uber Insurance

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Choosing to purchase rideshare insurance is a wise decision that will keep you financially secure, even if an accident occurs on the road. Here are some frequently asked questions to help you decide how to proceed:

1. Can rideshare insurance be deducted from taxes?

While you technically can deduct rideshare insurance from your taxes — if it’s an add-on or an otherwise separate cost from your personal auto insurance — it’s not recommended by most drivers and experts. This is because you can’t deduct both your insurance and your average mileage, and your average mileage will likely get you the larger deduction.

Still, we recommend keeping track of every business-related expense and consulting with your accountant before filing, as they can help you find the greatest deductions.

2. What can I do if my area doesn’t offer rideshare insurance?

While most states offer some form of rideshare insurance, this is still a fairly new concept. If your area doesn’t offer rideshare insurance, you can choose to purchase commercial auto insurance instead. This will come with a significantly higher cost, often ranging up to $100 per month, though you’ll have this form of insurance already if you’re an Uber Black driver.

3. Are Lyft drivers fully covered by Lyft insurance?

No, Lyft drivers are covered in the exact same way that Uber drivers are covered but with a far higher deductible. This means that no matter which app you drive for, you’ll be left highly vulnerable when you’re waiting for requests. You also won’t be covered to the extent that you should be while you’re en route or on trip unless you purchase rideshare insurance on your own.

4. Do I have to be a full-time driver to qualify for rideshare insurance?

In most cases, no. You’ll be able to sign up for this type of insurance no matter how much you drive. Insurance companies encourage or require rideshare insurance whether you’re a part-time or a full-time driver.

Insure Your Career

Uber insurance may appear to be all you need, but when you’re driving all through the day, it will leave you susceptible to large out-of-pocket fees in the event of an accident. Plus, personal insurance companies are increasingly cracking down on drivers who don’t disclose their affiliation with Uber and other rideshare companies. Now you know the options you have to protect yourself.

Of course, rideshare insurance isn’t the only type of insurance you should be thinking about. As an independent contractor, you won’t receive benefits from Uber, which means you’ll have to look out for options yourself. Click here to learn about your options when selecting your health insurance.

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