The Uber insurance policy details should be of interest to you. As an Uber driver or an Uber rider you should know what to expect in case you get into an accident.
Unfortunately that does happen sometimes although Uber drivers are doing the best they can not to get involved in accidents. Accidents are “accidents” the name implies it all, so there’s really nothing any driver can do to prevent one if it’s bound to take place.
As of February of 2013, Uber has ensured that all vehicles on the road are insured adequately for any type of incident.
I’m going to elaborate on it more for you in this post so that you have a very good understanding of the Uber insurance policy. When can you expect it to take effect, as well as of what the “three periods” mean.
Anytime you’re offline your personal insurance policy is your only coverage. But keep in mind many insurance companies will not accept to pay for your damages if you tell them you were Ubering.
What if you’re online but not currently on a trip?
According to Uber this is called “Period 1.”
As Uber an driver, being online covers you with the minimum insurance coverage they have available. However, in the case where you get into an accident they would want you to notify your personal insurance first.
In most cases your personal insurance would deny the case because you were driving for Uber, which they don’t cover you for. At this time your Uber coverage will kick in to repair your damages as well as to pay for your medical and everyone’s involved.
It’s very important that you know this coverage is very similar to the PIP coverage required by the state. Its limit is set at $50k/$100k/$25k, there’s no coverage for comprehensive or collision in this policy.
It’s just a contingent liability, so if your accident is a big one which requires you to fix or replace your car, you’ll have to do it out of your pocket. This minimum Uber insurance coverage won’t be enough to do so.
So, what’s Period 2 of the Uber insurance coverage?
Period two starts as soon as you receive a ping until you pick up the client. What’s the coverage of this period? During this periods you’re covered for up to $1 million liability.
This liability covers you for comprehensive and collision; you won’t have to pay a dime if you get into an accident. Nonetheless, the Uber ridesharing company still requires that you notify your personal insurance of the incident. Unfortunately for drivers it usually results in cancellation of their personal insurance policy, which could be a pain.
One important thing to note is that there’s a $1000 deductible. I have no idea why they would put it this high, maybe they expect your personal coverage to pay for it. If your damage is less than $1000 you’ll have to cover that on your own.
How’s the 3rd period of Uber insurance coverage?
The Uber insurance policy coverage for the third period is very similar to the second one, the only difference is that you’ll be with the rider(s).
The coverage is the same, 1 million liability, so everyone in the car is covered including your car and others on the road as in each type of Uber insurance coverage.
What’s going to happen in the case where you’ve been a victim of a “hit and run?”
There’s also coverage of up to $1 million liability for all occupants in your vehicle in the case you’ve been a victim of such an incident.
But, there’s no cover for your vehicle in this case. Furthermore, if you’re in an accident and the other motorist is uninsured or underinsured this coverage provided by Uber will still take effect to take care of everyone in your vehicle.
To wrap this up
It’s very important that you know how the Uber insurance policy works because you don’t want to be in an accident and know nothing about your coverage.
That’s why I’ve decided to write this article in the hope of helping anyone of you who are looking for such information.
Be careful on the roads, follow all roads’ rules, and most importantly drive safe.