Services like Uber have been popular for several years, and when unemployment rates rise, you may consider signing up as a driver to earn some extra money. You may besides wonder about the implications when it comes to your car policy and who would pay in the event of an accident. Read on to learn what steps you may have to take to avoid any insurance-related surprises while driving for Uber .
What is Uber?
Uber is a ridesharing overhaul ( sometimes referred to as “ ride hailing ” ) that competes with taxis and black car companies. Passengers hail an Uber from a smartphone app and dress for a car to pick them up, often for less than the cost of a traditional taxi .
While Uber has a number of commercially licensed black car services, it besides has a product called UberX, which allows local drivers to respond to notifications on the Uber app by driving customers in their own ( non-luxury ) cars.

Unlike traditional taxi medallion companies, about anyone can drive for UberX and competitors like Lyft and Via. In some states, the entirely requirements for UberX drivers are car indemnity, allow senesce, health, completion of a drive test and passing a background check.1
Driving for UberX Could Invalidate your Personal Auto Insurance Policy
Your personal car insurance policy may not provide coverage for you while driving for a service like UberX. This is because personal car insurance policies have a number of exclusions, and they much include “ driving-for-hire. ” If you are driving for UberX or a exchangeable military service, you should check with your indemnity company to confirm whether your policy covers this “ commercial driving. ” If it does not, you will want to consider purchasing supplementary commercial car indemnity, though for many half-time drivers, this may not be financially feasible.2
Uber Provides (Some) Auto Insurance Coverage… When the App is On
Uber requires all their drivers to have car policy, and provides auxiliary policy coverage, but entirely while the app is on. here ’ s how it works : When the Uber app is away, a driver is covered by their own personal car policy. When the Uber app is turned on, a moo grade of indebtedness policy becomes active. When a trip is accepted, a higher tied of coverage kicks in and remains active until the passenger exits the fomite. previously, Uber driver insurance had only offered coverage when a passenger was in the car, but the company has since updated their policy .
Lyft and some of the other ridesharing services point to the $ 1 million per incident excess liability coverage that certain states require them to carry. The policies are designed to deal with liability claims, which a driver ’ sulfur insurance doesn ’ metric ton embrace. But these policies won ’ thyroxine cover a driver ’ second car – you must rely on your own personal car insurance policy.3

Compare Quotes From Top-Rated Insurance Companies

Zip Code

Please enter a valid zip code

Are you currently insured?

Artboard 1@1x
Created with Sketch.

Please complete this field

call : 1-800-258-5101
UberX Drivers May Also Need A Commercial Driver’s License
If you drive for UberX or a similar service, whenever you pick up a passenger, you are driving professionally. even though you are an independent contractile organ, some states will consider you to be a commercial driver. While each state ’ mho laws are different, UberX and Lyft drivers should be aware that your state may require you to have a commercial driver ’ second license. ( eminence : Some states only require drivers to have a commercial license if they drive as a full-time occupation. ) check mark with your state ’ randomness DMV for its requirements .
several insurance companies have recently created extra coverage options specifically for drivers of Uber and Lyft, which are available in all 50 states.

In the end, if you ’ re looking to start driving for Uber, your best bet is to be upfront with your indemnity company about the fact that you ’ ll be “ driving-for-hire, ” find out if you need commercial indemnity and find out if you need a commercial driver ’ sulfur license.4
In the meanwhile, give us a call at ( 800 ) 258-5101 to find the car policy policy that best fits your driving needs. And you can constantly get an Uber driver ’ mho policy quote at .

Leave a Reply

Your email address will not be published. Required fields are marked *