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Does Uber Insurance Cover Passengers?

  • Auto Insurance
  • Xavier Sabastian
  • 5 minutes

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Yes is the short answer. Drivers, passengers, and third parties are all covered by Uber insurance. In addition, both ridesharing firms offer varying degrees of coverage when a driver is waiting for a fare, on the way to pick up a ride, or actively transporting a paying passenger. 

Uber provides significantly more comprehensive insurance coverage to passengers and third parties than their drivers.

Uber Insurance Passengers

Does Uber Insurance cover passengers?

When a driver is waiting for a fare, Uber covers third parties who are hurt.¬†When using the app and waiting for a ride, drivers are not covered by either company’s insurance. However, when a driver accepts a ride request, higher coverage kicks in; at this point. Uber has insurance that protects both drivers and third parties.¬†

After a driver picks up a paying passenger, Uber provides third-party, collision, and comprehensive coverage.

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What should you know about Uber Insurance Policy?

It is critical to be aware of your level of risk on the road, whether you are an Uber driver or a passenger. Uber’s default policy may not be sufficient to insulate you from liability as a driver entirely. In addition, your driver’s insurance coverage may impact how much you can collect for your injuries as a passenger. The following is a quick rundown of Uber’s auto insurance strategy to inform better and protect individuals in both the driver and passenger seats.

After an accident, Uber will not compensate drivers for rental car costs.

Uber Insurance Policy:

Insurers formerly linked Uber drivers to taxi drivers, forcing them to obtain additional coverage and a commercial insurance policy classified as a commercial risk. However, this made no sense to most Uber drivers. The majority of Uber drivers use the service to complement their main source of income rather than as a full-time profession. 

The plan’s basic structure is as follows for your convenience:

Driver Activity Automatic Uber Coverage
Uber driver is offline Personal insurance coverage is in effect.
Uber driver is logged into the app and available to accept rides
  • Statutory Accident Benefits
  • Uninsured Motorist Coverage
  • Third-Party Liability Coverage with limits of $1 million;
  • Family Protection Coverage (OPCF 44R) with a limit of $1 million
  • Collision and Comprehensive Coverages with a $1,000 deductible
Uber driver accepts ride requests and is on the way to pick up a passenger.
  • Statutory Accident Benefits
  • Uninsured Motorist Coverage
  • Third-Party Liability Coverage with a limit of $2 million
  • Family Protection Coverage (OPCF 44R) with a limit of $2 million
  • Collision and Comprehensive Coverages with a $1,000 deductible
Uber drivers is transporting passengers to their destination.
  • Statutory Accident Benefits
  • Uninsured Motorist Coverage
  • Third-Party Liability Coverage with a limit of $2 million
  • Family Protection Coverage (OPCF 44R) with a limit of $2 million
  • Collision and Comprehensive Coverages with a $1,000 deductible

What does Uber require from its drivers?

What does Uber require from its drivers?

Uber requires drivers to have the bare minimum of insurance coverage in their respective states. Nothing stops harmed third parties from pursuing redress through the driver’s insurance coverage.

Because Uber provides less extensive coverage for drivers than customers and third parties, rideshare drivers must have adequate personal car insurance. Both firms’ comprehensive and collision insurance is only valid if the motorist has similar personal coverage.¬†

After an accident, Uber will not reimburse drivers who do not have a personal collision and comprehensive insurance policy for expenses linked to car repair or replacement. It’s also critical to have a specific personal insurance policy for rideshare drivers. Many insurance companies specifically exclude ridesharing from their policies.

How does Uber Insurance work?

You will be covered automatically while you are logged into the Uber app. You should not anticipate your Uber insurance to replace your regular car insurance as an Uber driver. Uber’s automatic coverage is primarily intended to cover liability claims not covered by a driver’s insurance. Certain sections of the Uber policy may not apply if you do not have personal auto insurance.

Although Collision and Comprehensive Coverage is included in Uber’s standard plan, it is only valid if Uber drivers also have the same coverage on their personal auto insurance policy. So, unfortunately, if your car is damaged while you’re using Uber, you won’t be covered unless you have personal auto insurance.

Uninsured Motorists and accidents with Uber

As soon as they take a ride, Uber drivers are covered by uninsured and underinsured motorist coverage. The maximum amount per accident is $1 million. The maximum possible amount of $200 million would have to be pro-rated or divided among all afflicted passengers.

Importance of Commercial Auto Insurance

Importance of Commercial Auto Insurance

If the exclusions in an Uber driver’s insurance policy preclude them from collecting damages due to physical injury or property damage, and Uber’s automatic plan policy is insufficient, commercial auto insurance would apply. In addition, many insurance providers now provide “personal coverage for ridesharing drivers,” a type of commercial motor insurance targeted specifically to Uber drivers.

Both Uber drivers and passengers should check into the many types of commercial auto insurance available to them so that everyone is protected in the case of an accident.

Uber’s passenger insurance coverage varies drastically from country to country, making international travel difficult for users. For example, passengers in the United States are eligible for up to $1,000,000 in claims.

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