As ride-share driving for Uber, Lyft, or other has become more popular,
it is important to understand the insurance coverage that applies when
you are at work behind the wheel.
Coverage may vary widely between ride-share companies and ride-share drivers
should carefully check the rider share company’s website to read
about the insurance coverage provided. All ride-share companies provide
liability coverage when you are on the app. Liability coverage protects
every other driver on the road against mistakes you make behind the wheel
that cause an accident. This coverage protects the ride-share company
more than it protects you. However, some ride-share companies also carry
insurance that protects those in the ride-share vehicle (driver and passengers)
in the event that another driver on the road makes a mistake and hurts
you. This may include uninsured and under-insured motorist coverage (in
case the other driver has no insurance or not enough insurance to properly
compensate you), collision coverage (to fix your vehicle), medical payments
coverage (to pay bills if you have to see a doctor), and disability coverage
(to make up lost earnings if you can’t work because of an injury
or while your vehicle is in the shop).
Many ride-share drivers will be surprised to learn that their coverage
varies widely between ride-share companies and also depending on app status.
For example, Uber has four app status classifications for drivers:
- App On: While you are waiting for a request
- Request Accepted: On your way to pick up a rider
- On Trip: While a rider is in your vehicle
- Offline: When driving your car for personal use
Uber’s insurance coverage varies based on these four classifications.
It is important to remember you are NOT covered by Uber’s insurance
policy when you are offline and not driving on the Uber platform. Also,
you may have liability protection ONLY unless you are on your way to pick
up a rider or while a rider is in your vehicle.
Remember, you must also tell your personal auto insurance company that
you are driving for a ride-share company or they may deny your claim in
the event of an accident.
For more information on Uber’s coverages go to: