RideShare & Uber Driver Insurance

Uber insurance is a hotly contested issue right now. The landscape is also quickly changing and evolving across the country. Learn about legal requirements, changes and more for Uber driver insurance.

Understanding the world of insurance for Uber drivers and other ride-sharing cars and services

If you're like millions of Americans, then you've ridden in an Uber before. Maybe even in a Lyft, or one of a growing number of competitors. The taxi-alternative and ridesharing companies are increasingly popular, but the field is also increasingly in flux. Perhaps the most key way in which there's concern today is the state of Uber insurance requirements, needs and legislation. Here, you'll learn more about what's happening right now, and what it all really means.

Taxis vs. Uber and the Changing Landscape

Uber changed the way that people could find a ride from point A to point B. Simply by pulling our their smartphones, they could virtually hail themselves a cab, and know exactly how long it would be until it arrived. They could also pay through the app, eliminating the need to have cash or worry about calculating any tips.

UberX brought on the ability for essentially anyone with a vehicle to become an Uber ridesharing driver. They'd earn extra cash, whether it was their main source of income, or a part-time or temprorray gig, while riders would receive cheaper-than-taxicab rates.

Taxi cab companies have complained, in turn, that they have to deal with extra regulation, licensing fees, insurance requirements and much more, which leaves their traditional business model unfairly handicapped compared to the currently free-running ridesharing providers.

From the Washington, D.C. metro area to Portland, Oregon, down to Palm Beach County, Florida, and in many other places, there are ongoing fights for Uber usage. Taxicab companies and drivers, city, county and state governments, citizens, and the ridesharing companies themselves, are all battling for their interests.

Legislation

The state of California passed legislation in 2014, not in full effect until summer 2015, that requires ridesharing drivers to carry certain levels of commercial insurance. The specifics include $50,000 per injury up to $100,000, and up to $30,000 in property damage when the passenger is not in the vehicle, i.e., the driver is on the way to pick him or her up.

This represents a major change, but also reflects the likely truth of the situation, that both drivers and passengers have been more inadequately protected via insurance than they would have thought.

Still, the difference in how Uber views insurance, what it means for the driver, and how the law is beginning to define it, is very muchat odds and up in the air.

Once the passenger is actually in the car, ridesharing providers such as Uber increase the insurance they are providing up to $1 million. However, that period of time when the driver is en route to a passenger they are otherwise left with only their personal insurance.

Colorado is another state which has passed legislation for what is known as TNCs, or transportation network companies.

Other states are likely to pass their own legislation, and as already mentioned, this is an evolving landscape and it's rapidly changing.

Company Policies

Different ridesharing companies have different insurance coverage plans and policies. For instance, UberX breaks down theirs into three different statuses:

• When the Uber app is off, a driver is on his or her personal auto policy.
• When the Uber app is on, and they are logged on and available but without passenger, the driver is on his or her personal auto policy plus contingent liability coverage up to $50,000 per injury, $100,000 total, and with $25,000 property damage.
• During the trip, with the passenger in the car, Uber's commercial insurance coverage kicks in with $1 million for 3rd party liability, $1 million for underinsured or uninsured motorist coverage, and a contingent collision and comprehensive coverage with a $1,000 deductible

You can find a state by state listing of certificates of insurance on their official website.

Questions to Ask

Still unsure of what you need, or how it affects you? Ask these questions and conduct some research:

• What are my state, local and county laws and regulations?
• What bills or legislation are currently being discussed?
• Does Uber or Lyft or any other company provide me with the insurance I'm required to have, or do I need my own commercial policy?
• What does your personal auto policy have to say about accidents as the driver or passenger of a ridesharing vehicle?

Other Unique Commercial Vehicles & Trends

When it comes to ridesharing companies, Uber is far from the only player in the game, even if they remain by far the most widely used. There are also direct competitors, and services such as Lyft, Sidecar and Wingz.

Then, you have ridesharing rentals such as Zipcar, which come with their own confusing insurance requirements and options. Zipcar drivers have found themselves in a similar struggle, not fully protected by the company's insurance, but with a personal policy which doesn't accurately or fully kick in, either.

Elsewhere, different commercial vehicles are also evolving. For instance, take the case of food trucks, which are now exceedingly popular all across the country. Food trucks have quite different needs than any other type of vehicle on the road, and specialty insurance packages need to be put together to cover those risks and the vehicle's usages.

For all of the above situations, and any new commercial vehicle or trend, it's of the utmost important to stay fully up to date and aware of any legislation and other requirements.

The best way to learn more is by speaking with an informed commercial auto insurance expert in your local area. Beyond that, if you have any other questions or comments, feel free to join the conversation below.