Plan on driving with Uber? Here’s how it will affect your Personal Auto Insurance…



uber-logo1. Personal Auto Insurance policies do NOT cover any Uber activity. According to the companies we write personal auto insurance for–Safeco, Allied, CIG, and Progressive–no coverage is afforded to you by your auto policy for any ride sharing activity. This means you’ll need coverage through Uber when you are “Available” on the app, “En Route” to a customer, and “On Trip” with a customer.

2. Uber’s Insurance Coverage may differ from your own. When the app is turned on, and you are looking for a rider, Uber provides $50k/$100k Bodily Injury and $25k Property Damage.  If you have $100k/$300k/$100k on your underlying personal policy, you’re facing a very large gap in coverage. Once the you find a rider, the Uber policy provides $1M Liability and Uninsured Motorist Bodily Injury.

3. Physical Damage coverage is a contingent coverage. Comprehensive and Collision coverage is only offered to the driver when you are “En Route” or “On Trip” and you have Comprehensive and Collision coverage on your underlying personal policy. If you have liability only on your current policy, your vehicle will not be covered for any damage sustained while the app is turned on. Uber’s Comprehensive and Collision deductible is $1,000.

4. Preferred Insurance carriers may not insure you. Our 3 preferred carriers: Safeco, Allied, and CIG will not insure a new risk if the applicant is a ride-sharing driver. Progressive won’t issue a personal insurance policy, but can write a commercial policy to cover your vehicle.

Uber is a great service and we are lucky to have them, and other ride-sharing services, in our area. It can provide a flexible schedule, supplemental income, and a greater connection to the community. Our goal is to inform you  of how joining Uber will affect your insurance needs in the future. If you have any further questions, please give us a call today!