Do I need different car insurance as an Uber driver?


Save Money by Comparing Insurance Quotes
Compare Free Insurance Quotes Instantly
ZIP Code must be filled out!
 Secured with SHA-256 Encryption
writter logo
Written by
Director of Content
reviewer logo
Reviewed by
Farmers CSR for 4 Years
UPDATED: 2020-02-18T16:45:53.677Z
Advertiser Disclosure

It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider.

Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

A driver holding a phone with the Uber app open.

Have you ever been sitting in the back seat of an Uber and wondered, ‘What’s it like to be an Uber driver?’ The flexible schedule has been a draw for many to join the company.

But if you’re among the population considering driving for Uber — or already are — it’s important to consider the car insurance implications. After all, you’re no longer just driving for personal use.

From a driver’s perspective, there are three different stages once the Uber app is turned on. It’s important to understand the difference between these three stages, and how insurance coverage works in each situation. Before the Uber app is even turned on, drivers should confirm with their insurance company that their personal auto policy continues to provide coverage despite becoming an Uber driver.

Do you also drive for Lyft? We've got everything you need to know about Lyft insurance.

Stage 1: App is on while waiting for a rider request

During this period, Uber only covers you for your liability to a third party if you’re in an accident and you’re at fault. This means Uber would provide limited coverage for an injury to somebody else or damage to another object, such as their vehicle.

However, in the event you’re injured or your car is damaged during this time (e.g. a collision with another vehicle or object), Uber would not cover these costs. This presents an issue because you may not be covered by your personal auto policy while the app is on even though you aren’t driving to a pickup point or driving with any riders.

So how do you prevent this lapse in coverage for the first stage? Many auto insurance companies now offer a specific ridesharing policy that covers policyholders for both personal and rideshare use at the same time. It’s worth noting, though, this will result in a more expensive premium that varies based on the company.

Stage 2: Uber driver accepted a request, driving to the rider & Stage 3: Driving rider to their destination — how is car insurance affected?

As far as Uber is concerned, these stages are the same for insurance purposes. During these instances, Uber provides extensive third party liability coverage, uninsured and underinsured motorist coverage, as well as collision and comprehensive coverage. Additionally, there’s a $1,000 deductible with the collision and comprehensive coverage.

Some insurance companies’ ridesharing policies offer separate coverage for all three stages, which could lower your deductible in these instances. For example, if you have a $250 or $500 deductible on your own policy that covers stages two and three, you can submit your claim after an accident through your own carrier rather than Uber, which has a $1,000 deductible.

Be aware, Uber’s coverage doesn’t apply in all cities and states. In certain locations, such as New York City, Uber drivers must be licensed and insured to drive commercially — a much pricier policy than personal auto or ridesharing. With states and insurance companies having different rules and regulations for driving for a ridesharing service, it’s important for drivers to call their current auto insurance company to let them know they plan to begin working for Uber.

See which car insurance companies are ranked the best insurance for Uber drivers.


The content on this site is offered only as a public service to the web community and does not constitute solicitation or provision of legal advice. This site should not be used as a substitute for obtaining legal advice from an insurance company or an attorney licensed or authorized to practice in your jurisdiction. You should always consult a suitably qualified attorney regarding any specific legal problem or matter. The comments and opinions expressed on this site are of the individual author and may not reflect the opinions of the insurance company or any individual attorney.

Editorial Guidelines: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider.
Save Money by Comparing Insurance Quotes
Compare Free Insurance Quotes Instantly
ZIP Code must be filled out!
 Secured with SHA-256 Encryption