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Do you Need Insurance to Drive with Uber?

Do you need insurance to drive with Uber?

The quick answer: yes, you do.

And then there’s more to consider when we talk about insurance.

In this article, we’ll discuss why you need insurance to drive with Uber. We’ll also tackle important subjects such as having your own insurance provider and the considerations you should remember.

Read on!

Uber’s Insurance Requirements

To drive with Uber, you must have a sufficient level of vehicle insurance. And Uber insurance requirements include the following:

  • You must have comprehensive or third-party property damage cover.

  • You must be listed as an insured driver even if you are driving somebody else’s car.

  • Your insurance policy must display an effective and expiry date.

  • Your insurance policy must show the vehicle type, model, and registration.

Does Uber Provide Its Insurance to Its Drivers?

Uber doesn’t offer its own insurance to its drivers. However, it does offer supplemental insurance coverage.

Drivers for UberX, UberXL, and UberASSIST have a contingent liability policy that works with their personal insurance to provide more protection.

Type of Insurance You Need

The most appropriate type of insurance for Uber drivers is private hire insurance with cover for both hire and reward. Make sure your auto insurance falls under this category.

It’s also wise to have a comprehensive third party liability insurance that’s appropriate for when you hit someone or something.

Your Personal Auto Insurance Policy

Some personal auto insurance providers have exceptions for drivers for hire. If you want to drive for Uber, it’s best to check with your insurance provider if they have such an exception.

If your provider does have it, you may need to purchase another insurance policy to supplement your current insurance.

Commercial Driving Licence

Check your driving licence category. You may need a commercial driving licence.

When you drive for Uber or any other similar service, you are driving professionally. Even though Uber describes its drivers as independent contractors, some local governments will consider you as a commercial driver.

So, it’s best to check with your local authorities if you need to get one.

Keeping Your Insurance Costs Low

Since you’ll be spending money on insurance, you want to keep the costs low. The key is to do as much research as you can. You may also want to try the following:

  • Pay annually. Doing this will help you avoid the costly interests on monthly payments.

  • Install security and dashboard cameras, as well as anti-theft devices. Many insurance providers offer discounts for these car security improvements.

  • Park your car securely overnight. This will lower the risk of car theft and thus help your insurance costs.

To sum it up, if you intend to be an Uber driver while getting good insurance coverage, it’s best to be upfront with your insurance company. Tell them that you’ll be driving for hire, and find out if you need commercial insurance and a commercial driving license.

With the right type of insurance and proper knowledge, you can drive for Uber without worries about your safety and your passengers.