Uber Insurance – How Does It Really Work?

Whether you are an Uber driver or a passenger, you should know your level of risk on the road. Uber typically does not reimburse drivers for the cost of a rental car following an accident. Therefore, the company’s default policy might not completely protect you from liability as an Uber driver.

Similarly, the amount of compensation you can receive for your injuries as a passenger may also depend on your driver’s insurance policy. Here is a brief summary of Uber’s auto insurance policy in order to better inform and safeguard people about the need for comprehensive auto insurance.

More: Can My Personal Auto Policy Cover Rental Cars?

What Is Covered in Uber Insurance?

Uber has insurance that covers drivers, passengers, and third parties. The fare differs depending on whether the driver is waiting for the fare, on the way to a pick-up, or is actively transporting a paying passenger. Uber does not provide any insurance protection unless the driver is logged on the app and starts to take fares. On the other hand, Uber insurance is far more generous with its coverage towards passengers and third parties. For instance, when a driver is waiting for a fare, Uber covers third parties who are hurt, and this involves third-party collision and comprehensive coverage.

Why Is Comprehensive Car Insurance Needed?

Comprehensive car insurance is a standalone motor insurance policy that provides complete protection for the vehicle owner. Unlike Third Party Liability Insurance (Uber), it is not mandatory to buy Comprehensive Insurance however, it is good to note that sometimes accidents can occur and that the extent of the hit and volume of damage can be massive. A comprehensive auto insurance covers –

  1.  Third-party liability– In the event of an accident, this protects the car owner from liability claims from third parties. Therefore, the insurance policy will compensate the beneficiary for their losses if a vehicle insured under this coverage is involved in an accident that results in injury to or death of a third party.

  2. Damage to your car– This policy offers extensive protection to the insured car. It safeguards your car against natural calamities, man-made disasters like theft, and also in-transit damages when your car is being transported from one place to another.

  3. Personal accident cover – This policy protects the owner/driver of the vehicle from accidental injuries and death.

Dealing with Accidents and Drivers Who Refuse to Exchange Information

Stay Safe with Pierce Insurance Group

Comprehensive auto insurance allows you to take control of the risks involved with using your own vehicle. It provides a certain peace of mind, as you will not have to pay for any expensive repair work. Do you ride your own car and are looking for affordable car insurance? Contact our team here at Pierce Insurance Group, and we will assist you.