Need a ride home from the airport? It’s easy with Uber or Lyft. Both business models entice regular drivers to enlist their own vehicles in a for-hire taxi service of sorts. Most personal auto companies prior to the Uberlution would not provide coverage while operating on a for-hire basis. The one question everybody wants to know is ‘Am I covered?’ It’s not as clear as you may think.
What Does Uber Provide?
- $1 million limit of liability per incident from the moment a driver accepts a job until its conclusion.
- $1 million uninsured/underinsured motorist bodily injury coverage which would cover injuries to all occupants of the Uber driver’s vehicle in an event an uninsured/underinsured driver causes an accident.
- Comp/collision coverage during a trip given that the driver has comp/collision on their personal policy on that vehicle.
- $50,000/$100,000/$25,000 of liability coverage between trips that pays out only if the driver’s personal auto policy declines.
Where Do the Gaps Lie?
- If you have the Uber app on, but have yet to accept a trip there is no coverage to repair your own vehicle if an accident happens. It does not go into effect until you accept a trip and will be left up to your own personal auto policy to determine whether they would cover it.
- Even though there is liability before a trip is accepted, it’s not enough. $50,000 per person for bodily injury is not very much when you think of how fast hospitals bills can add up. There’s still only a $100,000 total limit per accident for bodily injury. Even scarier is for property damage only $25,000 there to repair the vehicle or property. Don’t hit a luxury car whatever you do!
- Most personal auto policies will specifically exclude coverage for commercial activities, like using your vehicle as a taxi. Some companies have opted out of anything involving Uber or Lyft all together. In other words, if you try to secure a quote and disclose that you’re an Uber driver, some companies will not provide a quote because they are not willing to a take a risk on commercial activities. If it’s not disclosed, then those activities would be excluded.
It’s important to check your policy. Each is different. If you have questions regarding your insurance, ECI is always here. Contact us for a Oklahoma City auto insurance quote.