There Are 3 Stages to Uber... Which One Leaves You With Less Insurance?
Anyone working as a driver through Uber should purchase the insurance Uber provides, no doubt. But what does it actually cover? As described on On Uber's website, drivers have coverage whenever they have a passenger. Great. What about the periods of time drivers have logged into their app but aren't carrying passengers, like the beginning of a shift or after dropping off a passenger? Uber offers "50/100/25" insurance, and it only pays if a driver's personal auto insurance doesn't (and it often won't because being logged into the app with an "available" status can be considered business use, which is excluded on personal auto insurance).
What is 50/100/25? Add dollar signs and zeros and it makes more sense: $50,000/$100,000/$25,000. The first number, $50,000, means that the insurance pays for bodily injuries for any one person up to $50,000. It looks great, but everyone knows how easy it is to rack up that much money in medical bills, especially after an accident. The second number means that no more than $100,000 will be paid for bodily injuries in any one accident, so if a driver hits a family of four, hopefully no person sustains more than $50,000 in injuries, and total injuries, including death, don't surpass $100,000.
No problem, right? The last number, $25,000, pays for property damage - damage to cars, buildings, or other property. Just look around a parking lot - how many vehicles are worth more than that? A new SUV or truck can easily run $50,000 or more, so repairs exceeding $25,000 can't be ruled out.
Remember, we're talking about the insurance Uber provides while drivers are logged into the app but aren't carrying passengers. The kicker? Liability insurance doesn't pay for your injuries or damage to your car; it only pays for others' injuries/damages for which you are at fault. That means the 50/100/25 limits leave drivers high and dry if they're injured or their car is damaged, and their personal auto insurance probably won't pay, even if you carry full coverage (comprehensive/collision).
Anyone driving for Uber should not only purchase Uber's insurance, but also contact their personal auto insurance agent or carrier to verify whether or not coverage applies, and if not, whether a ride-sharing endorsement can be put on the policy.