Understanding Uber Insurance Requirements in 5 minutes!

Let’s talk about insurance. Now, that’s something you almost never hear to start off a conversation. However, as a rideshare entrepreneur, it’s a conversation you need to have. You see, having the right rideshare insurance coverage is very important. You need to be cognizant of the risks and insurance limits in your state. For example, there are several states where there isn’t an officially recognized rideshare insurance policy!

But that’s not all…

  • Did you know that your personal automobile insurance does not cover incidents that occur when using your vehicle as a rideshare operation?
  • Did you know that your private insurance can drop you if they realize you are using your personal vehicle in a commercial capacity?

That’s just a small sample of how labyrinthine rideshare insurance can be. And without the right policy, you could easily find yourself liable for when the unexpected happens!

Uber Insurance in New York State vs. the Other States

Uber rides in New York City are regulated by the NYC Taxi and Limousine Commission. They require commercial insurance policies for each vehicle. Any accident that happens on rides originating in New York City is covered by the commercial policy maintained by the driver.

According to New York’s ridesharing laws, Uber Transportation Network Company Driver Partners (TNC Drivers) are covered by Uber’s group ridesharing insurance while connected to the Digital Network.

Uber Insurance Requirements

Let’s get into specifics here. While it may take a bit longer than five minutes, we promise it will be worth your while.

Uber’s group ridesharing insurance covers the Uber Transportation Network Company Driver Partners (TNC Drivers). However, the coverage isn’t total. It only applies during the following three periods:

  • App On: When you are waiting for a trip request.
  • Prearranged Trip: When on your way to pick up a rider and while a passenger is in your car.
  • Offline: When the UBER app is off.

Here’s where the usual questions come in:

  • How does this affect you?
  • What happens when there’s an accident?
  • How will your warranty protect you?

Let’s answer them one by one.

Uber Insurance Limits

Uber only cover rideshare drivers during Periods 2 and 3. When you’re online and waiting for a request, you have no collision coverage and much lower liability limits. You are most at risk during this period of time!

You see, if a liability claim is levied, the coverage from Uber might not be enough – and you can be left holding the bag!

Minimum Limits Are Not Enough

If you plan on driving for Uber, consider this: the more time you spend on the road, the more likely you are to have an accident. When that happens, you want the right type of Uber insurance on your side.

If you plan on driving for the rideshare industry or a taxi, the intricacies of insurance coverage can feel overwhelming. The different price points feel like money being taken directly out of your wallet. That’s why we want to help make it easier.


Do you have any other questions about rideshare insurance? Let us know in the comments!