If you are like most people, you regularly call for an Uber instead of a taxi whenever you need to go somewhere and you cannot or do not wish to drive. While this saves you money, however, will Uber’s vaunted $1 million insurance policy actually pay for your injuries should your driver have an accident?
Unfortunately, according to Insurance.com, the answer is not necessarily. To begin with, Uber drivers must purchase Uber’s “driver-partner insurance,” and few of them do.
When Uber insurance applies
Even assuming your driver purchased an Uber insurance policy, it’s coverage only kicks in if the following conditions also apply:
- Your driver caused the accident in which you sustained injuries.
- He or she purchased a commercial auto insurance policy in addition to the Uber policy.
- This policy already covered your injuries up to its limit.
Uninsured motorist coverage
Uber includes uninsured motorist coverage as part of its “driver-partner insurance,” but again, this coverage only applies in the limited situations in which at least two of the following occurred:
- The other driver, not yours, caused the accident.
- He or she either had no insurance at all or his or her policy was inadequate to cover your injuries.
- No one knows the other driver’s identity because he or she either committed a hit and run or left the accident scene before you or your driver could ascertain his or her identity.
When your Uber driver picks you up, be sure to ask him or her about the type of insurance coverage he or she has before you get in the car. If the answers indicate a problem, you may well wish to engage a different driver with adequate commercial plus Uber insurance coverage.