Understanding Uber’s $1 Million Insurance Policy

Blog,Ridesharing • October 7, 2020

Any qualified New Jersey Uber accident lawyer will know that Uber has a $1 million rideshare insurance policy in the event of an accident. The personal auto insurance policy of the driver is not in play when he or she is driving for Uber. In fact, most auto insurance companies consider driving for Uber as a commercial activity, meaning that it will be exempt from coverage. That is why it is important to understand how Uber’s insurance policy works. 

When Is the $1 Million Rideshare Insurance Policy Applied?

Rideshare drivers have a given level of insurance coverage provided by the rideshare company after they have joined the company. The insurance policy covers driver activity at the time of an Uber accident in New Jersey. 

When the driver is operating their vehicle for personal reasons and not available to accept rides on the rideshare app, then Uber’s policy is not in play, and instead, the personal policy of the driver is in effect. 

If the driver is available on the Uber app and is not transporting a rider at the time of a crash, the primary insurance will be the driver’s personal policy, but the ridesharing company offers additional coverage for liability up to $50,000 for each injury at a maximum of $100,000. The company’s insurance policy will also cover a maximum of $25,000 in property damage. 

When the rideshare driver is transporting a passenger at the time of an accident, that is when the $1million insurance policy is in effect. Both the driver and rideshare passenger are covered by the liability insurance policy. If a third party is injured in the crash, they are also covered under the policy. 

Cost of Uber Driver Insurance

Understanding Uber’s $1 Million Insurance PolicyThe driver insurance provided by Uber is inexpensive, and it is worth every penny. The cost of the policy from a private insurance provider is around $6 to $20 per month, and this depends on the courage amount, which can be impacted by the city you are driving in, the provider of the policy, and other factors. 

Drivers can also choose to apply for commercial insurance that offers more protection for drivers when they are using the Uber app. Commercial insurance is recommended for high-end vehicles, such as UberSUV and UberLUX. This type of policy is more expensive than the standard rideshare policy, but it offers increased coverage for the driver. 

New Jersey Rideshare Accidents

Those who are injured in a crash involving a rideshare vehicle should consult with an Uber/Lyft crash lawyer in New Jersey immediately in order to better understand their legal options. The legal team at Brady Reilly & Cardoso, LLC is here to help you make sure that your case is treated fairly and that the liable driver is held accountable for his or her actions. We will fight to make sure that you recover the compensation you deserve so that your life can get back on track. Contact our New Jersey rideshare crash attorneys today at (201) 997- 0030 if you or a loved one has been unfairly injured in a crash involving a rideshare driver.