Uber Updates Liability Insurance to Primary, Collision Still Secondary
[Update: Uber collision insurance is Primary, while their collision insurance (to pay out to fix the driver’s car) is secondary to your personal auto insurance policy.]
Uber updates insurance to primary coverage for liability with a $1k deductible if you get into an accident during a trip on Uber. Uber collision insurance is still secondary to your personal auto insurance.
Over the past 4 months, there have been a lot of improvements in rideshare insurance. As of two weeks ago, both Lyft and UberX’s insurance served as the secondary to your own auto policy. This means that if you get into an accident in the middle of a trip, you will need to report the accident to your personal auto insurance first. If your personal auto policy doesn’t cover it or doesn’t cover all of the damages, Lyft or Uber will cover the rest.
Last week, Lyft changed their liability policy during a Lyft to be primary (see this post for more information). However, for collision reimbursement to fix damages to your own car in the event of an accident, you would still need to go through your personal insurance first. If they deny your claim, then Lyft will cover you for collision.
Starting today, Uber has changed their liability policy during an active trip to be primary. If you get into an accident during a trip on Uber, their commercial insurance now serves as primary for liability only with a $1k deductible.
You will not need to contact your auto insurance and submit a claim to them. As long as you have liability and collision insurance with your personal auto insurance company at the time of the accident, then you will be covered by Uber’s own policy. For collision coverage (the insurance coverage to fix the driver’s car), only if your personal auto insurance denies your claim will Uber pay out your collision claim.
If you are in the middle of an active trip:
- Liability: Uber Primary
- Collision: Uber Secondary
If you are not in the middle of an active trip:
- Liability and Collision: Secondary
This is a great change in their policy. I knew that once Lyft changed their policy, Uber would respond. The only downside is the $1000 deductible, but this is a normal deductible for most auto insurance policies. I hope that this policy change will get Lyft to match as well as theirs is $2500!
Read below for more details:
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Uber is committed to connecting riders and drivers to one of the safest rides on the road. We have always carried protection that exceeds rideshare, limo and taxi standards while rideshare drivers are on Uber trips. We’re excited to announce a few updates to provide you with more peace of mind and improve your claims experience (in the unfortunate event of an accident). The policy updates for all ridesharing drivers in Boston include:
- Coverage while on an Uber trip is now expressly primary – Updated
- Claims process is streamlined – Updated
- Coverages and limits remain the same
HOW HAS THE COVERAGE BEEN UPDATED?
- From the moment you accept a trip to its conclusion, the coverage provided to rideshare partners is primary to your personal auto policy. (However it will not take precedence over any commercial auto insurance you may have for the vehicle).
- If you have comprehensive and collision coverage for your vehicle on your personal auto policy, you are covered for comprehensive and collision by simply providing evidence that this coverage was in place at the time of the accident. Our insurer will no longer require you to make a claim on your personal auto insurance in order to get this coverage. This helps you get back on the road faster.
DO I STILL NEED TO CARRY MY OWN PERSONAL INSURANCE?
- Yes. Valid personal auto insurance is required by state law to be on the road and we require it too.
- If you want coverage for damage to your vehicle, consider purchasing collision and comprehensive coverage to protect you in the event of an incident; our contingent coverage only applies if you have purchased this on your personal policy.
- If there’s an incident that your personal insurance refuses to cover while you are not on a trip, our contingent coverage for when you are logged on and available in the Uber Driver App will provide drivers with liability protection for bodily injury up to $50,000/individual/accident with a total of $100,000/accident and liability protection for property damage up to $25,000.
WHAT DO I DO IF I AM IN AN ACCIDENT?
- As soon as it is safe to do so, contact your local Uber office.
- Complete the incident report form that we provide.
- You will be provided with a claim number and an adjuster will contact you on behalf of our insurer to resolve the claim.
- If an accident occurs while on a trip, we will not require you to contact your personal auto insurer to make a claim. However we recommend that you still report the accident if your personal insurer requires that.
REMIND ME, WHAT COVERAGES ARE AVAILABLE WHILE ON A TRIP?
- $1MM of third party liability insurance covering property damage and bodily injury to others
- $1MM of uninsured / underinsured motorist bodily injury coverage
- $50,000 of contingent comprehensive and collision with a $1,000 deductible for damage to your vehicle (you must carry collision insurance on your personal auto policy to get this coverage)
HAVE MORE QUESTIONS?
Read our blog post that describes each piece of our coverage in more detail or feel free to reach out to us directly via email.
Uber Operations Team
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