Driving for Uber has become incredibly popular over the past few years. With the popularity comes a few risks associated with it. One question that comes to mind when it comes to driving for Uber is an important one to think about. What does the company offer in terms of auto insurance while I am driving for them?
This is a serious question to consider before beginning to drive with them in case you are in an accident while “on the clock”. Let’s look into what your options are in terms of auto insurance for Uber and what they do in terms of supplemental insurance, shall we?
Am I Actually an Employee or Independent Contractor?
This is a question that is hard to answer when it comes to driving for Uber. Uber wants to clearly say that its drivers are independent contractors instead of employees. The company will give its drivers a 1099 form each year, which means they consider their drivers to be independent drivers. This form is not admissible in courts of law if you take them to court for an accident.
This makes it difficult if you want to take them to court for a workers’ comp case if you wanted to get money for damages. Uber will claim that since the drivers have the ability to work whenever they want, they have no control over them. This is why they consider drivers to be independent contractors instead of your typical employees.
The Exclusion of Your Personal Auto Insurance
There is a problem with driving for Uber when it comes to your personal auto insurance. If you look closely into the terms of your insurance policy, most do not want you “driving for hire”. This means that if you are driving for Uber, you will be excluded from using your personal auto insurance if you get into an accident. This means that having a supplemental insurance plan for your vehicle while driving for Uber is so important for you.
For most drivers out there, the exclusion will mean that you need the supplemental insurance. This means that you may need to purchase a second auto insurance plan, which is not financially feasible for a lot of drivers on the road. You will need to check with your auto insurance carrier to see if this applies to you when driving for Uber or even Lyft.
What Uber Actually Covers
Uber recently changed their policy recently after a series of accidents that resulted in lawsuits. It now requires you to have auto insurance and does offer supplemental insurance. However they will only cover you while you have the app loaded on your mobile device. If you get into an accident while the app is not loaded on your device, you will not be covered by the supplemental insurance.
When the customer is accepted, a higher level of insurance will kick in and it remains active until the passenger leaves your vehicle. When you do not have the app loaded on your mobile device, your personal auto insurance is covering you and your vehicle.
Greenville and Washington, NC Auto Accident Attorneys
I’m Brian Ricci, a Car Accident Lawyer serving Greenville, NC and the surrounding areas. If you have suffered a personal injury due to a car crash, please call me anytime at (252) 777-2222 or (800) 387-6406 for free, friendly advice. The call is free and there is no obligation to you.
I am a longtime member of the Million Dollar Advocates Forum.