There is still a lot of confusion when it comes to insurance policy for Uber drivers. If you are a driver working for Uber, the app is on and you’re still waiting to be match with a passenger but you suddenly got into an accident. Are you covered?
The answer is yes and no. There is still a lot of gray areas to which insurance will cover the accident. A new law that took effect last July 1st (CA Bill AB 2293) states that personal insurance providers will not cover any accidents that happens when drivers are logged into ridesharing apps. As this is happening, Uber is trying to update most of their insurance coverage. They now cover pre-ride period — dubbed as Period 1, which will provide primary coverage for third-party liability. That’s good news, but the policy also leaves many drivers partially uncovered. The new insurance is for liability only and doesn’t cover collision or other damages to the driver’s car and their own medical bills are not included if the accident is their fault although the companies’ policies cover passengers. As these new policies and changes is taking effect, drivers are encouraged to consider obtaining rideshare-specific insurance to cover the gap.
Farmers have announced a new Uber insurance as a supplement – called an endorsement, to driver’s personal auto policies, and will cost at around 8% additional to their premium. For more details about your specific quote, please contact Gino at 888.535.0110 or contact us via email.