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If you often ride in an Uber, are an Uber driver, or are considering becoming one, it’s important to understand the Uber driver insurance requirements. Rideshare drivers need to have the right type and amount of insurance coverage to protect themselves, their passengers, and their vehicle in case of a rideshare accident.
Drivers must have a personal auto insurance policy that meets Arizona’s minimum requirements, as well as additional coverage required for rideshare driving
These requirements include:
Uber drivers in Phoenix are required to have liability coverage that meets or exceeds the following minimum limits:
Arizona law does not require all drivers to carry uninsured/underinsured motorist coverage, but it is often included or required under rideshare policies and strongly recommended. This coverage protects the driver and passengers in case you are involved in an accident with a driver who doesn’t have insurance or doesn’t have enough insurance to cover the damages.
While not required in Arizona, it’s highly recommended for Uber drivers to carry Personal Injury Protection (PIP) or Medical Payments Coverage. PIP or Medical Payments Coverage provides medical coverage for you and your passengers regardless of who is at fault in an accident, which can be especially helpful in covering medical expenses for injuries sustained in a car accident.
In addition to personal auto insurance, Uber provides commercial coverage to drivers that varies depending on what stage of the ride they are in.
During this period (called Period 1), when the Uber app is on, but the driver has not accepted a ride and is not carrying passengers, Uber provides coverage as follows:
This coverage may be secondary, depending on the driver’s personal policy, which is why many drivers carry a TNC endorsement to avoid coverage gaps. This means that the driver’s insurance will be the first used to cover any damages in case of an accident. Uber’s insurance will only come into play if the driver’s insurance does not cover the damages.
During Period 2, when the driver has accepted a ride and is on the way to pick up passengers, and Period 3, when the Uber driver has passengers in the car, Uber provides the following coverage:
This coverage provided by Uber becomes primary, covering any damages before your insurance is tapped into. Uber’s coverage is in effect until the passengers are dropped off and the app completes the ride.
It’s important to note that Uber’s commercial insurance coverage only applies to accidents while providing rideshare services. Any accidents occurring when a driver is not actively using the Uber app or when the app is off generally would not be covered by Uber’s commercial insurance and would fall under their auto insurance policy.
Apart from the insurance policy requirements mandated by Uber, there are a few other important considerations for Uber drivers in Phoenix to ensure they have adequate coverage:
Since Uber’s coverage during Periods 2 and 3 relies on having personal comprehensive and collision coverage, there may be a gap in coverage if your personal insurance doesn’t cover the total value of your vehicle. Gap insurance does not replace rideshare coverage but can help cover the difference between your vehicle’s value and what you owe if your car is totaled.
Some insurance companies offer a Transportation Network Company (TNC) endorsement designed explicitly for rideshare drivers. This endorsement extends your auto insurance policy to cover you while driving for Uber, filling any gaps in coverage during Period 1.
It’s crucial to regularly review and update your insurance coverage as your rideshare driving activities may change over time. Make sure to inform your insurance provider that you are driving for Uber and update your coverage accordingly to ensure you have the appropriate protection.
Whether you’re a passenger or driver, you should consult with an attorney and an insurance provider to fully understand the legal requirements and insurance coverage for rideshare drivers to avoid any potential coverage gaps or surprises in case of an Uber accident.
Remember, having the right insurance coverage is crucial to protect drivers, passengers, and vehicles in case of an unexpected event on the road. Drive safely, and make sure you have the appropriate insurance coverage for riding and driving confidently using Uber in Phoenix. Call Desert Star Law Group at (602) 686-9936 today to schedule a consultation with an experienced attorney.
