Uber is a transportation company that allow drivers to utilize their personal cars to drive customers. It’s like a taxi service except instead of hailing a cab from the side of the street or calling a number, customers can call for an Uber car through an app on their phone.
It’s convenient for the riders and also a convenient way for anyone with a car to make some extra cash. However there are some specific requirements to become a driver and specific requirements for insurance.
Here are the requirements to drive for Uber:
– You need a car that is either 2000 or newer 2005 or newer, depending on your city.
– You need to pass a background check
– You need to have a personal license and registration
– You need to be at least 21 years old
What kind of auto insurance does Uber provide drivers?
Uber does provide drivers with auto insurance liability coverage when the Uber app is on in your phone and while you are driving clients, but there may be some gaps in your personal auto insurance that you aren’t aware of. Here are a few things you need to know:
Personal Insurance may not provide coverage while driving for Uber
- Many private car insurance policies state that they will not cover any accidents that happen while you are driving for pay. Be sure to check with your insurance agent regarding what your policy covers. Every auto insurance policy has a list of exclusions they will not cover, some of which include driving for hire.
- If personal insurance excludes driving for hire, the driver will have no personal car insurance if he or she gets into an accident while driving for Uber. If your personal insurance excludes driving for hire, you will need to purchase additional commercial driver’s insurance to cover this gap. While Uber does provide liability coverage, it is very particular and doesn’t cover all possible incidents.
- Depending on the state you live in, Uber drivers may need a commercial driver’s license. Every state is different and may require Uber drivers to get a commercial driver’s license. This is important because if your state requires you to have a commercial driver’s license and you do not have one, you could be subject to prosecution if you get into an accident.
Before driving for Uber, check that you have the right car insurance and driver requirements for your state.
Earning extra cash by driving for Uber is great, but check with your insurance agent to see if there are any potential gaps in your car insurance coverage.
There is nothing worse than getting in an accident and learning after the fact that you don’t have sufficient car insurance. Any uncovered costs would come out of your pocket and that is one surprise you don’t want to get hit with!