If you drive for Uber, you will have to get car insurance for your car. To understand your insurance coverage as an Uber driver, you need to define the service. Uber is a ride-sharing service designed to compete with cabs. You, as an Uber driver, pick up your fares, however, through the customer’s smartphone app.
How Are Uber Drivers Defined?
From a business viewpoint, Uber is similar to a taxi company, as it does not own or operate the drivers’ cars. Also, drivers work as independent contractors. However, unlike a taxi driver, almost anyone can drive for Uber. The requirements for working in this capacity include securing auto insurance in Fox Lake, IL.
You need to check your personal car insurance policy, as it may list exclusions, such as working as a driver for hire. Therefore, if you are an Uber driver, you need to confirm with your insurance provider if your policy will cover this type of navigation. Make sure you find an auto insurance policy that is financially feasible that will permit you to work as an Uber driver.
What Uber Provides in Insurance Protection
Besides requiring that drivers take out insurance for their cars, Uber also provides supplemental coverage while the smartphone app is on. Therefore, when the app is not on, the Uber driver is covered by his or her own auto insurance policy. However, when the Uber app switches on, a liability coverage becomes active. This coverage is low level until a passenger accepts a ride. That is when a higher level of protection begins, and stays in force until the passenger leaves the car.
At one time, Uber only provided coverage for the time a passenger rode in a car. However, the policy had to be revised, after the company experienced a number of lawsuits from a series of accidents. If you want to know more about your own coverage as an Uber driver, contact us for all the details. Make sure you are protected when you are working in this type of job.
