What insurance you need to drive for Uber
Uber requires you to carry commercial auto insurance or a rideshare-specific policy before you can drive on the platform. Your personal auto insurance will not cover you while you are logged into the Uber app and accepting rides, even if you have not picked up a passenger yet. This gap exists because personal policies exclude commercial use of your vehicle.
Uber itself provides some coverage, but only after a passenger is in your car. The company's insurance covers liability (damage to other people or their property) and uninsured motorist protection, but it does not cover damage to your own vehicle, medical payments, or collision. You are responsible for that part of the risk from the moment you turn on the app.
The practical result: you need your own policy that covers the period when you are logged in but have not yet picked up a ride. This is called the "waiting period," and it is the most dangerous gap in coverage for Uber drivers.
Key Takeaways
- Personal auto insurance does not cover you while you are logged into Uber, even if you have not accepted a ride yet.
- Uber's insurance covers liability and uninsured motorist claims only after a passenger is in your vehicle, leaving you unprotected during the waiting period.
- You can close this gap by buying a rideshare-specific policy, adding a commercial endorsement to your personal policy, or switching to a commercial auto policy.
- Rideshare policies are usually cheaper than full commercial policies and are designed specifically for drivers who work part-time for platforms like Uber.
- Your personal insurer may cancel your policy if they discover you are driving for Uber without disclosure, so you must tell them about your driving activity.
How Uber's insurance coverage works
Uber provides three levels of coverage depending on where you are in the pickup process. The first level — when you are logged in but have not accepted a ride — is covered only by your own policy. Uber's coverage does not start until you have accepted a ride request.
Once you accept a ride, Uber's insurance covers liability up to $1 million (the amount varies by state and has changed over time, so check Uber's current policy). This covers damage you cause to other vehicles, property, or people. It also covers uninsured and underinsured motorist protection, which pays for your injuries if someone without adequate insurance hits you.
Uber's coverage does not include collision (damage to your own car from an accident), comprehensive (theft, weather, vandalism), or medical payments for you. If you cause an accident and damage your own vehicle, you are responsible for that cost unless your personal policy covers it. Many drivers assume Uber will pay for their car damage and discover too late that it will not.
Types of insurance policies that cover rideshare driving
You have three main options to close the coverage gap. The cheapest and most common is a rideshare endorsement or rideshare policy, which you add to your existing personal auto insurance. Companies like Allstate, State Farm, Geico, and others now offer these. They typically cost $10 to $25 per month and cover you during the waiting period when you are logged in but have not accepted a ride.
A commercial auto policy is a full business insurance product that covers all your driving activity, whether you are working or not. It is more expensive than a rideshare endorsement — often $50 to $150 per month or more — but it provides broader protection and does not require you to switch back and forth between personal and commercial coverage. Some drivers use this if they also do delivery work or other commercial driving.
A standalone rideshare policy is a middle ground: it is a separate policy designed only for rideshare drivers, not an add-on to your personal insurance. Companies like Stride Health and Rideshare Hub offer these. They cover the waiting period and sometimes offer better rates than commercial policies, but you will be managing two policies instead of one.
Some drivers try to use only Uber's coverage and skip buying their own policy. This is a serious financial risk. If you cause an accident during the waiting period, your personal insurer will likely deny the claim because you were using the car for commercial purposes. You would then be personally liable for all damages, which can easily exceed $100,000.
What to tell your personal insurer
You must disclose to your personal auto insurer that you drive for Uber. If you do not and they discover it later, they can cancel your policy and deny any claims related to your driving activity. This is not a technicality — it is a condition of your insurance contract.
When you call your insurer, tell them you drive for Uber and ask what options they offer. Some will sell you a rideshare endorsement. Others will tell you they do not cover rideshare driving and you need to buy a separate policy. A few may decline to insure you at all, though this is less common now that rideshare driving is widespread.
If your current insurer will not cover you, you can switch to one that does. Many insurers now actively market rideshare coverage because it is profitable and attracts younger drivers. Getting quotes from three or four companies takes about 20 minutes and can save you money compared to staying with an insurer that charges more or offers less coverage.
Collision and comprehensive coverage for your own vehicle
Rideshare endorsements and Uber's coverage do not pay for damage to your own car. If you are in an accident, you need your own collision insurance to cover the repair or replacement cost. This is separate from liability insurance, which covers damage you cause to other people's property.
Collision insurance has a deductible — usually $500 to $1,000 — that you pay out of pocket before the insurance pays the rest. Comprehensive insurance covers theft, weather, vandalism, and other non-collision damage. If you have a loan or lease on your car, your lender will require you to carry both collision and comprehensive.
When you add a rideshare endorsement, make sure your collision and comprehensive coverage stays in place. Some drivers drop these to save money, then regret it after an accident. The math usually does not work: the money you save by dropping collision is quickly erased by one accident.
Cost comparison: rideshare endorsement vs. commercial policy
| Policy Type | Typical Monthly Cost | Coverage During Waiting Period | Collision/Comprehensive Included | Best For |
|---|---|---|---|---|
| Rideshare endorsement | $10–$25 | Yes | No (separate policy) | Part-time Uber drivers with existing personal insurance |
| Standalone rideshare policy | $25–$50 | Yes | Optional add-on | Drivers switching insurers or needing dedicated coverage |
| Commercial auto policy | $50–$150+ | Yes | Yes (usually included) | Full-time drivers or those doing multiple types of commercial driving |
The rideshare endorsement is almost always the cheapest option for part-time drivers. If you drive for Uber a few hours per week, the extra $10 to $25 per month is much less than the cost of a full commercial policy. The trade-off is that you have to manage two policies — your personal insurance and the rideshare add-on — and make sure both are active.
A commercial policy makes more sense if you drive full-time or if you also do delivery work for DoorDash, Instacart, or similar services. You pay more per month, but you have one policy that covers everything and you do not have to worry about switching between personal and commercial coverage.
What happens if you have an accident
If you are in an accident while logged into Uber, the first step is to report it to Uber through the app. Uber will ask for details and may assign you a claims representative. At the same time, you should report the accident to your personal insurer and mention that you were driving for Uber at the time.
If you have a rideshare endorsement, your personal insurer will handle the claim. If you have a standalone rideshare policy, that insurer will handle it. If you have only Uber's coverage and no personal policy, Uber's insurance will cover liability but not damage to your own vehicle.
The claims process usually takes two to four weeks. You will need photos of the damage, the other driver's information, a police report if one was filed, and any medical records if you were injured. Keep all documentation and do not agree to settle with the other driver without going through your insurer first.
Frequently Asked Questions
Can I use my personal auto insurance while driving for Uber?
No. Personal auto insurance explicitly excludes commercial use, which includes rideshare driving. If you cause an accident while logged into Uber, your personal insurer will likely deny the claim. You must have a rideshare endorsement, commercial policy, or standalone rideshare policy to be covered during the waiting period.
Does Uber's insurance cover damage to my own car?
No. Uber's insurance covers liability (damage you cause to others) and uninsured motorist protection, but not collision or comprehensive damage to your own vehicle. You need your own collision insurance to cover repair or replacement costs if you are in an accident.
What if I get in an accident during the waiting period?
If you have a rideshare endorsement or commercial policy, your insurer will cover it. If you have only Uber's coverage, you will not be covered because Uber's insurance does not start until you accept a ride. This is why buying a rideshare endorsement is essential.
Will my insurance rates go up if I tell them I drive for Uber?
Probably, but the increase is usually modest — often $10 to $30 per month. This is much cheaper than the risk of being uninsured. If your insurer's rate increase is too high, get quotes from other companies; many now offer competitive rideshare rates.
Can I switch between personal and commercial coverage depending on whether I am working?
Technically yes, but it is risky and impractical. You would have to cancel your commercial coverage every time you stop working and reactivate it every time you start again. If you forget to reactivate it before accepting a ride, you will be uninsured. A rideshare endorsement or commercial policy that stays active all the time is much safer.