Does Driving for Uber Raise Your Insurance? [2021 update]

Insurance makes up one of the largest costs of owning a car. We talk about the effect on your premiums of driving for Uber.

Does driving for Uber raise your insurance

Whether you are using Uber as your primary source of income, or an extra side-income, you can find it to be quite the profitable career. But before you look into signing up as a driver or delivery person, one question you may have is ‘does driving for uber raise your insurance?’ The short answer is yes, it does. 

There may be some instances where your car insurance is not affected by driving for Uber, but it all depends on your previous driving record, your insurance provider, and your state/location. For the most part, insurance companies do charge extra for driving for Uber, but depending on your personal situation, the extra fee might be waived. 

Does Uber provide insurance?

Yes, Uber does provide insurance. When you are offline or your Driver app is off, you will be using your personal insurance company for any damages, however when you are online ; available, waiting, en route to pick up riders or during trips, Uber has coverage for you. 

This means that should you get into an accident, or if something happens to your car, you can file the insurance claim with Uber, and the insurance company will take care of it. You can learn more about Uber coverage from the official Uber website

Should I tell my insurance company about Uber?

Yes, you should tell your insurance company about Uber. You should always be as transparent with your insurance as possible because if they find out that you haven’t been transparent with them, you could get in trouble for fraud. 

Your insurance might get raised if you tell them, but you might have an option to opt-out of what insurance companies call a “rideshare endorsement,” where you pay a little extra. But letting them know, so they have as much information as possible is the best thing that you can do. 

Which insurance companies cover Uber drivers? 

Despite Uber covering you for insurance while you are driving for them, increasing your personal auto insurance coverage to include rideshare or delivery coverage can give you even more protection in the event of an accident. 

Each state’s insurance will vary, and you should verify with either the Uber website or your personal insurance’s website if they offer rideshare insurance. However, the main insurance companies that cover Uber drivers in most states are: 

  • Progressive Corporation
  • GEICO
  • Allstate
  • State Farm
  • Farmers Insurance Group
  • Liberty Mutual

Why does my personal insurance get raised? 

Your personal insurance is raised because you are no longer only using your vehicle for personal use, but now commercial use. This means that for the average person (who drives their vehicle to/from work, to the store, or on trips, to name a few) is now on the road more often, putting themselves or their vehicle at a higher risk for injury.

This does not mean that you are guaranteed to get into an accident, just that it is more likely than it was before you began to drive for Uber. So your insurance is raised to cover the now higher chance. 

Even if Uber covers you while you are on the job, you are still responsible for your own vehicle, and so your insurance becomes a little higher than it was before. This cost can be recuperated 

How much more is car insurance for Uber?

Unfortunately, this doesn’t have a clear-cut answer. It can depend on a number of factors, that will all contribute to a higher or lower insurance rate. 

Your personal driving history is one of the main factors they will look at, when giving you a new quote for driving with Uber. If you have a long, clean record, your rates will be lower. They know you are a good driver, and you are less likely to be in an at-fault accident. However, if you haven’t been driving as long, or have put in multiple claims, your rates will likely be higher, because you are less dependable when driving. 

The type of vehicle you drive is another consideration they will make when giving you a rideshare endorsement insurance quote. If your vehicle is larger, and you can hold more people, they will charge you more. Similarly, you might be charged more if you have a sports vehicle, or a more ‘luxury’ car because this will be more in-demand. 

That being said, most Uber drivers say they are charged a rideshare endorsement fee of between $15-$20 per month, which is a fee that can be covered within your first couple of rides or deliveries. 

Conclusion

Unfortunately, in the majority of instances, you will be charged a little extra per month for driving with Uber. This is done primarily to help keep you and your passengers extra protected while you are driving for the company. 

It is best to call your insurance company as soon as you sign up to drive for Uber, and cover the additional cost through the first couple rides you accept each month.