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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 insurance policy requirements that apply to rideshare drivers. 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.
Arizona Personal Insurance Requirements for Uber Drivers
Uber drivers must have a personal auto insurance policy that meets the minimum requirements set by the state of Arizona.
These requirements include:
Liability Coverage
Uber drivers in Phoenix are required to have liability coverage that meets or exceeds the following minimum limits:
- $25,000 covering bodily injury to or death of any one person in any one accident (limited to one person)
- $50,000 covering bodily injury to or death of two or more persons in any one accident
- $20,000 covering damage or destruction of the property of others in any one accident
Uninsured/Underinsured Motorist Coverage
Arizona law also requires Uber drivers to carry uninsured/underinsured motorist coverage with the same minimum limits as liability coverage. 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.
Personal Injury Protection (PIP) or Medical Payments Coverage
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.
Commercial Insurance Requirements for Uber Drivers
In addition to personal auto insurance, Uber drivers in Phoenix must also have commercial auto insurance. Uber provides commercial insurance to their drivers that vary depending on what stage of the ride they are on.
App is On, but No Ride Accepted
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:
- $50,000 per person for bodily injury
- $100,000 per accident for bodily injury
- $25,000 per accident for property damage
This coverage is contingent on the driver’s auto insurance policy being in force and providing primary coverage. 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.
En Route to Pick-Up or Passengers In Car
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:
- $1 million in liability coverage per accident
- Uninsured/Underinsured motorist coverage, if required by state law or provided by Uber, whichever is greater
- Contingent comprehensive and collision coverage, up to the actual cash value of the vehicle, with a $2,500 deductible
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 would not be covered by Uber’s commercial insurance and would fall under their auto insurance policy.
Additional Insurance Considerations for Uber Drivers
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:
Gap Insurance
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. Consider adding gap insurance to your policy, which covers the difference between the actual cash value of your vehicle and the amount you owe on your auto loan or lease.
TNC Endorsement
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.
Review and Update Coverage
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.
Protect Your Rights by Understanding the Laws Around Insurance Coverage
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 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 today to schedule a consultation with an experienced attorney.
