If you are an Uber driver or have a vehicle on the road leased to an Uber driver, you should, by now know that it is a source of income, pretty much your office on wheels. Any car can become an Uber, there are a number of types of vehicles on offer and it has pretty much turned the taxi industry on its head. If you have an Uber enabled car, or if you have your vehicle registered with Uber, you may need more than just ordinary automotive insurance. What you need is a commercial auto insurance policy. An ‘Uber insurance’, if you will.
Why get Uber insurance?
While an auto insurance policy is good, and mandatory for vehicles, you are now making it a source of income for yourself so it only makes sense that you get a bit more comprehensive with your insurance. The biggest reason for you needing to do this is because your car will be spending a lot more time on the road. Chances of mishaps also rise to a point where a simple auto insurance is just downright insufficient.
Your priority should be to keep your car fully operational, at all times. Ubers are a bit more premium in terms of pricing when compared to ordinary yellow taxis, so your passengers will expect a lot more quality and creature comforts. You just cannot afford to have a car that is not top notch. As the owner of the car, it is on you to know exactly what you need in terms of insurance. The extent of cover should be sufficient to keep you on your feet even when you face some kind of repair and are off the road for a day or two. It is doubly important when your Uber acts as your primary source of income.
Here are a few things that your Uber insurance should effectively cover:
Commercial vehicles like taxi cabs are required to have some level of liability cover. If you are involved in a traffic collision where you are at fault, then you will need insurance to cover your financial losses. In such cases you will be required to make payouts for injury and other damages to other vehicles that your car might damaged. Commercial auto liability will also cover any defense fees that may arise in case the injured party decides to file a law suit against you.
Bodily injury that you may have caused will also be covered with the liability clause in your Uber insurance. Medical bills and related expenses for all those involved in the accident is secured herewith.
Property damage is another part of your insurance that will need to be covered. There may also be physical damages that others things might get; that includes vehicles, property, and other assets that may need repairs or replacement.
From your side
You are also likely to suffer some form of bodily injury that you will have to pay for. If the other party involved in the accident is at fault, but are not covered or under-insured, then your Uber insurance will have to cover you. The option and level of cover that each insurance policy offers is different from state to state, so use our comparison tools to get to know more about these options.
Physical damage to your vehicle can put you out of business for a short while, and you will be spending a good amount of money getting your car back on the road. Physical damage protection is important as you need to be making car payments every month if your vehicle is on a loan, with your Uber off the road for a few days or even a week, you need some kind of backup money to keep your car both in the shed and paid off for.
Other physical damages that a car can take may involve vandalism, theft, fire, or any such incidents carried out intentionally. Other things like storm damages, where a tree, for example may fall on your car, you might want that covered as well. Comprehensive coverage should be able to keep you afloat, so when getting a policy, always go through every clause and make sure you are covered. It makes sense to always compare between a number of policies from different companies before finally signing.
Collision damage is also another type of protection that is required. Collision damage is when there is damage only to your cab. It does not involve any other person or assets and vehicles. Think of it like you scratching your car against a telephone pole or ramming a tree. Your car will get damaged, but there are no third party damages in this case.
Uber insurance is vital, never settle for the cheapest, or over insure. Make every dollar spent on coverage count.