That’s why it’s crucial to understand the types of coverage you need, the average cost, and how to find the best policy to ensure that you and your passengers are protected.

Luckily, we’ve developed a simple guide exploring all of these key points. Let’s dive in!

Already know what you need? That’s great! Get a personalized commercial auto insurance quote from EZ.Insure today, and stay protected from day one. 

Why Uber Drivers Need More Than Just Personal Auto Insurance 

When you drive for Uber, basic personal auto insurance is not usually sufficient. Here’s why:

The Difference Between Personal Auto and Commercial Insurance

Personal auto insurance is intended for personal, not commercial, usage. When you drive for Uber, you are using your vehicle for commercial purposes, which alters your risk profile in the eyes of insurance companies. This means that many personal motor insurance policies will not cover incidents while driving for Uber.

Gaps in Uber’s Insurance Coverage

Uber offers some insurance coverage to drivers, but it is limited. Uber’s coverage only applies during some parts of your drive. 

Let’s take a look at some specific driving situations and which insurance coverage would apply during each: 

• Offline or Personal Use: If you are using your vehicle for personal purposes, and not online in the Uber app, you’ll have to rely on your personal vehicle insurance policy. 

• Waiting to Receive a Ride Request: Uber offers limited liability coverage during these times.

• En Route to Pick Someone Up & During a Ride: Uber provides liability, collision and comprehensive coverage, but only if you have these coverages on your personal policy. Their coverages also usually include a deductible. 

In short, while your own coverage will help in some ways, having a comprehensive commercial auto plan helps by filing the gaps in coverage, so you can avoid costly out-of-pocket expenses. 

Types of Commercial Insurance You Need as an Uber Driver 

As an Uber driver, you need several kinds of commercial insurance to ensure complete coverage. Here’s an overview of the coverage types you’ll want to invest in: 

Rideshare Insurance: This is a hybrid coverage intended for Uber and other ridesharing drivers. It fills the gap between your personal auto insurance and Uber’s coverage, ensuring you’re protected during all driving phases

Liability coverage: This coverage type protects you if you are at fault in an accident that injures others or damages another person’s property. This coverage is crucial in order to avoid costly out-of-pocket expenses for legal or medical bills.

Collision Coverage: This policy type provides coverage for the cost of repairing or replacing your car in the event of an accident, regardless of responsibility. Since Uber’s collision coverage is only available if you have it on your personal policy, adding collision insurance to your business policy assures you’re covered in the event of an accident while driving for Uber.

Comprehensive Coverage: This type of  insurance protects you from non-collision incidents such as theft, vandalism, and natural disasters. Given the time that Uber drivers spend on the road, this coverage is critical.

Underinsured/Uninsured Motorist Coverage: If you are hit by a driver who does not have appropriate insurance, underinsured/uninsured motorist policy will protect you. 

Risks of Driving for Uber Without Commercial Insurance 

Driving for Uber without sufficient commercial insurance might result in major financial and legal consequences. Here’s what you’re risking: 

• Risk of Claim Denial: If you are involved in an accident while waiting for a ride request, your personal motor insurance may deny your claim due to commercial use. Without commercial insurance, you may be solely responsible for repair costs and liabilities expenses.
• Out-of-Pocket Expenses: Paying for medical bills, car repairs, or legal expenses out of pocket can be extremely costly. Commercial insurance protects you from such risks by ensuring you are covered in all circumstances.

How to find Commercial Auto Insurance for Uber Drivers 

Finding the right commercial insurance for Uber requires careful consideration. Here are key factors to keep in mind:

• Coverage Options: Look for policies that specifically cover rideshare driving and offer comprehensive, liability, and uninsured motorist protection.
• Cost and Affordability: Balancing affordability with the right coverage is crucial. Getting quotes from multiple providers can help you find competitive rates.
• Customer Support: Choose an insurer with excellent customer service to ensure you can easily manage claims or get assistance when needed.

Compare Rates with EZ.Insure

EZ.Insure is the best option for Uber drivers looking for commercial insurance. EZ.Insure simplifies the process for rideshare drivers by providing quick quotes, low rates, and coverage options tailored to their needs.

Get a personalized commercial insurance quote from EZ.Insure now and drive with confidence.

Average Cost of Commercial Insurance for Uber Drivers

The cost of commercial insurance for Uber varies based on several factors:

• Location: Urban regions typically have higher premiums due to increased accident risk.
• Driving History: A clean record will help lower your insurance, however accidents or violations might raise it.
• Vehicle Type: Larger vehicles or those with higher repair expenses may have higher premiums.

While premium costs vary quite a bit depending on the above factors, and the carrier you’re working with, Uber drivers typically pay between $100 and $300 per month for commercial auto coverage. 

FAQs

Do I need commercial insurance coverage even if I only drive part-time for uber? 

Yes, even part-time Uber drivers require commercial insurance. Part-time driving is still considered commercial use and is therefore not usually covered by personal vehicle insurance.

What is the difference between rideshare and commercial insurance?

Rideshare insurance is a type of commercial auto insurance intended exclusively for drivers employed by companies such as Uber. It fills in gaps that traditional business or personal insurance may not cover. Commercial insurance is an overarching term that refers to a variety of different policy types, all aimed at protecting businesses.

Can I drive without company insurance while not logged in to Uber?

Yes, when you are not actively working for Uber, your personal motor insurance usually covers you. However, getting rideshare or commercial insurance guarantees that you are fully covered while on the job.

Is this blog’s information applicable when driving for other ridesharing apps, such as Lyft? 

Yes, the information in this guide is generally applicable to drivers for other ridesharing firms, including Lyft. Whether you drive for Uber, Lyft, or another service, the need for commercial insurance is similar. Both Uber and Lyft offer limited insurance coverage, but it may not entirely protect you in all instances. 

Get the Peace of Mind You Deserve as an Uber Driver

Commercial insurance for Uber drivers is more than just an option; it’s necessary in order to protect yourself, your passengers, and your rideshare business. 

Commercial insurance provides the peace of mind that every driver deserves by filling in the gaps between personal and Uber-provided insurance. 

Don’t leave your safety to chance. Instead get insured today!

Ready to take the next steps? To ensure that you’re covered every mile of the way, get a quote from EZ.Insure! Simply enter your ZIP code into our data form, or call us directly at (855)-694-0047. 

Was this guide helpful? If so, take a moment to check out our entire resource library where we house tons of informational articles, all aimed at helping people save money and run successful business operations!

You’ve finally made it, you are your own boss and you run your business out of your home. You’re not alone. There are currently more than 20 million people in the country who work from home. Of those, almost 70% are running their own home-based business. The question is, is your home business properly insured or are you one of the many who are underinsured because you assume your homeowner’s insurance will cover your business? Below we’ll go over what business insurance policies you may need and why. 

Homeowners Insurance Is Not Enough

While you were starting your company, you know doubt gave a lot of thought to many different aspects. What kind of business, what supplies you need, how shipping works etc. We’ve got one more to add to your long list of worries. If you think that your homeowners policy you have is enough to cover your business against damages and liability, you’re more than likely wrong. The typical homeowner’s insurance policy will only pay out for up to $2,500 in damages inside the home. And only about $100,000 for liability. In some cases it won’t even cover anything for claims related to a business. Additionally, some parts of your homeowner’s insurance can be actually void if you’re operating a business out of your home without other proper coverage.

Policies You Need

Now that you know your home business needs specialized policies, you will need to give some thought to the kind of insurance coverage that your specific business needs. First ask yourself a few questions:

• What is my business property’s value?
• Do I have employees?
• Do I use a vehicle for my business?
• What type of risks are associated with my business?
• Do customers come into my home?
• Do I digitally store sensitive information?

Once you’ve answered those questions it’s time to think about the policies that will work best for your business. Since Business insurance for a home-based business typically consists of a variety of different policies. You’ll want to carefully consider whether or not you will need more than one of the following types of protection:

Commercial Property Insurance

This policy will provide protection for all of the physical property associated with your company from damages and accidents. Such as fire, theft, or vandalism. If the value of the equipment in your home office is more than what your homeowners insurance policy will cover, or if you keep more than $10,000 worth of inventory in your home, you may need this insurance. Even if you don’t use the expensive equipment on your own property, such as landscaping equipment or handyman tools, if you store the equipment and use it elsewhere you will also need this policy. If you don’t keep any high-value business property at your home, or if your homeowners policy will cover damages, you may not need it. For instance if you are a freelancer and only use your personal laptop for work, then you probably do not need commercial property insurance.

Commercial Liability

Commercial liability covers claims made by third parties (customers, clients, general public). This type of business insurance will pay for any legal defense expenses if your company is sued for causing bodily injury, damage to property, or advertising injury. This includes anything from hiring an attorney to paying court-ordered settlements and any other legal costs that arise. This policy is needed for any home-business that interacts with customers or clients. You’ll want to have at least $500,000 of coverage to protect you against any potential claims that may be made against your business. Specifically if you work off-site with the general public or if you have customers or clients that come to your home for any reason. 

Cyber Liability

Having a home-based business means you probably use your computer and the internet. Whether it be to store client information, payments, and even client’s products (such as graphic design or writing if you’re a freelancer). If you use any kind of technology you need to protect your business against the threats that come with that technology. These threats include hackers and data leaks and can damage your company beyond repair. With cyber liability your business will be covered for any losses that stem from the cyber attack. This includes investigating services, data recovery, and identity recovery. It can even cover damage to your customers or business partners such as legal fees, customer notifications, and settlement costs.

Errors & Omissions

If part of your business provides intangible services, such as financial advice, providing personal training, doing someone’s taxes, or consulting, you will need this policy. This policy will cover your business if a customer sues you for damages that result from your advice or consulting. It also covers your business if you don’t meet a deadline, breach your contract, or are accused of negligence. In most cases a standard liability policy will not pay out for this form of damage as it’s not physical. So, it’s important to have if any part of your business involves giving professional advice in any way.

Workers’ Compensation

If you have any employees, workers’ compensation should be something you look into. It covers the lost wages, medical costs, and death benefits in the event that your employee is injured or becomes sick or passes away from a work related incident. Depending on the state you live in, you might legally have to have this policy. Some states require any business with at least one employee (besides yourself) to have it while others only require it if you have a certain number of employees. To find out more about the workers’ compensation laws in your state check out our workers’ compensation state by state guides.

Commercial Auto Insurance

Commercial auto insurance is just like personal auto insurance except it’s specifically meant to cover vehicles used for business purposes. It covers damages and medical costs that come from unexpected car accidents as long as the vehicle belongs to a business or was operating for work. This could be a truck and trailer for landscaping, a van you use to haul goods. Or even your personal vehicle if you meet with clients or deliver things to your clients personally. Your personal auto insurance will only provide limited coverage. And may not even cover your vehicle at all if it were being used for business purposes. This could leave you with massive debts that could be avoided with the proper insurance.

Health Insurance

We know, health insurance doesn’t sound like business insurance. However, being self-employed means, you don’t get benefits like a group health insurance plan through an employer. Because YOU’RE your employer. This is commonly overlooked and health insurance for yourself is just as important as any other business insurance. Because protecting yourself protects your business. You’ll want to look into getting yourself an individual policy. Or a family policy if you have dependents or a spouse. This makes sure you stay healthy and never have to dip into the money your business relies on to pay for expensive medical bills. Because you are your business, without you, everything comes to a halt. 

Add-Ons and Packages

That seems like a lot of insurance, especially if you have a generally small business at the moment. There are easier ways to cover your small business if you don’t actually need the full extent of the coverages listed above. There are add-ons and packages specifically meant to give your smaller business property and liability insurance but on a more reasonable scale. These options are:

• Endorsements – As we noted above, your homeowners policy might cover some damages but not all. If your home-based business generates less than $5,000 a year you might be able to add a business endorsement to your standard homeowners policy. This endorsement will increase the amount of your standard policy. As well as ensure none of your homeowners policy is void due to having a home-based business.
• In-home business policy – These policies are essentially business owner’s policies (BOP), a combination of property and liability coverage, but on a smaller scale. These packages will allow you to bundle smaller business property insurance and liability policies without the cost for coverage that a standard BOP would offer. Typically, the packages will include up to $10,000 in property coverage. And allow you to add anywhere from $300,000 to $1million in liability coverage. This bundle is much more affordable than buying standalone commercial property and commercial liability coverage.

Don’t Stress With EZ

All this information may be overwhelming and a lot to process, especially considering how much you already have going on as a business owner. EZ.Insure is here to assist you, whether you are confused, need help enrolling, or in need of some guidance. We are able to put you in touch with a representative who will answer any questions that you might have. You will have access to one highly trained agent. Who will direct you in the direction of the policy that is best suited for your work from home business.

To discuss your commercial insurance needs with one of our representatives over the phone, please dial 877-670-3538. If you are interested in health insurance that we discussed, you can reach us at 877-670-3557. You can also get a free instant quote by entering your zip code in the box below. You will never be harassed by an endless stream of sales calls, and there will never be any fees associated with using any of our services. Let us do the heavy lifting so you can focus on building your business.