All You Need To Know About Uber Insurance Coverage

Uber drivers are rewarded with fares and bonuses based on their ratings and the completion of trips. However, many Uber driver-partners do not have commercial auto insurance to protect themselves or their passengers if they’re in a car accident.

According to Uber’s official insurance overview, only about 40% of all Uber drivers are commercially insured. But what about the other 60%, Uber drivers? They drive without protection for either themselves or their passengers in case something goes wrong.

If you’re a passenger in an Uber vehicle, you may have to use your personal auto insurance policy if you have one. But should you have a collision with an uninsured driver? What if the accident is your fault and passengers in other vehicles are involved?

Do Uber drivers carry commercial auto insurance?
UberX and Uber Black drivers must carry full commercial insurance to cover their liability for themselves and their passengers if they’re involved in a car accident. They also must pay licensing fees based on the state in which they operate, as required by regulations from bodies like the Federal Motor Carrier Safety Administration (FMCSA). However, many drivers do not buy this type of insurance or pay these fees because it’s expensive.

Uber Green drivers don’t have to carry commercial auto insurance, but they must have proof of personal car insurance coverage that meets their state’s minimum liability requirements.

Uber drivers are responsible for providing their auto insurance, and rideshare companies aren’t required to provide any coverage for drivers because they’re considered independent contractors. This classification has been a point of ongoing regulatory debate, with agencies such as the U.S. Department of Labor examining how gig worker status affects benefit entitlements, including insurance obligations.

How can you get Uber commercial insurance?
There are a few different ways for Uber drivers to get commercial auto insurance. The most common way is to buy a personal auto policy that includes commercial liability insurance. Most personal auto policies have liability coverage regardless of where the accident happens. Insurers like Progressive, State Farm, and Allstate now offer specific rideshare endorsements designed to close coverage gaps for gig drivers.

But these policies don’t cover any other events, such as collisions, injuries or damages that happen while the driver is using their vehicle for business purposes. These policies also don’t cover any incidents that occur while a driver is carrying paying passengers, like Uber trips. The Insurance Information Institute (III) strongly recommends that all rideshare drivers review their existing policies for these exclusions before driving for any platform.

You can buy an umbrella policy to prolong your coverage if needed. Umbrella policies are usually cheaper than buying a significant number of policies individually. You only need to buy one umbrella policy to cover all accidents with any vehicle, such as an Uber or a personal car. According to NerdWallet’s umbrella insurance guide, a personal umbrella policy typically provides an additional $1 million to $5 million in liability coverage at a relatively affordable annual cost.

But there is another way drivers can get commercial auto insurance: using a commercial auto broker. These insurance agents specialize in providing commercial coverage for the vehicles they represent. They can provide the terms and conditions of coverage, and they will help you purchase this mandatory group coverage from an insurance company on your behalf.

Not every broker offers this type of service, so be sure to contact your current broker and ask if they have any experience working with Uber drivers or for other rideshare companies. You can also search the National Association of Insurance Commissioners (NAIC) producer licensing database to verify a broker’s credentials before purchasing any policy.

Uber insurance covers passengers, too.
While Uber drivers and their passengers are covered by their auto policies, Uber does provide some coverage for both. Passengers have the same liability coverage that Uber drivers have, regardless of whether the incident occurs in an Uber vehicle or not. And passengers’ medical bills are also covered as long as they don’t incur more than the stated worth of expenses from the accident. This is consistent with how the Insurance Information Institute defines third-party liability obligations under commercial auto policies.

The Uber insurance policy doesn’t cover accidents with other vehicles in every scenario. Still, if you’re involved in a car accident with an uninsured driver or someone driving an unknown vehicle, and you filed a claim on your insurance policy afterwards, then your coverage will be held harmless. No additional penalties will be assessed for you. Uninsured and underinsured motorist coverage — a product regulated at the state level under guidelines from bodies like the National Association of Insurance Commissioners (NAIC) — is particularly important in these situations.

However, insurance companies will not pay for any claims related to all types of criminal activities, including carjacking or assault.

What if I’m an Uber driver with no commercial auto insurance?
If you’re an Uber driver and don’t have commercial auto insurance, your passenger’s claims may still be covered by their coverage. But there are some exceptions: if your passenger can prove that you knew about the lack of coverage before entering your vehicle, they can file a lawsuit for damages against both you and Uber. State courts and insurance regulators — including those working under frameworks established by the NAIC — have increasingly sided with injured passengers in these disputes.

If the passenger is injured and you’ve been found to have violated insurance laws, you could be fined or even have your driver’s license suspended. In some states, driving without required insurance is considered a misdemeanor, and penalties can include both civil and criminal consequences under statutes enforced by state Departments of Motor Vehicles (DMVs).

Should You Get Commercial Auto Insurance for Uber?
If you plan on driving for Uber long-term, it’s probably best to purchase commercial coverage from the start. If you continue to drive for Uber long-term and don’t purchase this type of insurance, any injuries or damages that occur while on a ride will not be adequately covered by your personal protection. Consulting resources like ValuePenguin’s rideshare insurance comparison tool can help you evaluate your options by state and budget.

Without commercial insurance, you’re responsible for paying for all costs and damages due to an accident if you drive for Uber, but don’t buy commercial coverage. It can be a huge financial burden on top of driving costs you already incur. According to the Insurance Information Institute, the average bodily injury liability claim in the U.S. now exceeds $24,000, a cost that would fall entirely on an uninsured driver in the absence of proper coverage.

Advantages of having Uber Insurance for passengers
Group policies are a benefit for Uber drivers and passengers as well. When Uber drivers buy commercial group insurance, they can get better rates on their coverage. It is because the premiums depend on the number of drivers covered by the policy.

It means that you might get a great discount on your auto insurance if your driver covers you with commercial insurance. It can help both you and your driver because it will reduce their costs of owning or operating their vehicle and get it back on the road sooner to generate more fares. Platforms like Policygenius allow drivers to compare commercial and rideshare endorsement policies side by side to identify the most cost-effective solution.

Disadvantages of having Uber Insurance for passengers
Although there are some great benefits to being an Uber passenger, being covered with commercial auto insurance can be disadvantageous. If your driver has this coverage and you’re in a serious accident, you might not be eligible for reimbursement. Suppose the driver has a personal auto policy with commercial coverage, but they are only driving for a rideshare company part-time. In that case, your auto policy might not reimburse you either if it’s found that the driver was operating his vehicle for business purposes without proper insurance.

Not all insurance companies offer commercial coverage, and they might charge more in the event of an accident. Suppose you’re not willing to pay a significant premium for your group policy. You might want to consider purchasing only basic personal coverage and upgrading your policy to a more affordable option later on. The Consumer Financial Protection Bureau (CFPB) offers free guidance on evaluating insurance-related financial decisions, which can be a useful starting point for drivers and passengers alike.

This way, you can get both the benefits of commercial coverage and the advantages of having a cheaper policy. It is an option that’s worth considering if you see that commercial auto insurance has lower rates than what you’re using now or if the cost of your expense-based coverage with personal use is higher than it’s worth.

Conclusion
Driving for Uber is a great way to make money, but you should consider the insurance benefits of driving for this ridesharing company. If you’re an Uber driver and don’t have commercial insurance, you could be held liable if someone is injured due to your ride.

If you plan to continue to drive for Uber long-term, it’s best to consider buying commercial coverage from the start. This way, your passengers will have maximum insurance protection, and they’ll be able to make claims without being penalized in any way. Both the driver and passengers will benefit. As of April 26, 2026, the rideshare insurance market continues to evolve rapidly, with more insurers — including Progressive and State Farm — expanding their rideshare-specific offerings to meet growing driver demand.

Frequently Asked Questions

Does Uber provide insurance for its drivers?

Yes, Uber provides contingent liability insurance for drivers, but only during specific coverage periods. During Period 1 (app on, no ride accepted), coverage is limited to $50,000 per person and $100,000 per accident in bodily injury liability. During Periods 2 and 3 (ride accepted or passenger in vehicle), Uber’s coverage increases to $1 million in third-party liability. Drivers are responsible for their own personal auto insurance when the app is off.

What is the difference between Period 1, Period 2, and Period 3 Uber coverage?

Period 1 begins when a driver activates the Uber app but hasn’t accepted a ride request. Period 2 starts when the driver accepts a trip and is en route to the passenger. Period 3 begins when the passenger enters the vehicle and ends when they exit. Uber’s most comprehensive coverage — $1 million in liability — applies only during Periods 2 and 3.

Do I need rideshare insurance if I drive for Uber?

Yes, in most cases. A standard personal auto policy typically excludes coverage for commercial or business use, meaning driving for Uber without a rideshare endorsement or commercial policy could leave you unprotected during Period 1. Most major insurers including Progressive, Allstate, and State Farm now offer rideshare endorsements that close this gap for a relatively modest additional monthly premium.

Are Uber passengers covered if the driver causes an accident?

Yes. During an active trip (Period 3), Uber’s $1 million liability policy covers passengers injured in an accident caused by the Uber driver. This coverage applies to medical bills and other documented damages. However, passengers should be aware that coverage for accidents involving uninsured or underinsured motorists may vary, and personal health or auto insurance may serve as a secondary resource.

What happens if an Uber driver has no commercial insurance and gets into an accident?

If an Uber driver lacks proper commercial insurance and causes an accident during a trip, the injured passenger may be able to file a claim against Uber’s contingent coverage, but legal complications can arise. The driver may face personal liability for damages exceeding Uber’s policy limits, as well as potential fines, license suspension, and civil lawsuits. In some states, operating a vehicle for hire without proper insurance is a misdemeanor.

How much does rideshare insurance cost for Uber drivers?

Rideshare endorsements typically add between $15 and $30 per month to a standard personal auto policy, according to ValuePenguin’s 2025 analysis. A standalone commercial auto policy can cost significantly more — often $150 to $250 per month or higher — depending on the driver’s history, vehicle type, and state of operation. Drivers can compare options using tools available on platforms like Policygenius or through the NAIC’s consumer resources.

Does Uber insurance cover damage to the driver’s own vehicle?

Uber offers contingent comprehensive and collision coverage during Periods 2 and 3, but only if the driver already carries comprehensive and collision coverage on their personal auto policy. This contingent coverage is subject to a deductible of up to $2,500. Drivers who only carry liability coverage on their personal policy will not receive vehicle damage reimbursement from Uber’s policy.

Can Uber passengers file a claim directly with Uber’s insurance company?

Yes. Uber’s liability insurance is underwritten by third-party insurers, and passengers can file a claim through Uber’s in-app support system following an accident. Uber will typically connect the claimant with its insurance carrier. Passengers should document all medical expenses, police reports, and communications related to the incident to support their claim, as recommended by consumer guidance from the Insurance Information Institute (III).

Is Uber insurance the same in every state?

Not exactly. While Uber maintains a baseline coverage structure, state-specific regulations governed by agencies such as the National Association of Insurance Commissioners (NAIC) and individual state insurance departments can affect minimum coverage requirements, available endorsements, and the legal obligations of both drivers and the platform. Drivers should always check their state’s specific rideshare insurance laws before relying solely on Uber’s coverage.

What is an umbrella policy, and can it help Uber drivers?

An umbrella policy is a supplemental liability policy that provides additional coverage beyond the limits of your primary auto or home insurance. For Uber drivers, an umbrella policy can provide an extra layer of financial protection in the event of a catastrophic accident that exceeds Uber’s $1 million liability limit. Umbrella policies typically offer $1 million to $5 million in additional coverage and are often more affordable than purchasing multiple individual policies.