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Find the latest news, articles and guides, covering all the important topics from what to do if you’re driving abroad to how GAP Insurance works and everything in between.

14 January 2021

A Guide to Uber Driver Insurance

by User Not Found

Over the last decade, Uber has become a business phenomenon, making over 6.9 billion trips in 2019, up from 140 million in 2014. 

Its popularity is probably why you’re considering becoming an Uber driver. But have you thought about the type of insurance cover you need, if any? Brightside’s guide to Uber driver insurance tells you everything you need to know.

Do you need Uber driver insurance?

Working for Uber, you’re an independent contractor rather than a full-time employee. That brings with it many benefits, including working for yourself and having your own schedule.

However, one area you’ll need to look into before you start out as an Uber driver is insurance. Ensuring you have the correct type of cover is essential if you want to protect yourself, your customer(s), and any third-party should an accident occur.

It’s worth checking the level of cover you’re provided with Uber, as it may be enough for you to drive paying customers from A to B. You might then decide that you need private hire insurance, which can be provided through a broker like Brightside Insurance.

It’s also important that you’re clear with your insurer or broker that you are – or intend to be – an Uber driver. It may not affect your policy at all, but full disclosure is vital in ensuring your policy is valid. Some insurers are even offering dedicated Uber driver insurance policies as well as taxi insurance.

What your Uber driver insurance can include

The basic requirement is that you have private hire insurance for hire and reward. But there are three types you can choose from, varying in the level of cover and price.

Third-party only

This is the most basic level of private hire insurance you can have as an uber driver. It covers damage caused to any third-party vehicle or any people you injure in the accident.

Third-party fire and theft

Third-party fire and theft provides everything third-party only does, except you’re also covered if your car is stolen or involved in a fire.

Fully comprehensive

As the most complete package, fully comprehensive covers everything within third-party fire and theft, as well as damage caused to your car and injuries sustained by you.

The type of cover you choose depends on the risk you want to take and the initial price you want to pay. Third-party is the basic requirement and the cheapest option, but in the unfortunate event of an accident it means you’ll have to pay for damage caused to your car. Fully comprehensive may seem more expensive in the short term, but if offers much more protection in the long term.

As well as private hire insurance, you’ll also want to consider some additional cover.

Public liability insurance

Public liability insurance isn't a legal requirement for Uber drivers, but it’s highly recommended. It covers you when a passenger is injured or worse as a result of your driving, which can ultimately lead to a legal claim.

Legal expenses

If the unfortunate were to happen, and a claim is made against you, legal fees can be hugely expensive. Legal expenses covers this, ensuring you don’t have to pay out of your own pocket.

Replacement car cover

As an Uber driver, if you can’t drive, you don’t get paid. If your car is damaged and undriveable, replacement car cover ensures you can continue working.

Ways to make your Uber driver insurance cheaper

When you apply for a policy, all the information you provide to the broker or insurer needs to be correct. If anything is incorrect and you have an accident, your policy will be deemed invalid.

However, there are certain things you can do to ensure your policy is as cost-effective as possible. Consider:

The vehicle you drive

Make, model, engine size, and vehicle age are all considered when analysing a premium. A make and model known to be reliable, bought almost new, with a smaller engine size will be cheaper to insure than an older model with a larger engine size. As an Uber driver, you’ll always have efficiency in mind when purchasing a vehicle, but insurance costs should play a factor, too.

Where your vehicle is parked

Depending on where you live, you may park your vehicle on the road, a drive, or inside a garage. On-road parking will make your insurance premium more expensive than if it was parked in the garage as the risk of damage is greater. This isn’t always within your control, but if you can, park your work vehicle in as safe a location as possible.

The area you cover for work

If you work within a busy city with heavy traffic and an increased chance of accident, your premium will be higher than if you worked within a quieter town. Be honest about where you work, but if it’s usually in the suburbs of a city rather than the centre, it could lower your premium cost.

How to get the best Uber driver insurance deal

The easiest way to find a good deal on your Uber insurance is to use an experienced broker. One Insurance Solution, part of Brightside Insurance, are on hand to give you some top tips and help you navigate the tricky waters. Applications can take minutes, and we have access to some of the UK’s biggest insurers, meaning we can tailor a deal that suits you. Contact us directly for more information.

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