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Who Covers Damages in an Accident Involving an Uber?

Though rideshare companies make moving about New York City easier and more convenient than ever, they do raise a few questions and concerns. One such concern is, who assumes financial liability for damages sustained in an accident? Until recently, that question went unanswered as Uber and its drivers argued over which party should carry the insurance. It seems that now, however, according to Uber’s website, the parties have reached a compromise. 

According to the website, an Uber driver is financially liable for damages sustained in an accident if his or her app was off at the time of the incident. If the driver has coverage, said coverage should kick in. 

If the accident occurs when the driver’s app is on and reads “Available” or “Waiting for a Ride Request,” Uber’s auto insurance will cover the cost of damages if the driver’s coverage does not meet the company’s set minimum. Uber’s automobile insurance policy will cover up to $50,000 in medical expenses per injured party, up to $100,000 in medical payments per accident, and up to $25,000 in property damage per incident. 

If the accident occurs during a trip or while the driver is on his or her way to pick up a passenger, Uber’s insurance, again, kicks in. However, the limits increase. In such a case, Uber’s coverage would include $1,000,000 in third-party liability, comprehensive and collision coverage, and uninsured/underinsured bodily injury protection. Comprehensive and collision coverage only applies in instances in which the driver has similar coverage on his or her personal policy. Additionally, if the at-fault driver does not have coverage, or if his or her coverage is not enough to cover the cost of damages, Uber’s uninsured/underinsurance motorist coverage is subject to state limits. 

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