Perhaps you have heard that Uber has a $1 million liability insurance policy that comes into play if your driver causes an accident.
However, this full policy is only in effect in certain situations. Here is how it works:
If the Uber driver has his or her app off and is using the car for his or her personal purposes, his or her own auto insurance policy must cover the expenses and impacts of injuries caused to others.
If the driver’s app is on and he or she is awaiting a ride request when the accident occurs, the primary insurance source will be the driver’s personal policy. However, if that policy will not provide coverage, Uber provides this third-party liability coverage: $50,000 in bodily injury per person; $100,000 in bodily injury per accident; $25,000 in property damage per accident.
If the driver is en route to pick up a passenger or transporting a passenger, Uber provides $1 million in third-party liability coverage.
This doesn’t mean you will recover $1 million in a lawsuit against Uber in those situations—you need to suffer $1 million in losses to do so. In a serious accident involving catastrophic injuries, however, that can happen, and the expenses can far exceed the minimum car insurance policies most people carry. Uber’s policy may cover more of your damages.