Driving for Uber in Maryland can be a great way to earn extra income. But it also comes with responsibilities, especially when it comes to insurance. Many drivers assume that Uber’s insurance policy fully protects them in every situation. However, the reality is more nuanced. Understanding when you’re covered, when you’re not, and whether additional uber insurance is a smart investment could save you from serious financial and legal troubles.
What Coverage Does Uber Provide?
Uber does offer insurance coverage for its drivers, but it’s divided into three distinct periods. First, when your app is off, you’re not considered to be working for Uber. During this time, your personal auto insurance is the only coverage in effect. Second, when your app is on and you’re waiting for a ride request, Uber provides limited liability coverage. This typically covers up to $50,000 per person, $100,000 per accident for bodily injury, and $25,000 for property damage. This is often not enough if you’re in a serious accident.
The third period is when you’ve accepted a ride and are either on your way to pick up the passenger or already have them in the car. During this time, Uber provides up to $1 million in liability coverage, along with limited collision and comprehensive coverage. However, this only applies if you have that coverage on your personal policy. There’s may also be a deductible before Uber’s coverage kicks in.
Maryland Insurance Laws and Rideshare Drivers
Maryland law requires all drivers to carry minimum auto insurance coverage. But it doesn’t automatically account for the unique needs of rideshare drivers. Because driving for Uber is considered a commercial activity, your personal insurance policy may not cover accidents that happen while you’re working. In fact, some insurers may cancel your policy if they find out you’re driving for a rideshare company and haven’t disclosed it.
Maryland has also implemented specific requirements for Transportation Network Company (TNC) drivers. The state mandates that all Uber drivers have at least the same levels of liability coverage that Uber provides, but this doesn’t mean you’re fully protected. The gap between personal and Uber coverage, especially during that waiting period, can leave drivers exposed.
Why You Might Need Additional Insurance
To cover the gaps in Uber’s policy and stay compliant with your insurer’s terms, many Maryland drivers opt for additional rideshare insurance. This is a special type of policy or endorsement that extends your personal coverage to periods when you’re working for Uber but haven’t yet picked up a passenger. It helps close the coverage gap and can protect you from significant out-of-pocket expenses if you’re in an accident during that time.
Having this extra protection also gives you peace of mind. If you get into a crash while waiting for a ride request, your personal insurance may deny the claim. Uber’s limited coverage may not be enough to cover damages or medical bills. Additional insurance could help protect your income, your car, and even your ability to continue driving for Uber.
Talking to Your Insurance Provider
If you’re driving for Uber in Maryland or planning to start, it’s wise to talk to your insurance provider before hitting the road. Be upfront about your rideshare activity and ask whether they offer a rideshare endorsement or policy. Some insurers offer affordable add-ons that can be tailored to your specific driving habits, while others may require you to switch to a commercial policy.
Uber Insurance in Maryland
At Roadway Insurance, we are dedicated to ensuring every Maryland driver has the right kind of auto insurance. While Uber and other rideshare companies provide some coverage, they often leave gaps. Having additional Uber insurance could prevent the need to pay out-of-pocket for accidents on the job. Contact us today to schedule an appointment and see if you have the right insurance you need.