Driving for Uber in Maryland is a great way to make extra money. But most drivers don’t realize that their personal auto insurance probably doesn’t cover them while they’re working.
If you’ve had trouble getting insurance before, or if you’re worried about doing something wrong and losing your coverage, this matters. Let’s break it down simply.
How Uber’s Insurance Actually Works
Uber does provide insurance, but it’s not the same at every stage of your shift. Understanding these three periods is the key to knowing where you’re protected and where you’re exposed.
Period 1: App is off
You’re just a regular driver. Maybe you’re running errands, picking up your kids, or heading home after a shift. During this time, your personal auto insurance is the only coverage that applies. Uber is not involved at all. If you’re in an accident, your personal policy handles everything, assuming it’s active and in good standing.
Period 2: App is on, waiting for a ride
This is where things get tricky. You’re online, available for ride requests, but you haven’t accepted one yet. Uber provides what they call “contingent liability” coverage during this period. That means $50,000 per person, $100,000 per accident for bodily injury, and $25,000 for property damage.
Those numbers might sound decent. But think about what happens in a serious accident. If you hit a newer car and someone goes to the hospital, $25,000 in property damage and $50,000 in medical coverage can disappear quickly.
The bigger problem is that Uber’s coverage during this period is liability only. It does not cover damage to your own vehicle. If you’re at fault, you’re paying for your own car repairs out of pocket.
Period 3: You’ve accepted a ride
This is when you’re either on your way to pick someone up or the passenger is in your car. Uber’s coverage is at its fullest here. Up to $1 million in liability coverage, plus collision and comprehensive coverage for your vehicle, but only if you already carry those coverages on your personal policy. There’s also a deductible, usually around $2,500, that you’re responsible for before Uber’s coverage pays out.
The Gap That Gets Uber Drivers in Trouble
The biggest risk is Period 2. You’re actively working, your app is on, you’re waiting for that next ping, but Uber’s coverage is minimal. And your personal insurance? Most personal auto policies specifically exclude “commercial use” or “transportation network company” activity.
So what happens if you get into an accident while waiting for a ride request? You could find yourself in a nightmare scenario: Uber says their coverage is limited and doesn’t cover your vehicle damage. Your personal insurer denies the claim because you were working. Suddenly, you’re on the hook for:
- Damage to your own car
- Damage to the other driver’s vehicle
- Medical bills for anyone injured
- Legal fees if someone sues
We’ve talked to drivers in Maryland who faced thousands of dollars in out-of-pocket costs because they didn’t know about this gap. One accident can wipe out months of Uber earnings or worse.
What Maryland Law Says About Rideshare Insurance
Maryland requires all drivers to carry auto insurance. That’s not new. But the state also recognizes that rideshare driving is different from personal driving. Maryland has specific rules for Transportation Network Companies (TNCs) such as Uber and Lyft.
Under Maryland law, Uber must provide the coverage we described above. But the law doesn’t force your personal insurer to cover you while you’re working. In fact, many insurers will cancel your policy if they find out you’re driving for Uber and didn’t disclose it. That cancellation goes on your record, making it even harder and more expensive to get insurance in the future.
Being honest with your insurer from the start helps protect you from losing your coverage entirely.
What Is Rideshare Insurance?
Rideshare insurance is an add-on to your personal auto policy. It’s usually called a “rideshare endorsement” or “TNC coverage.” It’s not a full commercial policy, and it’s not expensive. For most Uber drivers, it’s the simplest way to close that Period 2 gap.
Here’s exactly what rideshare insurance does:
- Fills the gap when your app is on, but you haven’t accepted a ride
- Extends your personal coverage to cover commercial activity during that period
- Keeps you compliant with your personal insurer’s terms so they don’t cancel your policy
- Covers damage to your own vehicle during Period 2, not just liability
Most rideshare endorsements cost between $15 and $30 per month, depending on your carrier and your driving record. For drivers who are out on the road regularly, that’s a small price to pay for real protection.
Affordable Options for Maryland Drivers
If you’re worried about adding another cost to your budget, we understand. A lot of our customers come to us after being turned down by other companies or dealing with financial hardship. We don’t judge. We help.
At Roadway Auto, we specialize in helping Maryland drivers find coverage that fits their budget and their situation. Whether you have a clean record or you’ve had tickets, accidents, or lapses in coverage, we can help you understand your options.
We work with MAIF for drivers who have been rejected elsewhere. We can also help you add a rideshare endorsement to your policy if you’re driving for Uber or Lyft. The key is to make sure you’re protected so that one bad day doesn’t turn into a financial disaster.
Talk to Someone Who Understands
If you’re driving for Uber in Maryland or thinking about starting, talk to an insurance agent before you hit the road. Be upfront about what you’re doing. Ask if they offer a rideshare endorsement.
Not all agents understand rideshare insurance. We do. We’ve been helping Maryland drivers since 1992, and we’ve seen what happens when drivers don’t have the right coverage.
Call us at 301-476-1183 or contact us online to talk about rideshare insurance. We’ll help you figure out what coverage you actually need.