Uber Driver Insurance
Uber drivers are responsible for picking up passengers and driving them to their desired location. This is different from traditional taxi drivers as the entire process is done via the Uber app, whereby appointments are prearranged.
This makes Uber drivers private hire drivers. The insurance is more expensive than it would be for a regular driver because there are more risks involved when driving higher mileages, for longer hours and coming into contact with more people. However, this does not outweigh the risk of an accident that may cost thousands without insurance. Whether you are concerned about your safety, your clients, or your car, there is a policy to protect against claims.
If you would like to read more information or learn more about the pricing of business insurance, you can do so here.
Why Do I Need Uber Driver Insurance
As it is becoming increasingly easier to become an Uber driver, more people have signed up than ever. More than 50,000 drivers are employed every month as an easy and fast way to make money.
However, this indicates that insurance is more vital than ever because covering the costs associated with car accidents or injuries with no external help can be incredibly expensive, with even one claim being detrimental for the future.
What Types of Uber Driver Insurance Are There?
Public liability insurance
Public liability insurance is instrumental in any profession because it protects the first party (the uber driver) from the third party’s claims (the client) that they were injured or had their property destroyed. By the end of 2020, almost 93 million passengers had signed up for the Uber app, which magnifies how prevalent the company is and how common is it for people to use the services.
Whilst this is great for revenue, it also increases the risks of accidents. For example, clients could get hurt during the journey and, consequently, file a lawsuit or demand compensation for the medical attention they required as a result. This could be a shoulder injury from the driver pressing the breaks recklessly or even coffee that was spilt and caused third-degree burns.
Furthermore, if this accident caused damage to property, like breaking a phone or laptop, the driver would be held liable. Public liability insurance covers these claims so that the driver doesn’t have to.
Business car insurance
Business car insurance seems like the most prominent type of cover for an Uber driver, which would be an entirely correct assumption. The risks of driving are many because they can be the driver’s fault, the fault of another driver, or even the fault of both. Even if you are assured of your skills, it is worthwhile considering that other vehicles on the road could impact your driving.
Nevertheless, an Uber driver is held accountable for any accident that could damage their vehicle or injure the client, so insurance should be obtained. The average quote for this cover is approximately £118 annually, but premiums can be reduced if the car is used only for commercial purposes and not leisure.
Other factors to consider are any traffic violations recorded on the licence, the make and model of the car, the cost of repairs, the sex and age of the driver and any other elements affecting the vehicle’s value. Business car insurance usually covers the cost of repairs, repairs for damage to another vehicle, and medical expenses; however, this varies on the insurer.
Cyber insurance for a profession that revolves around technology is vital because any issues surrounding the app, GPS, or other devices improve the quality of the business. Not only do drivers use their phones for receiving appointments, but they also get the location of their passengers and their contact information if they cannot find them.
It is also unrealistic to expect a driver to know every route in the city; therefore, using a satellite can also come in handy. Cyber insurance protects the driver in case their electronic devices are damaged, for instance, due to a malware attack or virus, which may compromise their passengers’ private information. Many clients pay with a credit card, which can be stored via the app, and if this data is hacked, they must be notified immediately.
The entire software must also be replaced to ensure safety. It is crucial to have a cover for this, as claims in 2021 were higher than the previous year, showing just how common these accidents are becoming and why we should have protection if they happen to us.
In conclusion, working as an Uber driver can be an enriching experience, essentially earning money whilst gaining invaluable social skills and experiencing new locations each day. With this being said, the accidents associated with vehicles must be addressed, and covers should be considered to decrease the financial loss.
Find out more about the importance of insurance here.
Other useful links about Business Insurance:
Project Manager Insurance
Property Manager Insurance
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