Uber Insurance – It’s not nuclear science – it’s worse
I had no idea when I looked at Insurance for Uber Drivers that it would be easier to understand how to build my own Nuclear Power Station.
There is so much confusing information around that I decided to put together a simple and hopefully short guide to help us both.
To find out about Insuring an Uber car my first option was to “phone a friend” who had been an Uber Partner for several months.
He said “don’t worry, just drive it on your ordinary insurance and don’t bang into anybody”.
Whilst the second part was sound advice the first was rubbish.
In fact it was more than that it was dangerous rubbish.
Now I’m not an insurance expert and anything that I say should be checked out with someone who is, and who has experience of what Uber drivers need.
But having said that “I’m no expert” I will try and do two things:
- Explain what you will need and the pit falls you may encounter.
- I’ll also try to point you in the direction of someone who can help you with everything you need for full cover.
Doesn’t Uber provide drivers with cover?
This, is confusion number one so I’ll try and clear it up.
Uber have an insurance policy that will pay out in the event of an accident.
And it’s a big BUT.
They will only do this once your insurance has refused to pay.
It is a safety net to stop some of the bad publicity that they were getting about the safety of passengers.
Uber underwriters will contact your insurance. At this point your insurers will slam down the shutters if you only have ordinary insurance.
Not only will they not payout, because you are driving for hire or reward which is not allowed, they will probably refuse to insure you in the future.
Just to make things better they will mark your record so that other insurers may well do the same.
So what type of insurance do I need ?
In a nutshell “ Private Hire Vehicle Insurance” which covers you for driving for hire or reward.
In addition to insuring yourself, your riders and any vehicle that you may hit you will require Public Liability cover for customer injury or loss.
There has been a lot of talk about GAP insurance to cover drivers when they are driving to a preferred pick up location but not actually on a call. You can forget about this as you will need full Commercial cover anyway.
If you need any confirmation that you need this type of Insurance then, look at the description of an Uber driver which Uber themselves wrote.
This quote is from the Bristol Uner X description. An Uber driver is defined as “ A professional driver with a private-hire licence and COMMERCIAL INSURANCE “.
Please stay within the Law
There are some people advising that drivers take out commercial insurance to provide the documentary proof required by Uber and then cancelling it.
This is illegal and can be detected very quickly.
You could well find yourself losing your licence, paying a fine and losing your car the first time that you drive past a police ANPR vehicle.
Yes that’s the police car fitted with a camera and “ Automatic Number Plate Recognition”.
Many countries are encouraging police to check all Uber vehicles to make sure that they have valid and correct insurance. The UK could well be one of them.
Conclusion: If you’re not prepared to apply for commercial insurance we should look for another job for you.
Ok so what’s the Damage
Sorry that‘s an unfortunate expression in insurance.
Are you ready, brace yourself.
Commercial Insurance is not cheap,.
In fact it’s quite the opposite. Here’s an example.
Deborah has a BMW 3 Series and was happy to pay £180 for her normal private use car policy. As an Uber driver she was quoted £ 5,000 per year.
Eventually, after much search and comparison, she managed to get the cover for £ 1,800.
This is quite a difference.
Another driver with a BMW 5 Series worth £15K, driving for 8 years and pco (Public Carriage Office Licence ) for 5 years paid £ 1,990. – Ouch!
Yes, I’m afraid these quotes are typical.
Drivers have been quoted up to £ 6,000 per year and the average appears to be £ 2,000.
Unfortunately the cost of commercial cover rarely finds it’s way into the calculations about how much a driver can expect to earn.
The argument that we are often given for this is that, we would have to pay for insurance in any case even is we didn’t drive for Uber.
This is true but at as much as ten times the cost this argument doesn’t hold water.
If you spread it over the year £ 2,000 is £ 166 per month or just under £ 40.00 per week.
And that’s without interest if you use a loan.
So if you are thinking of Ubering just a few hours a week you may well find yourself out of pocket.
It is this situation that has led some drivers to take the awful risk of working with inadequate insurance.
How can you keep Insurance costs Down?
There are a few things that help, but I’m afraid that either you’ve got them, or you aint.
There’s not much you can do about it.
First – No Claims Bonus.
More bad news here. The no claims bonus that you carry for your personal vehicle insurance cannot normally be transferred to a commercial one.
So you will be paying full percentage.
If you search round and use an Insurance Comparison Site with a special Uber Driver Section you may be able to get some of your no claims transferred but it’s unlikely that you will get more than a couple of years maximum.
Still every little helps.
If you have had a private hire licence for some time and are an experienced car driver some insurers will take this into account and reduce you premium.
For young, inexperienced drivers and those new to private hire I’m afraid there is little we can do.
How to Get a Competitive Quote Fast
You should see this
Select the First result “cheap Uber Taxi Insurance
You arrive here and Away you go – Cheap Specialist Uber Driver Insurance Quotes
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