What insurance do you need to be an Uber driver?

As you’ll no doubt have figured out after even minimal research, becoming an Uber driver isn’t quite as simple as just downloading an app and starting to drive. Before you can get yourself up and running, you’ll need to take care of a fair bit of admin – including, amongst other things, getting yourself the right insurance.

Here, we take a closer look at exactly the kind of motor insurance you’ll need to drive with Uber, along with some other bits of key information you should know. By the end, you should know what it is you’ll need to do to get yourself started. 

 

What kind of insurance is typically required?

To drive as an Uber driver, you will typically need to make sure that you are covered by several different kinds of insurance policies. 

Private hire insurance

To drive as a commercial driver, whether for Uber or any other app, you will typically need to get some kind of pco hire insurance. Also known as hire and reward insurance, this kind of policy is what’s needed in order to take bookings and pick people up in exchange for money. This is arguably the most important insurance that you’ll need to operate as an Uber driver. 

Public liability insurance

In addition to your private hire insurance, you will need to make sure that you have some kind of public liability insurance in place. This is to cover any claims that are brought against you by members of the public in relation to your driving.

This could be for property damage, but also for injuries. For example, if someone hurt themselves getting out of your car, if they tried to make a claim against you, your public liability insurance would cover this as well.

Luckily, a lot of private hire policies come with public liability insurance, especially those approved by Uber. It’s important to check nonetheless, so that you’re not left in a tricky situation. 

Social, Domestic & Pleasure

If you also plan on using your car for non-work purposes, such as buying groceries or going to see a friend, then you’ll potentially need a Social, Domestic & Pleasure (or SD&P) insurance policy as well. This is just your standard kind of private car insurance, and will be used for all non-work car journeys, including commuting. 

 

Uber certified insurers

Over the past few years, Uber have increasingly insisted that you use one of the insurers that they have directly authorised. This especially applies to Uber drivers who are operating in the London area. 

This is partially because Uber uses something called the Instadoc system, in order to speed up how quickly they can verify their new drivers. Through this system, Uber is able to get insurance documents straight from the insurance company itself, meaning that they don’t have to independently verify the documentation of every single driver who signs up to drive on their platform. 

Authorised insurance providers include: 

• Zego
• Nelso
• Inshur
• Antilo
• Acorn/Haven

If you’ve found another provider and you’re not sure whether they’re authorised by Uber or not, you should reach out to both the provider themselves and to Uber, so that you don’t end up wasting any money. 

 

What’s covered by one of these insurers?

What’s covered exactly by one of these Uber authorised insurers will depend slightly on the policy you get. However, it will often include:

• Public liability insurance, that protects you against claims made against you by members of the general public.
• Third party cover, which protects you against claims made by other drivers whom you get in an accident with. You can often also increase this to include fire and theft, or everything (known as comprehensive) as well.
• Personal injury, which will cover some of the costs if you are injured while at work. 
• Legal costs, which will cover the legal fees related to fighting any of the claims that you’re involved in while at work.

It’s vital that you read the fine print of your policy, so that you’re not left surprised by an unexpected lack of cover at any point. 

 

Private vs public hire insurance

You may have noticed that there are two similar kinds of insurance that are available – public and private hire insurance. It’s important to note that these are distinct kinds of insurance, and you need to get the right one. 

With Uber, the car needs to be booked in advance via the app. As a result, it falls into the category of private hire. Black cabs, on the other hand, can be pulled over in the moment, without booking. As a result, they fall under the category of public hire. 

As an Uber driver, you only need private – not public – hire insurance, as you cannot operate in the same way as a black cab does.

 

How much will it cost?

The cost of insurance needed in order to drive for Uber can vary dramatically. Factors that might influence the end cost include your age and number of years driving, the kind of vehicle you’re driving and how much it’s worth, the passenger capacity of the vehicle, and where you will be driving and storing the vehicle.

A very rough estimate could be around £1,600 per year, however, you could end up spending more or less than that. If you also use the vehicle for personal use, then you may have to add the cost of Social, Domestic & Pleasure insurance, which could be anywhere from a few hundred pounds to a few thousand, again depending on the variables outlined above.

Insurance is a must-have for Uber drivers, and you’ll have to factor in the cost from the very beginning. Check whether you’re able to spread the cost out over the year, paying monthly, and then see how much that will take out of your predicted earnings. When you break it down week by week, it becomes a lot more reasonable, and it’s important that you have the right cover in case something happens to you.