I was T-boned by a driver who ran a red light. My car was totaled, and I had whiplash. The other driver had no insurance and no license. I thought, “Uber has a $1 Million policy, I’m safe.” Wrong. Uber’s policy covered my liability (if I hit someone else), but in my state, they had rejected “Uninsured Motorist” (UM) coverage on the fleet policy. I got $0.
Key Takeaways
- Liability ≠ Protection for You: $1 Million Liability protects your assets from lawsuits. It does not fix your car or pay your medical bills if the other guy is at fault and uninsured.
- State-by-State Rules: In many states, Gig companies are legally allowed to reject UM/UIM coverage to save money.
- You Need “UM/UIM” on Your Personal Policy: And you need the endorsement to make sure it extends to Period 1/2/3.
- Collision Deductibles are High: Even if Uber fixes your car under Collision, you owe the $2,500 deductible first.
The “Why”: The UM Rejection
Insurance is expensive. To keep costs down, TNCs (Transportation Network Companies) often select the absolute minimum coverage required by state law. While they are forced to carry high Liability limits, many states do not force them to carry Uninsured Motorist Bodily Injury (UMBI) or Property Damage (UMPD).
So, when an uninsured driver hits you, the TNC policy says: “Not our fault, not our driver’s fault. Go sue the uninsured guy.” (Who has no money).
[IMAGE: Map of US States highlighting which require TNCs to carry Uninsured Motorist coverage]
The Investigation: Where is the Gap?
I looked at the certificates of insurance for major rideshare companies in Florida, California, and Texas.
- California: UM/UIM is generally required or provided ($1M).
- Florida: Uber/Lyft often reject UM coverage on the group policy because it’s not mandatory for TNCs in the same way.
- Texas: Often rejected or minimum limits only.
Comparison Table: Who Pays Medical Bills (Uninsured Crash)?
| Coverage Source | Does it Pay? | Notes |
| At-Fault Driver | NO | No Insurance |
| Gig App Policy | NO (Often) | Unless state mandated |
| Personal UM/UIM | YES | Only if you have the Rideshare Endorsement |
| Health Insurance | YES | Pays medical, but not lost wages/pain |
Step-by-Step Action Plan
- Check Your State Law: Google “Uber insurance requirements [Your State] Uninsured Motorist.”
- Max Out Personal UM/UIM: On your personal policy, set your Uninsured Motorist limits to 100/300 or higher.
- Confirm the Endorsement extends UM: Ensure your Rideshare Endorsement allows your personal UM coverage to apply while you are working. This is your only safety net.
FAQ
What is the difference between UM and UIM?
UM (Uninsured) is for when the other driver has no insurance. UIM (Underinsured) is for when they have state minimums (e.g., $10k) but your bills are $50k. You need both.
Does ‘Collision’ cover me if an uninsured driver hits me?
Yes, Collision covers the car repairs (subject to the deductible). But Collision does not pay for your broken arm or lost wages. That’s what UM is for.