Uber driver insurance

Uber burst onto the British taxi scene in 2012 and since then has sometimes even replaced the word taxi as a noun in its own right. It is a ride-hailing app which connects you to your driver directly without having to hail one down or having to call a booking service. Using your phone’s GPS, it finds your location and connects you to a nearby driver. It even allows you to choose what sort of car you want. All done by card and through the app, it is the modern taxi and taking over every major city in the world.

There are many reasons people become Uber drivers, such as:

• It allows you to be your own boss, working as much or as little as you like. Essentially you start work as soon as you log into the app.
• These flexible hours allow you to do it full time or even part time as a supplemental income.
• An excellent job for sociable people, and it will enable you to be your own boss.
• Because passengers are rated as well, it allows you to avoid passengers who might cause you trouble.

Although it is relatively straightforward, there are many requirements needed before you can apply to be an Uber driver. These vary from country to country, but we will examine the rules in the UK:

• You must be over 21 years old, have a right to work in the UK, and have a valid UK driver’s license
• After that, you need to pass a full medical evaluation from your GP, an enhanced DBS check and a local map test

Once you satisfy these criteria, Uber has its own set of requirements:

• You need to obtain a private hire license, which can cost around £300 depending on what area you live in
• There are a list of pre-approved cars on the Uber website, or you can rent one of theirs for around £200 a week
• Make an appointment for an interview with Uber, which could take months to process.

Even though they don’t like to use the term ‘taxi service’, insurance providers will see Uber drivers in that way and require them to have that type of insurance. Uber doesn’t offer its own specific insurance but has connections with different insurance companies such as Acorn and Fare Cover. These are advantageous because you will not need to upload any of your own car insurance documents to your Uber account. But you should still shop around and compare car insurance from different companies before taking out a policy with one of them.

To be an Uber driver, you will need private hire vehicle insurance with cover for hire and reward. This is insurance specific for private hire cars and therefore cannot be used for cabs that are hailed in the street. You should also make sure your Third Party Liability insurance (insurance for if you hit someone or something) is comprehensive.

As with any insurance policy, the key to getting a good rate is to do as much research as possible. Here are a few tips that you can bear in mind:

• Paying annually, because of the interest on monthly payments, will make your overall pay-out less.
• Installing security cameras and dashboard cameras will make it cheaper as you will be seen as a lower risk to your insurer.
• Securely parking your car overnight, for example in a garage instead of on the street.