Uber cites California as an example of the lopsidedness of insurance laws, stating that the $1 million liability commercial auto coverage requirements for Uber and other transportation network companies (TNC) is significantly higher than the $30,000 per person coverage required for personal vehicles. (Credit: Shutterstock)

Rideshare app Uber has launched an advertising campaign across several states it says have outsized auto insurance requirements for its drivers. One such ad is told from the perspective of an Uber driver who laments that rising insurance costs have resulted in higher prices for those who rely on ridesharing.

Most states require rideshare drivers to possess commercial auto insurance since most accidents in these situations would be excluded under personal auto policies. Uber drivers don’t have to purchase their own commercial auto policies, however, as the company purchases coverage for its drivers. To recoup these costs, Uber tacks on a service fee to be paid by the rider that covers things like insurance premiums, taxes and other mandated fees.

Recommended For You

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
  • Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
NOT FOR REPRINT

© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Brittney Meredith-Miller

Brittney Meredith-Miller is assistant editor of PropertyCasualty360.com. She can be reached at [email protected].