Recently, Uber decided to roll their Driver Injury Protection program out to even more states, meaning more drivers may be seeing a total increase to their earnings. In this update, senior RSG contributor Christian Perea outlines what this pay increase is for and its potential impact on drivers in the future.
Recently Uber announced a 5 cent per mile pay increase in order to fund Driver Injury Protection insurance. Uber announced they are doing this in partnership with OneBeacon and Aon as a program that could eventually expand nationwide. Drivers in these states will be able to sign up for injury protection and pay into a fund OR simply collect an extra $0.05/mile. That’s obviously not a huge pay increase, but every little bit counts.
The program is unique because it shows how Uber may pilot other driver pseudo-benefit programs in the future. On-demand work has often been criticized because there are no traditional workplace protections for those who get injured on the job. This seems to be a good way to offer full-time drivers something valuable while allowing part-timers to opt-out.
The higher mileage rate is actually meant to offset the cost of the insurance though, so if you opt in you’ll have to pay $.0375 cents/mile for every mile you have an Uber passenger in your car (on trip miles). However, the Driver Injury Protection is active the entire time that you’re logged into the Uber app, even when you’re are waiting for a request. If you don’t not sign up, you will still enjoy the increase $0.05 increase in per mileage earnings. but no coverage.
The rate increase of $0.05/mile and option for Driver Injury Protection will be effective in the following states (recent additions are in bold):
- District of Columbia
- New Jersey
- North Carolina
- North Dakota
- South Carolina
- West Virginia
Uber is planning on rolling this program out to more states, but as it rolls out, it is approved on a state-by-state basis. If it’s not in your state yet, you may see it in the coming months.