Last week, Uber drivers got a message saying their deductibles were going up from $1,000 to $2,500 effective March 1, 2021. This change will align with Uber’s main competitor, Lyft, that has required a $2,500 deductible since the beginning.
If you are renting a vehicle through their Vehicle Marketplace, some vehicles are only subject to the $1,000 deductible.
So, what does this mean for drivers? As with any insurance deductible, it’s a good idea to have that amount on hand should anything happen to you on the road.
Instead of having $1,000 at the ready in case of an accident, you’ll need to be able to produce more than double at $2,500 no matter which ridesharing platform you drive on.
Driver Reactions
Of course, once the message came through, drivers took to Reddit:
One person stated, “Damn. One of the reasons I liked Uber over Lyft was a deductible that wouldn’t put you out of business with one accident. Oh well.”
Another pointed out, “Yeah, unfortunately, the writing was on the wall. Remember a few months ago when they sent out surveys to drivers asking how they feel about a $2500 deductible? They know they will lose very few drivers over this. I’m actually surprised it didn’t happen years ago to be completely honest.”
On a different thread about the same topic, this Redditor said, “[Uber] just making themselves save costs and keep themselves at the same coverage level as Lyft. Heads they win, tails you lose.”
What Can Drivers Do?
For one, check with your insurance provider. Don’t have one? Visit our rideshare insurance page.
Some companies offer a rideshare endorsement (which we highly encourage all drivers to have), also have a stipulation where they will let you pay their deductible (say, $500 or $1,000) instead of the Uber or Lyft deductible. Allstate offers this, and other companies in your state may offer something similar.
You would file any claim through your regular insurance and they will take care of the rest for you. But again, make sure you check with your insurance to see if they will do this for you. Not all insurance companies are created equal. Some offer extra benefits like this to their insured and others do not.
One Reddit poster said he drives liability-only vehicles, typically meaning there’s no value in the vehicle should it get into an accident. That way he wouldn’t have to pay a deductible. He would just take the loss and call it good.
While it may not be the nicest ride for your passengers, it’s one way to not be devastated by a deductible cost you can’t afford.
Readers, what do you think of this news? Does it impact your interest in driving for Uber?
-Paula @ RSG
