Uber said on May 14 that state-mandated insurance requirements for ridesharing can account for as much as one-third of a rider’s fare in high-requirement states and 10% or less in most others across the country.
Uber published an overview examining how U.S. rideshare insurance requirements affect rider fares and driver earnings. The company said it buys commercial auto insurance to satisfy state laws so drivers do not have to purchase separate high-premium annual policies.
Missouri law requires transportation network companies to carry primary liability insurance of at least $1 million when a driver has accepted a ride or is transporting a passenger. The coverage applies during accepted and active rides.
Uber reported that its U.S. Mobility insurance costs per trip rose more than 50% over the past three years even as the platform recorded a decrease in crash rates from 2017 to 2022. In most states, mandatory insurance accounts for 10% or less of the average rider fare, while New Jersey is near one-third and New York is at 27%.
Uber said its motor vehicle fatality rate remains below the national average per 100 million vehicle miles traveled. The company also said it continues to advocate for changes to transportation network company insurance requirements to reduce costs while keeping trips covered.
