Uber recently changed its age policy for most new drivers in California, increasing the minimum age requirement to 25. The company cited higher in-state commercial auto insurance costs as the primary reason for this policy update.
The revised age limit applies exclusively to drivers who intend to transport passengers via the Uber ride-hailing service. This does not affect those who sign up for food delivery through the Uber Eats platform. Prior to this change, individuals under the age of 19 were eligible to become Uber drivers.
Uber also specified that drivers under the age of 25 who activated their account before August 23, 2023, will be exempt from the new age policy and can continue to offer rides through the platform.
Uber cites increased insurance rates
In a statement explaining the policy change, Uber revealed that insurance rates for its drivers in California are much higher than those of private car owners or traditional taxi operators.
The company indicated that the diversified insurance requirements led to an increasing number of Personal injury attorney Focus on lawsuits against ride-sharing platforms such as Uber. This trend has contributed to the sharp rise in Uber’s commercial insurance costs in California, which have increased by more than 65% in two years. In response, Uber is increasing the minimum age for new drivers to 25 to mitigate higher insurance costs.
It is worth noting that commercial insurance is a requirement for ride-hailing drivers in all 50 US states. Uber provides its drivers with commercial auto insurance that includes a minimum of $1 million in liability coverage, effective once the ride is accepted. In contrast, personal car insurance policies do not usually extend to activities carried out on passenger platforms.
Uber’s main competitor, Lyft, already has a minimum age of 25 for its drivers.