Uber and Lyft have become two of the most popular “rideshare”
or car-hire services. People must download the Uber or Lyft app to their
smartphone and request a ride from a driver through the app.
However, sometimes these drivers can cause
car accidents. On the other hand, other drivers negligently cause collisions with an
Uber or Lyft vehicle. Regardless of fault, there are specific insurance
and legal issues which you must be aware of if you are involved in a ride-sharing
How Does Car Insurance Work for Uber & Lyft Drivers?
Both companies require all of their drivers to carry personal car insurance
which meets or exceeds state minimums, especially regarding liability
coverage. Additionally, Uber and Lyft both have $1 million insurance policy
in liability and
uninsured motorist coverage per incident. Both companies have adopted similar policies in
regard to providing insurance protection for accidents which happen when
a driver has accepted a trip and/or is transporting a passenger.
The following is a breakdown of ride-sharing insurance coverage:
When the driver is in his/her vehicle but is not logged into the Uber/Lyft app – The driver’s own personal car insurance coverage will apply
to any accident which occurs, meaning Uber’s/Lyft’s insurance
coverage will not go into effect.
When the driver is logged into the app, but has yet to accept a ride request – Uber/Lyft provides liability coverage for any accident that is
caused by their driver. It only covers losses sustained by others who
were injured or had their property damaged. However, it does not cover
the Uber/Lyft driver’s own property damage or injuries.
When the driver has accepted a request – Uber/Lyft liability coverage in the amount of $1 million, which
applies to injuries suffered by an Uber/Lyft customer who is riding in
an Uber/Lyft vehicle whose driver causes a crash. Additionally, it would
also apply to injuries and vehicle damage sustained by anyone who is hit
by an Uber/Lyft car when the Uber/Lyft driver is found to be to blame
for the collision.
For more information,
schedule a free consultation with our Kingston personal injury lawyers at
Mainetti, Mainetti & O’Connor today.