Car Accident Lawyer

Uber and Lyft, the top two rideshare services in the U.S., are praised by customers for their user-friendly apps, reasonable prices and timely arrivals. Drivers enjoy the “gig” employment as well, working as independent contractors. However, as a driver, you need to be aware of how your accident protection is handled differently through Uber and Lyft. Our friends at Hall-Justice explain the various insurance limitations for Uber and Lyft drivers.

1. As a Rideshare Driver, Your Personal Auto Policy Might Not Cover You

As an Uber or Lyft driver, your vehicle is used for work, not for personal use. So unless you have a commercial auto insurance policy, your damages will not be covered under your personal policy. Rideshare companies recommend purchasing their supplemental insurance for additional expenses that are not covered by Uber or Lyft. To make sure you are protected as a driver, check your personal policy to make sure you have full coverage for off-duty use, and also find out about the limits and restrictions for ridesharing. 

2. Compensation Amounts Are Determined by Location of Passenger and App Status

Uber and Lyft stipulate that in order for drivers to be eligible for the highest level of coverage ($1 million), their apps must be “on” and they must be either waiting for passengers or already have one (an “active ride”). If drivers are seeking riders at the time of the accident, they are still eligible for coverage but it is much less ($50 thousand). However, if they can prove that a ride was scheduled before the incident, drivers might be eligible for the higher amount. If drivers are off-duty and have turned off the rideshare app, then they are not covered by the company’s insurance. They must use their personal health insurance to pay for injuries and hopefully, they purchase commercial or rideshare supplemental coverage to help with their other expenses.

3. Rideshare Companies Will Not Cover Accident Injuries If Their Driver Is At Fault

As long as the other driver is at fault, an Uber or Lyft driver is eligible for compensation for their bodily injuries. However, if the rideshare driver is responsible for the accident, neither their personal auto policy nor Uber or Lyft will pay for injury expenses. For this reason, Uber and Lyft highly recommend that drivers purchase their offered supplemental insurance.

Accidents occurring with rideshare drivers may not be clear-cut and might be more difficult to resolve with insurance companies. Instead of handling insurance battles and lengthy resolution processes on your own, contact a local car accident lawyer specializing in auto accident personal injury claims.