The state of New Jersey has a no-fault insurance system in place for medical bills relating to a car accident. No-fault insurance means that each party’s own insurance company is responsible for covering their medical expenses, regardless of who was at fault for the accident. Reference our recent articles for a more in depth dive into the specifics of the no fault system. In the digital age and rise of smartphones, we are fortunate to be able to order rides with the tap of a few buttons. Although this is extremely convenient, it raises concern over the question of insurance. Rideshare companies such as Uber and Lyft typically provide insurance coverage for their drivers and passengers. The insurance coverage provided by rideshare companies is generally contingent on the driver’s status at the time of the accident. Here’s how it typically works in New Jersey:
App Off: When a driver is not actively using the Uber or Lyft app for work purposes, their personal auto insurance policy covers them in the event of an accident.
App On, Not on a Ride: When a driver has the app turned on but hasn’t accepted a ride request, the rideshare companies insurance is applicable. New Jersey law requires that the rideshare company provide $50,000.00 per person and $100,000.00 per incident for bodily injury coverage and $25,000.00 for property damage.
On a Ride: When a driver is actively transporting a passenger, the rideshare company’s insurance typically provides primary coverage for both liability and property damage. New Jersey law requires that the rideshare company maintain $1,500,000.00 in liability and UM/UIM coverage for such accidents.
It’s important to note that the specific terms and coverage limits for Uber and Lyft drivers can vary, and the details of their insurance policies may change over time. Therefore, it’s crucial for rideshare drivers in New Jersey to carefully review their insurance policies and stay informed about any updates from the rideshare companies. In addition, New Jersey’s no-fault insurance system means that medical expenses related to injuries sustained in an accident, regardless of fault, are typically covered by the injured party’s own personal injury protection insurance. However, if you are a passenger in an Uber of Lyft vehicle, your PIP coverage will not apply.
Navigating New Jersey Uber and Lyft Accidents: Trust Harrell Injury Law for Expert Legal Guidance
As previously mentioned, it is important to keep in mind that insurance regulations and policies are subject to change, so it’s advisable to consult with an insurance professional or legal expert who is up to date on the latest rules and regulations in New Jersey if you have specific questions or concerns about Uber and Lyft accidents within the state. For personalized guidance and legal assistance regarding your rights and potential claims, consult with an experienced legal expert who is up-to-date on the latest rules and regulations. The Harrell Law Firm stands as a beacon of expertise in rideshare accident litigation in the area. Contact us today for a thorough review of your case and dedicated representation by an Uber & Lyft accident lawyer that ensures your rights are protected amidst the complexities of insurance claims in rideshare accidents.
Leigh A. Raffauf
Partner, Harrell Injury Law