Rideshare Coverage

As rideshare services such as Uber and Lyft have increased in popularity, we are seeing a lot of accidents caused by an UBER/LYFT driver. We are also seeing accidents where either an UBER/LYFT driver or passenger are injured. Here’s a handy post so you know what insurance coverage applies if you’re involved in such an accident:

1. Not logged onto App – the driver’s personal insurance policy applies. If you want to check out my post on coverages on a personal insurance policy, click on this link.
2. Logged into App Waiting for Passenger Request – This is where problems might arise. UBER/LYFT do not cover their drivers during this period. Also, many personal policies will not cover the driver during this period as the driver is considered “working”. Most personal policies will offer a separate Rideshare Coverage Policy. If a driver causes an accident without applicable coverage, you would look to your own auto insurance and the UM/UIM coverage. Please see this link explaining such coverage.
3. Driving to Pick Up Passenger – At this point, the UBER/LYFT coverage begins. However, the coverage is limited. UBER/LYFT provides $50,000.00 per person $100,000.00 in bodily injury and $25,000.00 for property damage.
4. Driving with Passenger – UBER/LYFT coverage provides $1,500,000.00 in bodily injury, $10,000.00 in medical payments for the driver only (the passenger gets no medical payment coverage) and $1,500,000.00 in UM/UIM coverage.

Solutions:

If you are an UBER/LYFT driver, speak to your insurance company about Rideshare Insurance. Make sure you are covered when you are logged in waiting on passenger requests.

If you are in an accident as an UBER/LYFT passenger, you will not get Personal Injury Protection. Again, see this link for a description of PIP. However, you will receive UM/UIM benefits through the UBER/LYFT policy. Most of these UM/UIM policies claim they step-down to the passenger’s personal policy. You should speak with an attorney to ensure you protect yourself from this claim.

If you have any questions, please contact me.