Uber and Lyft have become popular modes of transportation in the United
States. Requesting a ride on a smartphone app is quick, easy, and often
more cost-effective than getting a ride from a taxi. In addition, many
people think that these rideshare services are much safer.
But what happens when you are involved in a
car accident with an Uber or Lyft driver? How does insurance coverage work? It depends
on the specific circumstances of the collision.
Uber Insurance Policy
Uber has a three-tier insurance structure that covers their drivers and
passengers. If a driver is offline and not on duty to pick up passengers,
he or she will be covered by their own personal auto insurance policy
in the event of a crash.
If a driver is online, but has yet to pick up any passengers, he or she
is covered by their own insurance policy plus additional contingent liability
coverage which goes up to $50,000 per injury for a total of $100,000,
as well as up to $25,000 in property damage (if the driver’s personal
insurance doesn’t cover the accident).
Finally, drivers who are driving with a passenger are covered by a $1 million
liability coverage policy and a $1 million uninsured/underinsured coverage policy.
Lyft Insurance Policy
Similar to Uber, Lyft has its own set of three “periods” in
regards to ridesharing accidents:
- Period 1 – A driver has their Lyft app open, but hasn’t matched
with a passenger
- Period 2 – A driver matches with a rider and he or she is in route
to pick the passenger up
- Period 3 – A driver has a passenger in the vehicle and then drops
the passenger off at their destination
Period 1 offers low liability limits - $50,000 per person bodily injury,
$100,000 per incident, and $25,000 for property damage – and comprehensive
and collision coverage are not offered. With periods 2 and 3, liability
coverage is plentiful - $1 million liability policy – but collision
and comprehensive is only contingent, meaning that a rider must make a
claim with his or her own personal collision and comprehensive policy.
Lyft’s policy has a $2,500 that a rider must pay if his or her insurer
denies the claim.
If you suffered an injury in a
ridesharing accident or a collision caused by an Uber or Lyft driver in New York,
contact our New York City personal injury attorney at
Belushin Law Firm, P.C. today.