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 & Lyft Insurance Policies
Both of the main ridesharing services have similar insurance policies, which are comprised of a three-tier structure that covers their drivers and passengers.
The first tier addresses drivers who are offline and not available for pickups. If an accident occurs, he or she is only covered by their own personal car insurance policy.
The second tier addresses drivers who are online but have yet to pick up any passengers. In the event of a crash, each insurance policy offers $50,000 per person bodily injury for a grand total of $100,000, in addition to an extra $25,000 for property damage.
The third tier addresses drivers who are in route to pick up the matched passenger, as well as situations when the drivers have passengers in the vehicle. In these cases, liability coverage is $1,000,000. However, collision and comprehensive is only contingent, which means that a passenger must make a claim with his or her own person collision and comprehensive policy.