With rideshare companies the norm in many cities, one things that consumers may not know about is what type of insurance a company carries in the event of a wreck. All rideshare companies are required to provide some type of insurance coverage for their drivers in addition to personal coverage even when the drivers work as independent contractors. This applies to both Lyft and Uber drivers. There will be some instances, however, when the driver will need to utilize their personal insurance coverage in addition or instead of the company’s insurance.
Here are some key facts about Uber and Lyft insurance coverage:
Uber Insurance Policies
- $1 million of liability coverage per incident. Uber holds a commercial insurance policy with $1 million of coverage. Drivers’ liability to third parties is covered as soon as the driver starts the trip. This policy is expressly primary to any personal auto coverage.
- $1 million of uninsured/underinsured motorist bodily injury coverage per incident. In the event that another motorist causes an accident vehicle and doesn’t carry adequate insurance, this policy covers bodily injury to all occupants of the rideshare vehicle.
- $50,000 of contingent comprehensive and collision insurance. If a ridesharing driver holds personal comprehensive and collision insurance this policy covers physical damage to that vehicle that occurs during a trip, for any reason, up to $50,000 and with a $1,000 deductible.
- No fault coverage (e.g., Personal Injury Protection)is provided in certain states at similar levels as limos or taxis in those cities.
- $50,000/$100,000/$25,000 of contingent coverage between trips. During the time that a ridesharing partner is available but between trips, most personal auto insurance will provide coverage. The driver has an additional policy that covers driver liability for bodily injury up to $50,000/individual/accident with a total of $100,000/accident and up to $25,000 for property damage.
Lyft Insurance Policies
- Contingent liability coverage is designed to provide coverage when the app is in driver mode before the drier received a ride request. The policy has a $50,000 maximum per person, $100,000 maximum per accident, and a $25,000 maximum for physical damage. There is no deductible under this policy.
- Contingent collision coverage is designed to cover physical damage to your vehicle resulting from an accident as long as the driver obtained collision coverage on his personal automobile policy. The policy has a $2,500 deductible and a $50,000 maximum for physical damage to the vehicle.
- Contingent comprehensive coverage is designed to cover physical damage to your vehicle resulting from a non-collision event (for example a
fire, vandalism, a natural disaster, etc.) as long as the driver bought comprehensive coverage.The policy has a $2,500 deductible and a $50,000 maximum for physical damage.
- In the event of an accident with a driver who is uninsured or underinsured and is ultimately at fault for bodily injury caused to a driver, passengers, or third parties, Lyft’s UM/UIM coverage will apply for up to $1M per incident. There is no deductible on UM/UIM claims.
For more information or to speak with an experienced Lyft accident lawyer or Uber accident lawyer, don’t hesitate to get in touch with us. At Rideshare Law Group, we understand the complexities of rideshare insurance coverage and know how to get you the compensation you need.