Harry here. By now, most drivers know that rideshare insurance will protect their car in the event of an accident, but what if you’re injured? Typically, Uber and Lyft’s insurance won’t provide coverage for injuries, but if the other driver is at fault, you could be entitled to a settlement. The process and rules are extremely confusing though, and if you’d like to learn more, head to our new Uber Accident Lawyer marketplace for more info.
Today, we’re featuring a guest post from one of our advertisers. Farid Yaghoubtil is a personal injury lawyer that specializes in dealing with rideshare drivers and has worked with Uber and Lyft drivers across the country.
You‘re driving a passenger on a sunny Tuesday and, while stopped at a red light, a vehicle slams into you from behind. It’s a scary situation but unfortunately, the more you’re out on the road as a driver, the more likely you are to get into an accident. You may be the best driver in the world but you can’t control other people’s actions.
Your passenger is hurt and you immediately contact the authorities. You also have pain in your neck and shoulder and need to get medical attention. What happens next?
Our law firm specializes in protecting the rights of Uber and Lyft drivers who have been involved in auto accidents and have suffered injuries. Rideshare companies maintain unique insurance coverage criteria and it isn’t always clear whether drivers are covered for injuries in situations like this. As a result, our attorneys have been asked to help decipher rideshare company insurance policies and the rights drivers may have to compensation for their injuries while at work.
The best way to understand your rights following an accident is with a few examples, but first you need to understand how Uber and Lyft’s insurance works. If you have any further questions always feel free to contact our law offices. All legal consultations and case reviews for Uber and Lyft drivers and provided by our attorneys free of charge.
Levels of Insurance Coverage for Uber and Lyft Drivers
- NOT logged into a rideshare app: If the rideshare app has not been turned on yet and you get into an accident, your personal policy would apply. In the State of California for example, Uber and Lyft Drivers must maintain personal policies with liability and uninsured/underinsured motorist coverage no less than 50 thousand dollars per person and 100 thousand dollars for each accident.
- Logged on to a rideshare app but waiting for a passenger request: If you’re online but haven’t received a passenger request yet, the rideshare company will assume liability coverage but in a limited capacity. Uber and Lyft provide coverage amounts of $50k injury/$100k total/$25k property but it’s contingent on your personal insurance policy. This means you will have to make a claim with your personal insurance policy before Uber/Lyft’s policy would kick in. In some states, like California, Uber and other rideshare companies are required to offer $200,000 on excess liability on top to the pre-existing policy of the ride share driver.
- En route or with a passenger: If you’re en route to a passenger or on an active ride at the time of an accident, Uber and Lyft provide $1 million in liability coverage as well as a $1 million in uninsured/underinsured motorist coverage.
Now that you understand the coverage, let’s take a look at a few scenarios involving Uber and Lyft drivers and what type of injury coverage the driver will receive:
You’re logged on to your rideshare app but waiting for a request. While at a stop sign you are struck by a pickup truck from behind, resulting in significant damage and personal injury. But the pickup truck does not carry insurance.
Under Uber’s insurance provisions, your own insurance coverage will come into play. Since the at fault driver does not carry insurance in this scenario, you would be able to access your personal insurance policy’s uninsured motorists coverage. BUT since most personal insurance policies do not cover livery, your claim would likely be denied if you told them you were logged in to Uber or Lyft during the time of the accident. If you had rideshare insurance however, your compensation would be limited to the amount of uninsured motorist coverage you maintain on your own policy.
In this scenario, the same facts above are present but the truck that hit you carries a $50,000 injury insurance coverage.
Because the other driver was at fault, you would be able to receive a maximum of $50,000 from the at fault parties insurance coverage. If the damages you suffered are greater than $50,000, then you would be able to receive recovery from your own underinsured insurance if your policies carries uninsured/underinsured motorist coverage in excess of the policy coverage of the at fault party.
In the state of California, underinsured motorist coverage cannot be stacked on top of the available at fault parties insurance coverage, meaning the amount of money available for recovery is reduced by the amount of recovery you have received from the at fault party. So if you had $100,000 of underinsured coverage, you would get $50,000 from the at fault party’s insurance and a maximum of $50,000 from your own insurance company.
You have not yet opened the rideshare app and are rear ended by a vehicle from behind. Under this scenario the rideshare company’s insurance coverage will not apply. Your only access to recovery will be through the at fault parties insurance and your own uninsured/underinsured motorist coverage.
While you have a passenger in the car, a vehicle slams into you from behind. In this case, you would need to exhaust the at fault driver’s liability insurance first and then the full $1 million dollar TNC liability coverage would apply.
Uber and Lyft’s insurance coverage in accidents can be difficult to decipher and, when you add injuries to the mix, even more so. Hopefully we have been able to shed some light on how the process works. If you have any further questions regarding this matter feel free to contact us. We offer all rideshare drivers with exclusive access to consultations from our attorneys across the country free of charge.
Was this information helpful and, if you’ve ever been in an accident while driving for Uber or Lyft, what was your experience?
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-Harry @ RSG
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