When it comes to busy cities with expensive parking and crazy traffic, rideshare apps such as Uber and Lyft have become the go-to to get from one side of town to the other without having to think about city driving and parking. In fact, Uber has become so popular that there is an average of over 1 million Uber rides taken every day. Meanwhile, Lyft is available for 95 percent of the U.S. population, including in San Francisco, where it was created. According to San Francisco City Attorney Dennis Herrera, there are an estimated 45,000 Uber and Lyft drivers in the metropolitan city. These apps may soon replace taxis, as their popularity surpasses that of the iconic yellow taxicabs in New York City.
Unfortunately, as the number of ridesharing drivers increases, so do the chances of getting in a rideshare-related accident. With rideshare, car insurance can be a bit confusing. Is it the driver’s insurance? Do the rideshare companies have overarching insurance to cover the drivers? Is it like taxicabs? We don’t think about the insurance policies for Uber and Lyft until it pertains to us, and this usually happens after car accidents.
Uber and Lyft Insurance Policies
One of the differences between Uber/Lyft drivers and taxi drivers is the fact that rideshare drivers are independent contractors. Which means that they are required to have their own personal insurance for their cars.
Nonetheless, both rideshare apps have $1 million dollars primary liability insurance; however, this may or may not apply to a particular accident. There are three possible routes when it comes to insurance; depending on the situation, you may or may not be covered by the companies’ insurance policies.
1) If There Is A Passenger In The Car & The Ridesharing App Is On
Lyft and Uber’s primary liability insurance will cover up to $1 million per accident. This is $1 million in both liability coverage and $1 million in underinsured or uninsured motorist coverage.
2) If There Is No Passenger In The Car & The Ridesharing App Is On
If an accident happens while a driver is working but has not picked up the passenger yet, the rideshare company is required by California law to provide insurance covering $50,000 per person and $100,000 per accident for bodily injury liability. Additionally, the company is required to cover $25,000 in property damage liability. With this contingent liability coverage, there is no deductible.
3) If The Ridesharing App Is Not On
If the ridesharing app is not on, the driver is not technically working for the company. Therefore, the driver’s personal insurance will be involved, not the ridesharing company’s insurance. The case will then proceed in the same manner as any other car accident.
After an Accident
If you have been involved in a car accident involving an Uber or Lyft and have been injured, you don’t have to navigate the new world of rideshare insurance on your own. It is important to follow the same steps that you would if you got in any other car accident. Make sure you seek immediate medical attention because although you may feel fine, there can be sustained injuries long after the accident.
Kuvara Law Firm is here to help you get the settlement you deserve, the way you deserve it, fast and fair. Just fill out the form on this page with your name, phone number, email address, and a brief explanation of your case to request more information and receive your free consultation. Your personal injury claim is our priority, and we are available via live chat or toll free at 1-800-4-INJURY.