Uber & Lyft Accident Attorneys

Rideshare vehicles fall into their own legal category that do not require the comprehensive automobile insurance coverages that traditional taxis and limousines must maintain. What does this mean for you? If you have been injured in a Lyft or Uber accident, you will need to navigate a dense insurance landscape to find available coverage. Rideshare vehicle crashes can involve several insurance policies. In the aftermath of a collision, it may not be clear which insurer is on the hook to compensate you for your damages. Ride share accident attorneys can help you navigate these policies and get you the compensation you deserve.

Rideshare companies have broken down the stages of driving into different phases. Insurance coverage depends on which phase is in place at the time of a collision. Generally, those phases are as follows:

Rideshare driver has the app off (Offline):

Drivers rely on their own personal car insurance when they aren't using the car for their work with Uber or Lyft. If the driver causes a crash while the app is not on, the driver’s personal car insurance will provide coverage to injured parties unless. If someone else causes a crash that injures an Uber or Lyft driver when their app is off, the Uber or Lyft driver’s personal auto insurance will provide uninsured or underinsured motorist coverage if it is applicable.

The app is on, and the driver is waiting for a request (Period 1):

Period 1 occurs when the Uber or Lyft driver is logged into the network and able to accept rides but has not yet accepted one. If the Uber or Lyft driver is at fault for a crash, the rideshare company’s automobile liability insurance kicks in in amounts of at least $50,000 per person (maximum $100,000 per incident) for bodily injury or death (at the time of publication).

The app is on, and the driver has accepted a request for pickup or has a rider in their vehicle (Period 2):

When the rideshare driver accepts a request and is on their way to pick up the customer, or there is a customer in the rideshare vehicle, the primary automobile liability insurance will increase to at least $1,000,000 for death and bodily injury if the rideshare driver causes an incident. The driver’s negligent actions are covered under the rideshare company’s commercial insurance. This commercial policy applies to any injured parties in the vehicle, or to pedestrians, bikers, or drivers/passengers in other vehicles on the road. This lasts for the duration of the ride and reverts to period one upon dropping the customer off.

Uninsured/underinsured ridesharing driver:

Rideshare drivers and rideshare passengers can be the victims of other drivers’ negligence. Negligent drivers may not have sufficient automobile insurance coverage to fully compensate an injured rideshare driver or passenger for the damages they’ve sustained. Sometimes the negligent driver does not have automobile insurance at all (a violation of state law, but it does occur). Uninsured and underinsured motorist coverage can step in to protect injured people in that situation (check out our articles explaining UM/UIM coverage).

Uber and Lyft recently made a major change to their commercial automobile insurance policies by getting rid of UM/UIM coverage which is sure to have an impact on drivers and passengers alike.

For Drivers:

Your personal automobile insurance may not apply when you are working as a rideshare driver (i.e., when the app is “on,” in either Period 1 or Period 2). Your personal automobile insurance will likely cite an exclusion in the policy language that makes your personal coverage inapplicable during those specific times. If you are injured through the fault of another driver when you are on the app, you may not have access to your uninsured and/or underinsured motorist coverage (because your insurer is going to cite the policy exclusion). That means, if an uninsured driver injures you, there may be no insurance available to compensate you for your damages. Before, Uber and Lyft maintained underinsured and uninsured coverage for the drivers and riders and the commercial coverage would have protected you as a driver. Today, no such protection exists. There are special coverage riders that exist for rideshare drivers to fill this insurance gap, although drivers must pay for them out of their own pocket.

For Passengers:

Passengers with personal automobile insurance who are injured by other drivers while riding in a rideshare vehicle still have access to their own personal automobile insurance, meaning they can utilize their personal underinsured and/or uninsured motorist coverage if necessary. Passengers who must be on alert are those who do not have personal automobile insurance coverage. These people run this risk of not having any applicable insurance to compensate them for their injuries if they are injured by an uninsured driver while they’re a passenger in a rideshare vehicle.