The use of rideshare services has become a common method of transportation is both large and small cities. Rideshares offer a convenient, highly-accessible, and relatively inexpensive way to get around town. Companies like Lyft and Uber use their platforms to facilitate rides between contracted personal drivers and app users. Because auto accidents may occur during a rideshare, these drivers are required to have personal auto insurance. Since some insurance companies do not cover vehicles when used for hire, both Lyft and Uber maintain a $1,000,000 liability policy. However, liability and coverage for rideshare accidents are contingent on the driver’s use of the app at the time an incident occurs.
When Driver Mode is Off
When the driver is not using the rideshare app and is not operating as a hired driver (i.e., personal driving), the driver’s personal auto insurance would provide complete liability coverage if an accident were to occur. This means that claims made against the driver would involve the driver’s personal insurance and not the rideshare company.
Driver Mode on, but no Rides Accepted
If an accident occurs while the driver is awaiting a ride request, both Lyft and Uber offer a contingent liability policy to protect drivers if their personal insurance fails to provide sufficient coverage. The policy has a $50,000 maximum limit per person, a $100,000 maximum limit per accident, and a $25,000 maximum limit for property damage.
Ride in Progress, From Acceptance to End
From the moment a driver accepts a ride to the time the ride has ended, accidents are covered by the rideshare company’s primary liability insurance. This policy has a limit of $1,000,000 per accident and includes limited coverage for property damage.
Personal injury claims involving rideshare services can be more complex than a standard auto accident claim. If you’ve been injured in a rideshare accident, contact Rhett Hoestenbach, P.C. to arrange a FREE consultation.