In the past few years, Uber, Lyft, and other ridesharing services have become a national phenomenon. The services exploded onto the scene and have effectively changed the transportation industry. Both Uber and Lyft allow users to download an app to their phones and order a driver to come pick them up from nearly any location. The services often cost less than a traditional taxi, and allow users to see exactly how long it will take for their driver will take to get to them, as well as the driver’s exact location.
While these ridesharing services have been invaluable for people who use public transportation or rely on the occasional taxi after a night out, ridesharing services have also raised questions about legal liability when riding in a relative stranger’s car. If you get into an accident with an Uber or Lyft driver, will you be covered by insurance?
Uber, the largest of the ridesharing companies, is leading the way on carrying insurance policies that adequately protect drivers, passengers, and other people on the road.
Unlike a regular taxicab, which is insured by commercial transportation insurance, Uber drivers use their own vehicles. This means that if the driver is in an accident, there are three different situations which may affect which insurance policy covers the driver and any other people involved in the collision.
In the first situation, the Uber app is off and the driver is not currently working. In this case, the driver’s personal auto insurance would cover them in an accident, just like it would with any other non-Uber driver.
In the second situation, the Uber driver has the app turned on and is waiting for a passenger to request a ride. Previously, Uber had refused to cover drivers with its company insurance in this situation, resulting in a coverage gap. However, after multiple states put pressure on the company to change its insurance policies, Uber now covers waiting drivers with a secondary insurance policy which will pay for any damages not covered by the driver’s personal insurance. This is an important change because many Uber drivers found that their personal insurance policies refused to cover them after an accident once the insurance company found out that the driver was working for Uber. Now, there will at least be some insurance which will fill in the gap in case the waiting driver is in an accident.
In the final situation, the Uber driver is actively transporting a passenger when a collision occurs. If this happens, Uber’s company insurance will pay for any damages in the accident. The company carries commercial liability insurance with a $1 million policy limit, as well as a uninsured/underinsured bodily injury policy, also with a $1 million limit. The company also provides comprehensive collision coverage for the driver.
In addition to these insurance policies, many insurance companies are beginning to recognize that traditional insurance policies are not covering rideshare drivers in the way that they need. As a result, new insurance products are being developed by many companies which will fill these gaps.
If you are involved in an accident with a rideshare driver, or are injured while riding in an Uber or Lyft vehicle, the coverage that will apply will depend on what the Uber driver was doing at the time. At the very least, passengers can rest assured that the company’s insurance policies will cover them while they are on a ride.
Sifting through the various insurance policies involved after an accident in an Uber or Lyft vehicle can be complicated. At Fighting for People Injury Law, our attorneys stay up-to-date on the changing laws regarding rideshare services, and can help you make sure that you get the help you need after an accident. For a free consultation, call our office today at 215-396-9660.
