Whether or not a driver is part of Uber or Lyft can impact the personal injury claim of all parties involved in a car accident. One may worry what will happen if he or she is a passenger in an Uber of Lyft vehicle. Other concerns may come from drivers who hit by an Uber or Lyft driver. However, there are multiple levels of liability coverage to protect passengers and other drivers injured in an accident involving a rideshare driver.
According to The RideShare Guy, many major insurance providers now offer Rideshare insurance policies. Uber and Lyft also provide liability coverage to drivers, which is situational based on whether the drivers is transporting a passenger, picking up a fare, or waiting for a call from a fare.
An Uber or Lyft driver involved in an auto accident while a passenger is in the vehicle or on the way to pick up a passenger are covered up to $1 million in personal injury liability, according to NerdWallet. If the driver is in an accident while waiting for a call, the maximum amount covered by the rideshare companies decreases to $100,000.
This may seem like a big drop, but it is still higher than the minimum amount of coverage required by law in most states. Because Uber and Lyft drivers are insured for more than the average driver in those states, passengers and other drivers not at fault, may be able to collect more compensation for personal injury and property damage than if the accident involved a non-rideshare driver, NerdWallet suggests. A similar article suggests that in some states, the injured party may also be eligible to file a claim against the driver’s personal injury policy, or file a personal injury lawsuit against the rideshare company if the damages exceed the policy gap.
NerdWallet suggests that “It’s the rideshare drivers — not passengers or other drivers — who could face the most financial risk in an accident.”
It is important for rideshare drivers-like all drivers- to understand their insurance policy and ensure they have enough liability coverage. Uber and Lyft drivers should inform their insurance company that they are taking part in a rideshare program. Drivers may also want to ask their carrier about additional or rideshare coverage.
Drivers involved in an accident with an at-fault Uber or Lyft driver, or rideshare passengers who were in an accident are urged to contact an auto accident lawyer to determine if they are eligible to file a claim for compensation.