Rideshare Insurance Coverage: What Drivers and Passengers Need to Know

Not everyone can afford the expenses that come with owning a car. Plus, owning a car is just not feasible in large cities, where parking is limited. This is what has made ridesharing so popular in the past decade.

Ridesharing involves using an app to catch rides from drivers who work for Uber or Lyft rather than trying to hail a cab. Whether you are a driver who regularly picks up rideshare passengers or a passenger who regularly gets Uber or Lyft rides, you may be concerned about the possibility of a car accident.

Ridesharing is generally safe, as drivers are vetted, screened, and verified to ensure that they are safe and have no criminal records. Still, a crash can occur at any time.

If it does happen, you may want to know how Uber or Lyft will help. What type of insurance coverage will they provide? Read on to learn more.

Insurance Coverage

Uber and Lyft offer similar insurance coverage for rideshare drivers and passengers, but the level of coverage varies based on the status of the driver or app. Here’s what you need to know:

• Offline/app is off. The driver’s personal insurance coverage applies.
• App is on/driver is waiting for a ride request. Uber and Lyft both offer insurance for covered accidents. The amounts are $25,000 in property damage per accident, $50,000 in bodily injury per person, and $100,000 in bodily injury per accident.
• En route to pick up riders/during trips. Uber and Lyft maintain $1 million in third-party liability coverage in a covered accident. They also provide uninsured/underinsured motorist bodily injury and first-party injury insurance as well as contingent comprehensive and collision coverage with a $2,500 deductible.

So you may wonder: what does this all mean? Let’s take a look at some of the terms. Third-party liability insurance refers to property damage and injuries caused to a third party, which is anything other than yourself or your vehicle. Uninsured/underinsured motorist bodily injury coverage insures injuries to you and your riders if another driver is at fault and doesn’t have adequate insurance. This insurance also offers coverage in the event of a hit and run.

As long as you maintain comprehensive and collision coverage on your personal auto insurance, Uber and Lyft will also provide contingent comprehensive and collision insurance. This insurance provides protection for physical damage to your car up to its actual cash value. This insurance applies regardless of fault, once you pay the $2,500 deductible.

Contact a Personal Injury Lawyer

When an accident happens with a rideshare vehicle, you’ll want to know what insurance coverage applies. This will help you get the benefits you deserve to pay for damages.

A Houston Lyft accident attorney from The West Law Office, PLLC can answer your questions and ensure the proper procedures are followed. To schedule a free consultation, call 281-347-3247 or fill out the online form.

Source:

help.lyft.com/hc/e/all/articles/115013080548-Insurance-coverage-while-driving-with-Lyft