July 14, 2020 | By Greene Broillet & Wheeler
Determining which party will pay for damages in the event of a rideshare accident can be complicated since there are different times when the rideshare driver’s insurance policy would come into play, and other times when the rideshare company’s commercial insurance policy would pay for damages.
Below, our Los Angeles trial attorneys discuss how and when rideshare insurance works.
Who Pays Depends on When the Accident Occurred
When a rideshare driver—an Uber driver, for example—causes an accident, either the driver’s own car insurance policy or Uber’s commercial policy would pay for damages resulting from the accident. Which party pays depends on when the accident occurred.
- If the driver is offline or the Uber Driver app is off: The Uber driver’s own car insurance policy would pay for damages from the accident.
- If the driver is available or waiting for a ride request: Uber’s third-party liability insurance comes into play if the driver’s own policy doesn’t apply. This coverage includes at least $50,000 in bodily injury per person, $100,000 in bodily injury per accident, and $25,000 in property damage per accident.
- If the driver is en route to pick up a passenger and during trips: Uber’s commercial policy is responsible for damages, including at least $1,000,000 third-party liability, uninsured/underinsured motorist bodily injury, and contingent comprehensive and collision coverage (up to the actual cash value of the car, minus a $1,000 deductible). There may be additional excess coverage available as well.
Lyft also has similar coverages for rideshare drivers. When Lyft’s commercial policy comes into play also depends on when the accident occurred:
- When driver mode is off: The Lyft driver’s personal car insurance policy pays for damages.
- When driver mode is on, but no ride has been accepted: Lyft’s primary liability coverage provides at least $50,000 maximum limit per person, $100,000 maximum limit per accident, and a $25,000 maximum limit for property damage. There is no deductible under this policy.
- When a ride has been accepted until the ride ends: Lyft’s primary liability coverage provides $1,000,000 per accident. If the Lyft driver already carries commercial insurance (or personal coverage that includes ridesharing), then Lyft’s policy will work in excess to the driver’s own insurance. There may be additional excess coverage available as well.
Injured in an Uber or Lyft Accident? We’re Here to Help
If you have been injured in a car accident caused by an Uber or Lyft driver, our Los Angeles trial attorneys can work through complex issues of liability while you focus on recovering from your injuries. Whether you need help negotiating with insurance providers or advocating for your needs in a personal injury lawsuit, our trusted attorneys will stand by your side in a rideshare accident claim.
Contact our firm at (866) 634-4525 to schedule a free consultation.
