Mobile Rideshare Apps
Uber, Lyft, and similar apps are generally considered technology companies, and are often not subject to the same rules as taxi companies or similar transportation services.
Insurance Coverage: Plan Principles
Uber and Lyft have a minimum $1 million insurance coverage. The company and passengers are covered by a three-part insurance plan, and the coverage that applies is based on the driver’s activity at the time of the accident.
Available: No Passenger
If a driver is available on the app but is not carrying a passenger when the accident occurs, the primary insurance is the driver’s own insurance policy. Uber / Lyft may also provide additional coverage in this situation with liability coverage up to $50,000 per injury with a maximum of $100,000 and a maximum of $25,000 in property damage. This coverage may only apply if the driver requests it, and if the driver’s personal liability coverage does not cover all of the damages.
Available: Carrying a Passenger
In this situation, and in most instances, a minimum $1 million policy can cover the accident. If the Uber / Lyft driver is carrying an app passenger, the driver and passenger are covered under the liability insurance policy. Additionally, if a third party was injured, such as a cyclist or pedestrian, the third party may also be covered by the app’s policy. However, if Uber / Lyft deny coverage, the app driver and passenger may be denied by the driver’s personal insurance policy because the driver was driving for pay at the time of the accident.
Uninsured / Underinsured Motorist
Uber & Lyft also carry a $1 million uninsured/underinsured motorist policy so that if the accident is caused by an uninsured driver, this policy will provide coverage.
Policy Denied Claims
Uber / Lyft’s insurance policy’s carrier is dedicated to avoiding paying out as many claims as possible. An element that can lead to denial, is if the driver was distracted, drunk, or driving recklessly. You may seek payment from the driver’s personal insurance company. However, many insurance policies prohibit their insured from driving for work purposes or using their vehicle as a taxi or rideshare vehicle. Suing the driver directly may limit and minimize the amount of damages that you can receive.
If you are injured while riding as a passenger or driver for Uber / Lyft, you may be able to pursue a civil lawsuit against Uber / Lyft or the driver’s insurance company. You may also be entitled to compensation for medical expenses, lost wages, pain and suffering, and other damages. An attorney at Razi Law Group can assist you in retaining the maximum compensation for your injuries. Contact us immediately after an Uber / Lyft accident.