In recent years, most people use Uber and Lyft as their main way to move across the city. However, ridesharing drivers also have several danges they must face daily, accidents while driving can happen.
If you are an Uber/Lyft driver or passenger, you must know Uber and Lyft won’t always cover you while working for them, you will also need to add ridesharing insurance to your policy. In this guide, we will provide a comprehensive overview of the insurance coverage options offered by Uber and Lyft, as well as what to do in case of an accident.
Personal Auto Insurance and Ride-Sharing Services
Before we dive into the insurance coverage options offered by Uber and Lyft, you must know how personal auto insurance works with ride-sharing services. In a nutshell, almost all personal auto insurance policies won’t cover accidents while driving for a ride-sharing service because that’s a job, and your personal insurance will only cover you while you drive for personal use.
Uber and Lyft's Insurance Coverage
Both Uber and Lyft protect their drivers and passengers while you’re workign for them. However, the coverage will be different depending on the accident. In general, Uber and Lyft give you and the passengers you bring to their the following types of insurance coverage:
Liability Coverage: if you are at fault for an accident while driving for Uber or Lyft and your app is on while you’re waiting for your passenger, this is the primary coverage from both companies from the time you accept any passenger request.
Uninsured/Underinsured Motorist Coverage: This coverage applies if you are involved in an accident with an uninsured or underinsured driver while driving for Uber or Lyft. It covers your injuries and damage to your vehicle.
Collision Coverage: This coverage option applies only if you aleady added collision coverage to your personal policy. As you know, if you suffer a collision, this coverage will cover the damage expenses of your vehicle, regardless who is at fault.
Comprehensive coverage: This coverage option applies only if you aleady added comprehensive coverage to your personal policy. This coverage option will cover all non-collision damages like theft, vandalism or natural disasters, among others.
Coverage Options for Uber and Lyft Drivers
If you are working for Uber or Lyft, you have several insurance coverage options available to you, these coverage options will be available depending on several scenarios. These options include:
Period 1: This is will be applied when your app is online. During this period, Uber and Lyft provide limited liability coverage (50/100/25).
Period 2: This is the period when you have accepted a ride request and are on your way to pick up the passenger. During this period, Uber and Lyft provide primary liability coverage. That coverage will pay the damage expenses to the properties or injuries by other people up to the limit. That limit tend to be $50,000 in bodily injury per person, $100,000 in bodily injury per accident, and $25,000 in property damage per accident.
Period 3: This is the period when you have picked up the passenger and are driving them to their destination. During this period, Uber and Lyft provide $1 million in liability coverage as well as uninsured/underinsured motorist coverage and collision coverage.
Coverage Options for Uber and Lyft Passengers
If you are a passenger in an Uber or Lyft ride, you are also covered. The coverage available to you depends on whether the driver is at fault for the accident or not.
If the driver is at fault: If the driver is at fault for the accident, you are covered by the driver's liability coverage, which covers your injuries and any damage to your property.
If another driver is at fault: If another driver is at fault for the accident, you are covered by the at-fault driver's liability coverage, which covers your injuries and any damage to your property.
If the at-fault driver is uninsured or underinsured: If the at-fault driver is uninsured or underinsured, you are covered by Uber or Lyft's uninsured/underinsured motorist coverage, which covers your injuries and any damage to your property.
What to Do in Case of an Accident
If you suffered an accident while driving or riding in an Uber or Lyft, there are several steps you should take:
Make sure everyone is safe: Check yourself and any passengers for injuries, and if necessary, call 911 for medical assistance.
Report the accident to Uber or Lyft: As a driver, you are required to report any accidents to Uber or Lyft within a certain amount of time. As a passenger, you should report the accident to Uber or Lyft as soon as possible.
Gather information: Collect the names, contact information, and insurance information of all parties involved in the accident, as well as any witnesses.
Take photos: Take photos of the accident scene, including any damage to vehicles and property.
Contact your insurance company: If you are one of the drivers driver, you should contact your personal auto insurance company to inform them about the accident. If you are a passenger, you should contact your health insurance company to inform them of any injuries.
FAQs
Q: Does Uber or Lyft provide personal auto insurance for their drivers?
A: No, Uber and Lyft do not provide personal auto insurance for their drivers. Drivers are required to have their own personal auto insurance policy.
Q: Am I covered by Uber or Lyft's insurance if I am a passenger in an accident?
A: Yes, passengers are covered by Uber or Lyft's insurance in the event of an accident, depending on the circumstances of the accident.
Q: Can I file a claim with Uber or Lyft's insurance if I am injured in an accident as a driver or passenger?
A: Yes, you can file a claim with Uber or Lyft's insurance if you are injured in an accident as a driver or passenger.
Q: What should I do if my personal auto insurance policy does not cover me while driving for Uber or Lyft?
A: You should consider purchasing additional insurance coverage through a rideshare insurance policy.
Q: How do I report an accident to Uber or Lyft?
A: As a driver, you are required to report any accidents to Uber or Lyft within a certain amount of time. As a passenger, you should report the accident to Uber or Lyft as soon as possible.
Conclusion
Uber and Lyft provide coveage for all their drivers and passengers. However, you must know what insurance coverage is available to you if you suffer an accident. Uber and Lyft provide insurance coverage for their all their passengers, and all their drivers while their app is online. The coverage will vary depending on the accident. If you’re waiting for your passenger, Uber and Lyft will provide liability coverage (50/100/25), but if your passenger is already in your car, you will have $1 million in liability coverage as well as uninsured/underinsured motorist coverage and possibly collision coverage if you arleady added collision coverage in your personal policy.
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The Complete Guide to Insuring Uber Drivers and What You Should Know
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