Navigating insurance coverage after an accident with an Uber or Lyft driver can be complex, involving different phases, requirements, and coverage limitations. Understanding the different types of rideshare coverage helps ensure you receive fair compensation for injuries and damages sustained in a rideshare accident.
The extent of your injuries, the phase of the ride, applicable insurance policies, and other factors can influence the financial compensation you’re entitled to and potential gaps in coverage. The claims and litigation process can be lengthy, and having the right knowledge is essential for minimizing delays in financial awards.
Key Points
- Drivers’ personal auto insurance and rideshare company-provided commercial insurance may apply to Uber and Lyft accidents.
- Injured passengers may seek financial compensation for injuries or other damages from rideshare insurance companies.
- Parties involved in an Uber or Lyft accident should take prompt action to report incidents and file claims.
Uber/Lyft Driver Insurance Explained
Ridesharing continues to change transportation, and that extends to insurance. In response, Lyft and Uber driver insurance providers have had to adapt their policies to fit these business models.[1] Auto insurance and company-provided insurance coverage pose different requirements and limitations that are key for injured passengers dealing with rideshare car accident lawsuits.
Personal Auto Insurance for Rideshare Drivers
Rideshare drivers must have personal auto insurance, which provides coverage for personal use, such as commuting or errands. Uber driver insurance requirements vary by state, but personal auto policies generally exclude coverage for driving for business purposes. They consider driving for Uber, Lyft, or other ridesharing companies to be business use.[1]
Some personal auto insurance providers may offer rideshare policy or endorsement options that extend to certain periods of business use, such as waiting for a ride request. Otherwise, personal policies limit coverage and often exclude periods when drivers accept ride requests or transport passengers. If they’re involved in an accident during rideshare services, their personal insurance may not cover damages to themselves or passengers.
That’s where company-provided coverage comes in.
Company-Provided Insurance Coverage
Rideshare companies provide insurance for Uber drivers by working with insurance companies.[2]These insurance policies classify and cover drivers according to their status. If drivers are active on the rideshare app, the type and amount of insurance coverage depends on when the accident happens:
- Period 1. When drivers are active and waiting for ride requests, Uber and Lyft may provide contingent liability coverage and uninsured/underinsured motorist coverage.[2][3]
- Period 2. Liability, collision, and other coverage may increase to cover accidents when drivers are en route to pick up passengers.
- Period 3. Uber and Lyft provide their highest level of coverage in case of an accident with passengers in the vehicle.
Insurance Coverage Periods for Rideshare Drivers
Uber and Lyft drivers operate with insurance coverage periods that vary depending on the situation.[2][3] Understanding these periods is crucial for understanding the extent of coverage your driver may have if you’re involved in an accident.
Period 0: App Off, Personal Use
Uber and Lyft driver insurance doesn’t apply when the respective rideshare app is off and the driver is unavailable for rides. Drivers involved in a collision in these instances should make their claims with their personal auto insurance provider.[2][3]
Period 1: App On, Awaiting Ride Request
If they’re active on the rideshare app and waiting to receive a ride request when they’re involved in an accident, Uber or Lyft drivers may claim contingent liability coverage up to:
- $50,000 per person for bodily injury[2][3]
- $100,000 per accident for bodily injury[2][3]
- $25,000 per accident for property damage[2][3]
Uber and Lyft insurance coverage is contingent on drivers’ personal insurance. If their personal insurance or rideshare endorsement denies their claim or doesn’t cover the entire liability, Uber or Lyft can cover amounts beyond primary policy limits.[2][3]
Period 2: En Route to Pickup
This period begins when drivers are active in the rideshare app, accept ride requests, and are en route to pick up passengers. Uber and Lyft insurance provides $1 million in third-party auto liability coverage in this period for at-fault rideshare drivers.[2][3]
Depending on the state, rideshare companies may also offer uninsured/underinsured motorist insurance (UM/UIM), personal injury protection (PIP), MedPay, or Occupational Accident coverage. Rideshare drivers with collision and comprehensive coverage on their personal auto insurance policy can also claim Uber or Lyft’s contingent coverage, which has a $2,500 deductible, up to the car’s cash value.[2][3]
Period 3: Passenger on Board
When a rideshare driver has a passenger in their vehicle and is transporting them to their destination, Uber or Lyft provide primary liability coverage.[2][3] This coverage may offer up to $1 million per incident for bodily injury and property damage to other parties.
If the driver holds their own commercial insurance or rideshare endorsement, Lyft or Uber policies are in excess of their coverage. As during Period 2, rideshare companies may include uninsured/underinsured motorist coverage, PIP, MedPay, or Occupational Accident coverage. Likewise, drivers with existing comprehensive and collision coverage may claim contingent comprehensive and collision coverage through Lyft.[2][3]
Potential Insurance Gaps and Risks
Rideshare drivers and passengers both face potential insurance gaps and risks. When involved in an accident while off the app or waiting for a ride request, rideshare drivers often rely on their personal auto insurance policy coverage. If drivers don’t have a rideshare endorsement, their personal insurance provider may reject their claim, and Uber or Lyft driver insurance coverage limits may not cover the extent of damages.[1][3]
When en route or transporting passengers, personal and rideshare insurance policies may dispute or delay claims processing, fail to cover full amounts for extensive damages, or exclude circumstances not specifically outlined in policy terms.
These gaps can similarly affect injured passengers—disputes over liability or coverage limits, for instance, can result in delays in compensation to passengers. Limited coverage for medical expenses or personal property damages may also leave passengers with out-of-pocket costs.
When pursuing insurance claims or lawsuits against rideshare drivers, pre-settlement funding works to provide financial relief to injured passengers for medical bills, living expenses, or other costs while waiting for their cases to resolve.
Personal Injury Protection
Personal injury protection auto insurance policies can provide immediate coverage for medical costs or lost income due to injuries sustained in a rideshare accident, regardless of who is at fault.[4] Without sufficient PIP coverage, injured passengers may face either out-of-pocket medical costs or delayed treatment while awaiting compensation.[4]
To ensure you have proper PIP coverage, review your personal auto insurance policies—PIP coverage is mandatory or optional, depending on the state. Consider purchasing additional PIP coverage if it’s not included in your standard auto insurance policy.
Rideshare Passenger Rights and Responsibilities
Passengers can report accidents and injuries sustained during rideshares.[3] Whether for medical treatments, lost income, pain and suffering, punitive damages, or other damages, injured passengers can seek financial compensation and file insurance claims against the driver’s insurance provider. Keep in mind that rideshare users’ rights come with code of conduct responsibilities, such as providing accurate information, complying with safety guidelines, treating drivers with respect, and promptly reporting concerns.[5][6]
To claim compensation, passengers must satisfy their own responsibilities in the process. Passengers should promptly report accidents to authorities and the rideshare company to ensure proper documentation.[7]
Throughout the claims process, passengers may need to cooperate with investigations and undergo medical evaluations. They should also review their insurance policies to determine if they have applicable coverage through PIP or health insurance.
Injured parties who require immediate or ongoing medical treatment throughout the claims process may consider pre-settlement funding as a cash advance option to cover their expenses.
Reporting Accident and Injuries
Report accidents and injuries to the rideshare company and police in a timely manner to initiate the claims process. Prompt reporting is essential for ensuring the safety of and getting medical attention for all parties involved in the accident. Addressing injuries immediately also ensures thorough medical evidence related to the accident.
Filing Claims with Rideshare Companies
Filing claims with Uber, Lyft, or other rideshare companies generally involves following structured processes and policies.[8] Obtain information about the rideshare’s insurance provider, review their coverage policies, and understand how it interacts with your personal insurance.
Include necessary documentation, such as medical records or photographs of the accident, when you submit your accident report and insurance claim. Be aware of deadlines—some policies require you to file within a certain time frame.
I Was in an Uber/Lyft Accident. Now What?
Rideshare companies maintain specific processes for reporting accidents and injuries.[6] Follow these steps to report an Uber or Lyft accident:
- Seek safety and medical attention. Contact emergency services and local authorities, and seek medical attention for involved parties.
- Collect evidence. Collect any information related to the accident, including injuries sustained, photos of the accident, license plates and insurance information of other drivers, and witness contact information. Keep medical records and receipts for expenses incurred due to the accident.
- Report the accident. Use the rideshare company’s app, customer service line, or website to report the incident as soon as possible.
- Seek legal advice. Consult with a lawyer specializing in personal injury claims to get support throughout the claims and litigation process.
- Consider deadlines. Timely reporting helps avoid delays or disputes in the claims process. Check your state’s statute of limitations, which determines the deadline to file your lawsuit.
How USClaims Can Help
Lawsuits may take months or longer to resolve, but damages resulting from an Uber or Lyft accident often require immediate financial support. Pre-settlement funding from USClaims helps relieve financial burdens related to medical bills, living costs, or other expenses.
Pre-settlement funding functions as a cash advance based on your expected settlement amount, and funding only requires repayment if you win your case. Don’t wait on your settlement to relieve your financial stress. Contact USClaims to find out if you qualify for funding. We’ve helped countless others get the funds they need while pursuing the settlement they deserve.
The availability of pre-settlement funding varies by state. Contact USClaims for more information.
FAQs
What if an Uber or Lyft driver’s personal insurance lapses?
If a rideshare driver doesn’t maintain their personal insurance, they won’t have coverage when offline or waiting for ride requests, and the rideshare company may suspend their access until they reinstate their insurance. In an accident, the driver could be liable for damages and face legal and financial consequences.
Are rideshare passengers covered for medical expenses?
Rideshare passengers are generally entitled to medical expense coverage through rideshare company insurance, but they’ll have to complete a successful claims process to receive compensation. No-fault coverage applies immediately to avoid delays in medical treatment.
Who is liable in case of an accident with an Uber or Lyft driver?
Liability in an Uber or Lyft accident depends on the phase of the ride, the driver’s actions, and the accident’s circumstances.
Sources
- “Uber Insurance for Drivers.” Uber, www.uber.com/us/en/drive/insurance/.
- “Uber U.S. Insurance.” Uber Blog, www.uber.com/blog/uber-us-insurance/.
- “Insurance Coverage While Driving with Lyft.” Lyft Help Center, help.lyft.com/hc/en-us/articles/115013080548-Insurance-coverage-while-driving-with-lyft.
- “Personal Injury Protection: What It Is, How It Works.” Investopedia, www.investopedia.com/terms/p/personal-injury-protection-pip.asp. 4 Sept 2023.
- “Community Guidelines.” Lyft, www.lyft.com/safety/community-guidelines.
- “Uber’s Community Guidelines: Safety and Respect for All.” Uber, https://www.uber.com/us/en/safety/uber-community-guidelines/.
- “What to Do in a Crash.” Uber, www.uber.com/us/en/safety/what-to-do-in-a-crash/.
- “Uber and Lyft Accidents and Legal Options.” Justia, car-accidents.justia.com/types-of-car-accidents/uber-and-lyft-accidents. 29 Apr 2024.
