Uber and Lyft are two of the most common rideshare companies in the United States today. These services offer many benefits to both passengers and drivers in almost every city in the country. As a driver with one of these rideshare companies, there may be many questions about insurance and liability in the unfortunate event of an accident. The New Orleans attorneys at Cueria Law Firm can help.
When is a driver covered under Lyft’s insurance policy? What does Contingent Collision and Comprehensive coverage mean for rideshare drivers?
The experienced personal injury attorneys at Cueria Law Firm understand how complicated auto insurance can be for Lyft drivers. Our attorneys have worked with many clients to help them understand their rights and determine if they are eligible for financial relief after an accident. They have helped rideshare drivers like yourself understand Lyft’s contingent collision and comprehensive insurance policies to determine the best course of action in the event of a car accident.
Ridesharing with Lyft
Lyft provides passengers with a convenient and affordable way to travel locally. With the simple click of a button on a smartphone, customers can quickly and easily connect with a local driver who will provide door-to-door service. The rates for Lyft rides are often less expensive than those of a taxi, depending on the presence of surge rates. Riders no longer need to worry about finding an available cab when they need a ride. They can just schedule a ride directly on their smartphones whenever they are ready.
The rideshare service also offers another vital function for communities. Lyft provides a valuable source of income for over 1 million drivers throughout the United States and Toronto. With a relatively low barrier to entry, drivers can use their personal vehicles to earn money on rides they complete. They can work as much or as little as they want, giving many people an opportunity to make extra income as a second or even third job.
Automobile Insurance While Driving for Lyft
But with the popularity of driving for a rideshare service like Lyft, there are many questions about automobile insurance and which party would be liable in the event of an accident. When does Lyft’s insurance cover the driver? What additional insurance should drivers carry to protect themselves in an accident while driving for Lyft?
A complete understanding of the insurance protection provided by Lyft is critical for new and experienced drivers alike. The coverage can be summarized as follows:
The driver is not in “driver mode.”
This means that the driver does not have the Lyft app turned on and is unable to accept any rides. In this case, Lyft does not provide any coverage. The driver is only protected by his or her personal automobile insurance.
The driver is in “driver mode” but has not been matched with a rider.
In “driver mode” drivers are available to pick up passengers. Drivers who are in “driver mode” and have not yet been matched to a rider, are covered under Lyft’s contingent liability coverage if the driver’s personal automobile insurance will not provide coverage.
According to Lyft’s Insurance Policy, the contingent liability insurance policy has a $50,000 maximum for bodily injury per person, $100,000 maximum limit per accident, and a $25,000 maximum limit for property damage with no deductible.
The driver has accepted a ride.
As soon as a driver accepts a ride, Lyft’s liability coverage begins. It provides a $1 million per accident limit. This coverage lasts from the time a driver accepts the ride to the time the driver ends the ride in the Lyft app.
Contingent Collision & Comprehensive
Lyft also offers contingent collision and comprehensive insurance policies to drivers who already carry collision and comprehensive policies on their personal insurance policies.
Collision covers damage to your vehicle that was the result of an accident. Comprehensive covers damage to your vehicle from non-accident events such as fire, weather, or theft. For both of these policies, there is a $2,500 deductible.
If you are a driver for Lyft and have questions about contingent collision and comprehensive insurance policies, give the New Orleans attorneys at Cueria Law Firm a call. They can help you understand your rights and guide you through the confusing insurance claim process after a car accident while driving for Lyft.
Our attorneys will fight for you after an accident and work to get you the financial relief you deserve.