With the recent popularity of ridesharing services such as Uber and Lyft, there are naturally many questions and new legal considerations that affect both rideshare drivers and passengers. Is the rideshare company responsible for damages and injuries? Is the driver responsible? Will the insurance provided by the rideshare company be enough to cover all damages or injuries? What additional insurance does the driver need?
The personal injury attorneys at Cueria Law Firm in New Orleans have assisted many clients in learning about their rights as a Lyft driver in the case of an accident or injury. Our experienced lawyers have successfully worked to help clients determine if they are eligible for financial relief after an auto accident involving Lyft.
Understanding Lyft’s Contingent Liability Insurance
Auto insurance can be a confusing topic for any driver, but it is especially complicated if you are a rideshare driver. Although Lyft does offer insurance coverage for its drivers, their coverage has very specific guidelines. The company identifies three different periods that determine the type of coverage available for drivers.
It is important to note that when the driver’s app is turned off, the driver is not covered under any Lyft insurance policy. Only the driver’s personal auto insurance can be used in the case of a vehicular accident when the driver app is turned off.
Period One: The driver app is in driver mode, but the driver has not yet received a ride request.
During this period, Lyft provides drivers with contingent liability insurance in the event that their personal auto 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.
This means that drivers are expected to contact their personal auto insurance company first. If they are denied coverage for any reason, then the driver may be able to utilize the contingent liability insurance provided by Lyft.
Period Two: The driver has received a ride request and has accepted it. The driver is en route to the rider.
Period Three: The rider is in the vehicle and on the way to their destination. Period three ends when the rider has been dropped off, and the ride has ended within the app.
During periods two and three, drivers have the most coverage through the Lyft insurance policy. The liability insurance offered is meant to be the primary insurance used while a ride is in progress. A ride is considered to be in progress from the time the ride is accepted to the time the ride is ended in the app. Lyft’s policy has a $1,000,000 per accident limit.
As a driver, you are also covered during periods two and three for what is known as UM/ UIM. UM means uninsured motorist and UIM means underinsured motorist. If you get into an accident with a driver who is uninsured or underinsured, and it is their fault, Lyft’s UM/UIM coverage can be utilized. The limits for this insurance vary by state.
Other Insurance Considerations with Lyft
During a ride, drivers are not only covered under Lyft’s liability and the UM/UIM insurance policies. Lyft also offers contingent collision and contingent 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 hefty $2,500 deductible.
As a new or even an experienced driver with Lyft, it is imperative that you know how you are covered in the unfortunate event of an accident. If you have been in an accident involving a rideshare company such as Lyft, you should contact one of the experienced personal injury attorneys at Cueria Law Firm immediately.
Our attorneys have the knowledge and experience to help you navigate this complicated topic and determine if you are eligible for monetary compensation.