An Uber driver is basically running their own business. At the moment, Uber and Lyft still classify their drivers as independent contractors. That could change with legislation in California and many other states that want rideshare companies to treat drivers as employees. For now, it’s the Uber driver’s responsibility to protect themselves, their passengers, and their vehicle.
Many drivers think they’re covered by Uber’s $1,000,000 insurance policy. However, this insurance is intended to be supplemental or in addition to your personal auto insurance policy. It is only in effect when you have the rideshare company’s app on and you’re waiting for a rider. If you’re in an at-fault accident, this insurance covers the medical expenses and property damage of a third party.
And that $1,000,000 coverage is only applicable when a driver is en-route to pick up a rider until that passenger is dropped off. If you’re in an accident when the app is on but you’re waiting on a ride, the term limits are typically a minimum of $50,000 per person/$100,000 per accident for bodily injury and $25,000 per accident for property damage.
The rideshare company will only pay those coverage amounts if the limits on your own car insurance aren’t equal to or higher than those amounts.
But what about the rest of the time?
The rest of the time your personal auto insurance comes into play. And, if you’re driving for Uber, Lyft, or any other rideshare company, you ABSOLUTELY MUST tell your insurer or they too can decline to pay out anything. Nearly every auto insurance company will deny paying out on a claim if the vehicle is transporting paying passengers unbeknownst to the insurer. Personal auto insurance will not suffice if it’s learned the vehicle was being used for business purposes.
Transportation Network Companies (TNCs) such as Uber and Lyft have provided thousands a quick means to earn extra money or supplement/replace an income. While the freedom of setting your own hours is great, so is the risk.
You’re using your personal automobile for commercial purposes. You’re on the road longer. You’re near well-attended events or hotspots with heavy vehicular and pedestrian traffic. You’re distracted looking at the app sometimes. Just because you’re giving a ride to people who are too drunk to drive doesn’t mean you aren’t on the roads with other drunk drivers when the bars close.
But you’re responsible for the safety of every passenger that steps into your car. Therefore, you’re also liable for their medical expenses if you injure them in a collision you were at fault for.
An at-fault accident while working with Lyft or Uber can result in astronomical bills for medical expenses and property damage. You need to have a discussion with your insurance agent about safeguarding yourself from potential financial ruin.
Ask Your Auto Insurance Company About Rideshare Insurance
Rideshare insurance takes the place of your personal auto policy and covers you 24/7 whether you’re on or off a rideshare app. This means you have one policy covering you at all times. Whether you’re using your car for personal use or you’re working Uber, Lyft, Amazon Flex, Grubhub, Doordash, Instacart, Postmates, Uber Eats or any other app-based rideshare or on-demand delivery company.
This is much better than simply having the Uber or Lyft insurance on top of your personal auto insurance policy. There’s no confusion as to which insurance is covering you at which moment. You’re covered whether the app is on or off or whether you’re picking someone up, driving them to their destination, or you’ve dropped them off.
Rideshare insurance is offered by Allstate, Erie, Farmers, Geico, SafeCo, USAA, Esurance, State Farm and many other auto insurance companies.
HAVE YOU BEEN HURT IN A LYFT OR UBER ACCIDENT IN LOS ANGELES?
Regardless of which insurance company you’re dealing with, auto insurance companies DO NOT want to pay claims. They’re looking out for their best interests, not yours. Our Los Angeles car accident attorneys have helped both drivers and passengers get the money they deserve following an Uber or Lyft accident. Call our offices at (818) 334-5711 or complete our quick and easy online case evaluation form today to begin your journey to justice.
