Uber, Lyft, and other ride-sharing companies provide a convenient and inexpensive means of transportation for people in urban areas all over the U.S. Unfortunately, ride-sharing company drivers occasionally get into accidents that result in injuries to their passengers, other drivers, or pedestrians. Understanding how ride-sharing companies insure their drivers is important to recovering damages you may have an entitlement to.
Ride-share services typically have insurance policies for their drivers that apply when the drivers have passengers. For example, Uber uses a $1 million liability/$1 million uninsured/under-insured coverage policy for its drivers when they have passengers. This means that if an Uber driver has a passenger and then has an accident, the Uber insurance will pay the claim.
When ride-sharing service drivers don’t have a passenger, they are often covered only by their personal auto insurance. So, if they’re in an accident going to or from a fare, the Uber policy does not cover them. Only their own personal policy will cover them.
However, personal policies may exclude coverage of work activities such as driving for a ride-sharing company. Because ride-sharing company drivers are third-party contractors, it may limit the ability of victims to recover directly from the company.
Therefore, if you’re in an accident as a passenger of an Uber, Lyft, or another ride-sharing car, you need to talk to a lawyer. This is because receiving compensation can be complicated. Read more about Rideshare law in our featured article, Rideshare Accident Lawyer – 9 Facts Accident Victims Must Know.