These are the things a driver must need to know about auto insurance in driving for Uber and Lyft.
1. There are coverages for different phases of driving.
The insurance coverage details 3 separate phases of driving.
Phase 1 is when you turned on the application but still waiting for a ride request. It means that you do not have a passenger with you yet. The coverage is limited to $50k for injury per person, $100k per collision, and $25k for property damage. These amounts are a lot less compared to the expert’s recommendation. Which is $100k per person bodily injury $300k per collision, and $100k for property damage.
Phase 2 is when you’ve been paired with a passenger and you’re on your way to pick them up. Phase 3 is when you have the passenger in your car and you are driving to your destination. This phase is over when you drop them off and complete the trip on the app. The coverage for phases 2 and 3 is a $1 million third-party liability coverage. It also includes an uninsured or underinsured motorist injury and a contingent comprehensive and collision coverage. This also covers up to the cash value of your car. However, the latter coverage comes with a $2,500 deductible. It means that you’ll incur significant out-of-pocket expenses before Lyft’s insurance covers any accident or injury-related expenses.
Phase 2 and 3 have the same insurance coverage.
2. When to involved personal insurance in driving for Uber and Lyft?
Insurance coverage in driving for Uber and Lyft has a term in the contract where they do not cover you. It is when you are using your vehicle for any commercial use. Driving Uber and Lyft requires commercial use of your vehicle. Therefore, you are not covered under your personal policy while the app is turned on. You will only be covered when the app is off. Because of this, we recommend adding an additional type of insurance called “rideshare insurance”. This type of insurance will cover gaps in Lyft and Uber’s insurance policies. You may ask your insurance company to see what options they offer.
If you get into an accident while driving for Uber or Lyft, give us a call. Freeway Law’s experienced auto car accident lawyers will be able to sift through these confusing policies. We will guide you on what kind of insurance is available given your situation. To speak with our experts today do not hesitate to contact us at (844) 443-7339.
The specific coverage amount discussed was from Lyft. While Uber is very similar but not the exact same and policies vary from state to state.
Sources:
https://www.insurance.com/auto-insurance/uber-insurance.html
https://www.policygenius.com/blog/insurance-secret-uber-doesnt-want-know/
https://www.hg.org/legal-articles/what-you-need-to-know-about-uber-s-1-million-insurance-plan-37714
