What you need to know as a Driver for Uber or Lyft:
1. There are different coverages for different phases of driving.
The insurance coverage details 3 separate phases of driving.
Phase 1 is when you have the app on but are waiting a ride request so you do not have a passenger with you yet. Coverage is limited to $50k per personal bodily injury, up to $100k per collision and $25k for property damage. This is a lot less than what the experts recommend, which is $100k per personal bodily injury $300k per collision and $100k for property damage.
Phase 2 is when you have been paired with a passenger and are on your way to pick them up. Phase 3 is when you have the passenger in your car and are driving to the destination. This phase is over when you drop them off and complete the trip on the app. The coverage for phase 2 and 3 is a $1 million third-party liability coverage. It also includes an uninsured/underinsured motorist bodily injury (which varies state by state) and a contingent comprehensive and collision coverage that covers up to the cash value of your car. However, the latter coverage comes with a $2,500 deductible, so 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 does your personal insurance get involved?
All personal auto insurance policies have a term in the contract where they do not cover you if you are using your vehicle for any commercial use. Driving Uber and Lyft is a commercial use of your vehicle therefore you are not covered under your personal policy while the app is on; you are only covered when the app is off. This is why we recommend adding an additional type of insurance to your personal insurance plan called “rideshare insurance”. This type of insurance will cover gaps in Lyft and Ubers insurance policies. Please ask your insurance company to see what options they offer.
If you get into an accident while driving for Uber or Lyft, while riding as a passenger for Uber or Lyft or if the party who hit you was driving for Uber or Lyft then give us a call. Razavi Law Group’s experienced personal injury attorneys will be able to sift through these confusing policies and advise you on what kind of insurance money is available given your specific situation.
To speak to any of our experts today do not hesitate to contact Razavi Law Group at (949) 734-0476
*The specific coverage amounts are from Lyft in California, Uber is very similar but not the exact same and policies vary from state to state.