Rideshare Insurance: Here is What You Need to Know
Posted Friday, July 26, 2019 by Chris Thayer
We are in the midst of the height of the “gig” economy. Individuals are taking on second jobs, or gigs, that they are able to fit into their schedule to earn a little extra money. One of the biggest influxes in this so called gig economy was the introduction of rideshare applications available on any smartphone. Companies like Uber and Lyft offer the ability for a person to summon a driver to their location via smartphone and transport them somewhere else. Uber and Lyft offer a solution to those who need an affordable ride, but otherwise have no means of transport.
Even though taking an Uber or Lyft is convenient, there are still some concerns about rideshare companies, the drivers employed, and the liability the drivers or companies have for the safety of passengers. Rideshare companies often identify as technology companies rather than transportation companies. Additionally, drivers are usually independent contractors of the rideshare company, rather than employees. Because of these distinctions there can be issues that arise if an accident occurs in an Uber or Lyft vehicle.
Since their creation, Uber and Lyft have stated that they have a $1 million insurance policy that is supposed to cover damages or injuries that occur. While this may be true, there are still some caveats that determine when Uber, Lyft, or another rideshare company’s policies are in effect. There are situations in which the driver’s own personal auto policy is in effect and when the rideshare’s policy can be used:
- Personal Insurance: A driver who does not have the Lyft or Uber app open on his or her phone is subject to that driver’s own personal insurance. A driver who has the Lyft or Uber app open on his or her phone and is looking for passengers is still only covered by his or her own personal insurance.
- Rideshare Insurance: Rideshare insurance does not kick in until a driver has accepted a ride and is on the way to pick up the passenger, or the passenger is in the car being transported. When the passenger is dropped off, the rideshare insurance coverage ends.
Drivers are required to carry, at a minimum, the auto insurance required by the state of Washington:
- $25,000 for bodily injury or death of one person
- $50,000 for bodily injury or death of more than one person
- $10,000 for property damage
While the above might seem like this is adequate insurance coverage, either through the driver or rideshare insurance, there are still some issues. Other motorists, pedestrians, and bicyclists are subject to the same rules regarding rideshare insurance applicability – it is not just the passengers using the service. The driver’s owner personal policy might not be enough to cover the damages you have sustained when the rideshare app’s insurance is not applicable.
The personal injury attorneys at Pivotal Law Group are here to help you if you have been injured using a rideshare service. We know it can be confusing determining liability and holding the right parties accountable. Let us help you sort through that. Contact us today for a consultation.
(image courtesy of Abdiel Ibarra)