In most instances, Uber and Lyft accident cases are settled with
insurance companies. In the event that a ridesharing driver or
company is liable for an accident, the accident claim would be
covered by their insurance coverage.
All Lyft and Uber
drivers must have their own insurance and, as we mentioned
previously, ridesharing companies are now legally required to have
insurance when operating in California. Whether a driver’s
coverage or the ridesharing company’s coverage would cover an
accident claim typically depends on the rideshare period during
which the accident took place.
Rideshare periods are the different steps of the ridesharing
process. Uber and Lyft have insurance that provides different
levels of liability coverage based on the rideshare period in
which an accident occurred:
Period 1: The rideshare driver has turned their rideshare app on
but they are waiting for a ride request.
During Period 1, Uber and Lyft have insurance on behalf of the
driver that has 50/100/25 coverage, with liability limits of
$50,000 per person, $100,000 for any accident involving bodily
injury, and $25,000 for property damage.
Period 2: The rideshare driver has accepted a ride request and is
on their way to pick up a passenger.
During Period 2, Uber and Lyft have insurance on behalf of the
driver that has $1 million third-party liability coverage. Uber
and Lyft’s insurance coverage for this period includes
uninsured/underinsured motorist bodily injury and contingent
comprehensive and collision (up to cash value of car, $1,000
deductible). This contingent comprehensive and collision coverage
applies to damage to a driver’s vehicle if they have personal
insurance that includes comprehensive and collision coverage.
Period 3: The passenger is in the rideshare driver’s car being
transported to their destination.
During Period 3, Uber and Lyft offer the same coverage as in
Period 2.
No Period: The rideshare driver is not logged into the rideshare
app.
If a rideshare driver is not logged into the ridesharing app,
they’re not in any rideshare period and they are not at work for
the ridesharing company. In this case, the ridesharing company
cannot be connected to a claim. If an Uber or Lyft driver is
involved in an accident when they’re not working for Uber or Lyft,
this accident would be treated like any other auto accident.
Claims related to the accident would be covered by the driver’s
personal auto insurance policy.