Affordable and practical, rideshare programs like Uber and Lyft provide transportation to people across the U.S. A rising concern, however, focuses on liability and insurance. If you are injured as a passenger while riding in an Uber or Lyft, who is liable?
Uber and Lyft have three-part insurance policies:
- The first part: This refers to the time when drivers are waiting for a request. For Uber, drivers are covered for $50,000 for injury liability per person, $100,000 total liability for each accident, and $25,000 for property damage through contingent liability coverage. Lyft also offers the same contingent liability coverage in case your personal coverage does not provide those amounts. In essence, drivers must have their own personal insurance but are also covered by Uber & Lyft while waiting to pick up a passenger.
- The second part: This refers to the time when a request has been accepted and the driver is on the way to pick up the passenger. Uber insurance coverage includes liability to a third party, injuries where an uninsured or underinsured driver is at fault, and collision and comprehensive coverage, as long as you maintain personal insurance on the vehicle. Lyft provides contingent collision coverage, which covers physical damage to your car as long as you are personally insured. It also provides contingent comprehensive coverage, which covers physical damage to your car caused by non-accident related events, and uninsured or underinsured motorist coverage.
- The third part: This refers to the time when the rider is in the car until the destination is reached. Uber covers both the driver and the passenger for third party liability, uninsured or underinsured motorist bodily injury coverage, and comprehensive or contingent collision coverage. In Lyft’s insurance policy, both the driver and passenger are covered up to $1,000,000 per accident. This is on top of personal injury insurance.
The bottom line is that both Uber and Lyft cover drivers and passengers on a contingent basis, meaning the coverage kicks in when the personal insurance stops. It is also important to note, however, that Uber classifies its drivers as independent contractors, not employees. This means you cannot sue Uber for the conduct of its drivers if they are driving recklessly. If you are involved in an accident while a passenger in an Uber or Lyft, our Albuquerque personal injury attorneys at Michael J. Doyle, Attorney at Law can help.
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