Most people don’t know that the insurance provided by Uber and Lyft to its drivers, passengers, and third parties is actually different based on the situation:
If the Uber driver is en route to pick up a passenger or if they have a passenger in the car, Uber’s insurance coverage is ($1,000,000) One Million dollars per accident. This insurance is meant to indemnify passengers that are seriously injured due to an Uber driver’s negligent actions behind the wheel.
However, if the Uber or Lyft driver has no passenger, has the app open, and causes an accident with another vehicle, the Uber/Lyft Insurance policy may only cover $50,000 for injuries and $25,000 for property damage per accident. The average cost of a non-fatal disabling motor vehicle injury is $61,000 dollars, meaning the rideshare insurance policy in this situation could be fairly de minimis. Also, the $25,000 for property damage is a collective maximum amount per accident regardless of the amount of vehicles involved in the accident, therefore in a multi-car accident there may not be enough insurance coverage to repair or replace all vehicles involved.
To muddy the waters even more, the rideshare driver’s personal car insurance usually does not apply while they have the application open. Thus, even if the driver’s personal car insurance policy provides more coverage in an accident than the rideshare policy, as long as the driver was working at the time of the accident, a limited rideshare policy is often the only one in effect. In short, the factual circumstances behind each rideshare accident determines what insurance will be available for injured parties, and it can often be confusing to say the least. In addition, injured parties should expect that they will be contacted by an Uber/Lyft insurance representative shortly after the accident for a recorded statement. Injured parties should be aware that the insurance representatives do not protect their interests, rather their only obligation is to protect and defend Uber or Lyft and the rideshare driver that caused the injury to begin with.
If you’ve been in an accident with an Uber or Lyft driver you need to be aware that relying upon rideshare insurance agents or Uber/Lyft lawyers to do the right thing by you is often misguided and wrong. Don’t allow yourself to be lost in the shuffle or swept aside by insurance companies. After an accident, it is in your best interests to find an experienced attorney right away that will fight for your rights and walk you through the claims or litigation process. There is no need to go at it alone when you should be focused on recovery for your injuries and trying to get your life back to normal. Call the attorney’s at Abrams Justice for a free telephonic conversation about your case at (305) 709-0880, and they will be happy to answer any questions that you may have.