Do Ride Share Services Cover Personal Injury Claims?

Apps like Uber and Lyft have quickly taken over the traditional approach to getting around without a car. Their success is directly linked to the type of service and quality which they can provide. Courteous drivers with newer vehicles, competitive pricing, and the option to receive free rides just for sharing with friends are just a few of the benefits riders gloat about. Yet, one of the more common questions riders ask is the question of: do ride share services cover personal injury claims?

Driver Insurance

Every driver on the road should have insurance. This insurance usually includes passenger protection. Some of the larger cab companies like Yellow Taxi have made allegations that drivers for rideshare services do not have adequate insurance. This is where the question begins. In the case of most insurance policies, if a driver is in an accident as an Uber or Lyft customer, then the insurance company is able to deny the claim to cover personal injury of the secondary party. According to the leading automotive companies, passengers sustaining personal injury are not protected if the vehicle was being operated in a business capacity such as a livery service.

Rideshare Insurance

Next we take a look at the insurance policies of Uber and Lyft. Despite the allegations against them, both popular companies have extensive coverage for their drivers. More so than a traditional taxi company. The type of coverage offered is considered “excess coverage”. This means that if a driver’s insurance company will not cover a personal injury claim, the rideshare company will. Both companies carry a liability policy of up to $1-million. This is across the board for every driver.

Taxi companies carry insurance based on their own state regulations. This can be as low as $125,000 in some states and as high as $500,000. They may carry the minimum amount of insurance required by state law. While Uber and Lyft do provide full-time drivers with mobile devices and gas reimbursement, but the general expenses of owning and operating a vehicle fall onto the driver themselves.

If you are in an accident and struggling to understand who is going to pay for your medical bills after using a rideshare service, contact the Attorneys of SM Law Group. This is the best way to find out where you stand, without question.

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