Are Uber and Lyft Drivers Required to Have Insurance?
Yes. Drivers of Lyft and Uber must have auto insurance to cover injuries when they cause a traffic crash. Rideshare companies require all their drivers to have personal auto insurance coverage, and they also provide extra coverage depending on the situation.
Rideshare Drivers Must Have Insurance to Cover Accident-Related Losses
When you get into an accident involving an at-fault rideshare driver, there are personal insurance coverage, liability coverage, and contingency policies that will cover your accident-related losses. However, which coverage applies will depend on what the rideshare driver was doing at the time of the crash. When a Lyft or Uber app is not turned on, the driver’s personal insurance policy will apply.
When the driver’s app is turned on, Lyft and Uber will provide coverage. Once the driver accepts a ride request and heads to the passenger’s location, the liability coverage will be triggered and remain the primary coverage until the passenger reaches their destination. Below is a breakdown of the insurance coverage provided by Lyft and Uber.
The rideshare app is turned on, and the driver is waiting for a passenger.
- Uber and Lyft – If the driver’s personal coverage does not apply, Uber will provide third-party liability insurance of up to $50,000 per individual for bodily injury, up to $100,000 per accident for bodily injury, and up to $25,000 per accident for property damage.
The rideshare app is turned on, and the driver is on their way to pick up a passenger, is carrying a passenger, or traveling to the passenger’s destination.
- Uber – Third-party liability insurance of up to $1.5 million, uninsured/underinsured motorist insurance for bodily injury, and contingent collision and comprehensive insurance up to the vehicle’s actual cash value with a deductible of $1,000.
- Lyft – Third-party liability insurance of up to $1.5 million, uninsured/underinsured motorist insurance or first-party coverage for bodily injury, and contingent collision and comprehensive insurance up to the vehicle’s actual cash value with a deductible of $2,500.
Third-party liability insurance covers property damage and bodily injury that a third party suffered in a rideshare accident. For instance, if the Lyft or Uber driver sideswipes your vehicle, this coverage must pay for your losses.
Uninsured/underinsured motorist insurance covers injuries sustained by the rideshare passenger and driver and another driver that caused the crash if that driver doesn’t have enough insurance coverage. This insurance policy also applies to hit-and-run crashes.
If the rideshare driver has collision and comprehensive insurance on their personal insurance coverage, Lyft and Uber will provide the same coverage. If the driver doesn’t have this coverage, the rideshare company will not provide it either.
Discuss Your Case With a New Jersey Rideshare Accident Lawyer Now
The rideshare accident lawyers at Leonard Legal Group understand how the consequences of a rideshare accident can put major financial and emotional burdens on people who have been injured because of a negligent driver’s actions. Our lawyers can help you better understand legal options to ensure that you receive all the compensation you are entitled to under the law.
Set up your free case review with our New Jersey rideshare accident lawyer by calling our office at 973-984-1414 or filling out our online form today.