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May 7, 2016

Driving for Uber and Lyft introduces both advantages and disadvantages. While drivers for these companies earn extra income, automobile accidents involving rideshare vehicles can occur. Both Lyft and Uber result in a lot of activity in Los Angeles. According to a 2015 report in Forbes, in the cities in which it is present, Uber is expanding fastest in Los Angeles. Here are the insurance coverage issues under the current law involving rideshare drivers.

Driving Periods

Insurance coverage for accidents involving rideshare vehicles is based on the “period” during which the accident occurs. The period breakdown is as follows:

  • Offline. Occurs when the rideshare application is inactive. When the driver is engaged in this period, the driver’s personal insurance coverage applies.
  • Period 1. Refers to the time when the rideshare application is turned on and the driver is in the process of being matched with passengers. For this period, Uber and Lyft provide liability coverage limits of $50,000 per person and $100,000 per accident. Collision and all other types of coverage during Period 1 is left to the driver’s personal insurance policy. Because additional situations exist where a rideshare driver is not covered by rideshare company coverage during Period 1, a driver must purchase special policies concerning Period 1.
  • Period 2. Happens when a Driver is enroute to pick up a passenger. During Period 2, Uber or Lyft policies provide up to $1,000,000 liability and uninsured/underinsured motorist claims. If the rideshare driver maintains collision coverage at the time of the accident, Uber and Lyft will pay for damages to the driver’s vehicle.
  • Period 3. Occurs when a rideshare driver is transporting a passenger to the passenger’s desired destination. Liability, uninsured/underinsured, and collision coverages for Period 3 are the same as Period 2.

Before working for either Lyft or Uber, a potential driver should first contact the appropriate rideshare company to learn the full details of their insurance policy. A driver should also call his or her own insurance company to learn about the exact coverages for the vehicle.

If you get into an accident during any period of the rideshare process, it is in your best interest that you get an experienced car accident lawyer in Los Angeles to guide and represent you. West Coast Trial Lawyers, one of the leading law firms in Los Angeles, has experience working with rideshare accidents and can diligently fight for a successful outcome whatever your circumstances may be. For further information or to schedule an appointment please contact us at (888) 539-9582 or visit

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