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WHY PERSONAL AUTO INSURANCE DOESN’T WORK FOR UBER AND LYFT


Jan 27, 2016

If you are considering driving for Uber or Lyft (or both), you have to consider the insurance policy that will cover you on the job, even if you are planning to drive part-time. Personal auto insurance generally will not cover incidents involving passengers who hired you through a ride-share app. If you are considering a job with either company, here is some advice to consider:

Insurance for Uber and Lyft Drivers

There are different classifications when you are driving a personal vehicle for Uber and Lyft. Once you are on the job, Uber and Lyft provide insurance coverage. This includes primary third-party liability coverage of $50,000 per individual and $100,000 per accident, in addition to $30,000 for property damage.

Another $200,000 in excess liability is also provided by Uber for California drivers when they are matched with passengers, but before they pick them up. A $1 million liability and uninsured motorist policy kicks in when there are Uber passengers in the car. Similarly, Lyft also provides $1 million in liability and uninsured motorist coverage for accidents where the Lyft vehicle had passengers.

Accidents with Other Drivers

If you are ever involved in a car accident while driving for Uber or Lyft, you should first contact the police. A police report will be important when the insurance company or attorneys are investigating the accident. Take down the name and number of any witnesses on the scene, in case they leave before the police arrive.

While your personal auto insurance will not cover during the time you work for Lyft or Uber, the same rules apply to all crashes. You may have the opportunity to file a claim against negligent drivers if they were at fault. In any case, you will want the most complete account of the accident you can get. Uber and Lyft may suspend or terminate the account of drivers who are at fault for causing accidents while on the job.

Contact West Coast Trial Lawyers when you need an experienced and reputable accident attorney in Los Angeles who will fight for your rights. When driving for a ride-share company, you are entitled to protection under California law. For further information or to schedule a consultation, please contact us at (888) 539-9582 or visit www.WestCoastTrialLawyers.com.