Are Rideshare Accidents Covered by Extra Insurance?

Rideshare companies like Uber and Lyft provide a convenient way to get around and they’ve quickly become a regular part of our transportation scheme in Georgia. More rideshare drivers on our busy roads means that more of these vehicles are involved in car accidents.

When a commercial vehicle like a delivery truck is involved in an accident, insurance provided by the company will often cover losses from the accident. Is the same true for rideshare accidents? Is there extra insurance available? The answer depends on several different factors and every case is unique, so an accident attorney would need to review all the details of your case before providing an answer. But we can take a look at some of the possibilities.

Understanding Insurance Options

Drivers who provide rideshare services sometimes have commercial auto insurance policies and sometimes have only personal auto insurance policies. Of the drivers who only have personal auto insurance policies, some obtain a rideshare endorsement to cover actions while providing rideshare services, and some try to keep their rideshare services a secret from the insurance company. And of the drivers who have a rideshare endorsement, some have endorsements that cover service provided through a wide range of apps, while others have endorsements that only cover service provided through one or two specific apps.

These policies and endorsements will have different limits and deductibles depending on what the driver purchased. And, these policies may or may not be the primary insurance for a rideshare accident, depending on the situation.

If it sounds confusing, it’s because it is. It can be difficult to determine which policies apply when a rideshare driver is involved in an accident and how much these policies will cover. Working with an accident attorney who understands complex insurance issues can help you take advantage of the best opportunities for recovery after a rideshare accident.

Insurance Provided by Uber and Lyft

Uber and Lyft offer commercial insurance to their drivers, but the details of these policies vary according to the laws of the state where the driver operates. The insurance only provides coverage some of the time, so these companies require drivers to maintain their own personal policies with coverage at the mandatory state minimums.

Coverage provided by the rideshare company applies only when a driver is online and either available to take riders, on the way to pick up riders, or carrying one or more riders. And, to make matters confusing, the coverage amounts are different depending on what the driver is doing at the moment of the accident.

If a driver who works with Uber or Lyft is not online with the service, then their insurance coverage is not available to that driver, and only the driver’s individual coverage will cover an accident.

Insurance Coverage Limits

Most states require drivers to purchase liability insurance so that if they cause an accident, the people who are injured can get at least some of their losses covered by that insurance. In Georgia, drivers are supposed to have a policy that provides at least $25,000 for a person’s injuries and $25,000 for property damage, such as damage to the vehicles involved. Drivers are required to have at least $50,000 of total injury coverage so that if more than one person is hurt, there is up to $50,000 available to pay for their medical bills and other losses. Many drivers carry only the required minimum coverage, so if medical bills, lost wages, pain, and other losses add up to more than the amount covered by insurance policies, then the driver could be held personally liable for the remainder.

Since hospital bills can quickly add up to thousands of dollars, and there are usually many more losses beyond those bills, it is extremely helpful to have additional insurance provided through the rideshare company.

Here are the liability policy limits provided by Uber and Lyft (in most markets):

• When a driver is carrying riders or on the way to pick up riders, Uber and Lyft say their insurance covers “at least” $1,000,000 for injuries to riders and third parties, as well as property damage, in accidents where the Uber driver is found to be at fault
• When a driver has the app on and is listed as able to take ride requests, Uber and Lyft provide insurance that is closer to state minimums. They advertise $50,000 per person for injuries (with a $100,000 maximum) and $25,000 for property damage
• When a driver has the rideshare app turned off, the driver is not considered to be driving for Uber or Lyft, and only their own personal insurance coverage applies

Uber and Lyft Are Not Liable as Employers

Unlike many commercial drivers who are considered employees working for a company, the drivers who provide rides through Uber and Lyft are not viewed as employees but independent contractors. Although they provide services through the rideshare company, they set their own hours and determine whether or not they will take a particular ride request. There is some disagreement as to whether some of the terms set by Uber and Lyft should cause these drivers to be treated as employees, but for now, they are generally held to be independent contractors rather than employees.

What does that mean when it comes to rideshare accidents? It means that Uber and Lyft cannot be sued as employers responsible for the conduct of their employees. However, if Uber or Lyft were to require or even encourage a practice that puts riders or others on the road in danger, it might still be possible to hold the rideshare company liable for any injuries resulting from these policies.

Rideshare Accidents are Complicated, But Michael M. Day Can Help

At Michael M. Day Law Firm, LLC, we know it can be more difficult to recover compensation for a motor vehicle accident involving a rideshare driver for numerous reasons. But we are dedicated to enabling accident victims to receive the full compensation they are entitled to, even when a case is complex and requires standing up to commercial lawyers and corporate insurance representatives. When another person’s negligence causes you to suffer pain and interferes with your ability to work and enjoy life, we fight to ensure that you receive maximum compensation for every impact of your injuries. For a free evaluation of your case and consultation with a dedicated accident attorney, call us at 404-480-4284 or contact us online now.