What Does Lyft’s Car Insurance Cover?

Rideshare services such as Lyft have changed the way we travel. They made a once complicated trip as simple as tapping a screen. Unfortunately, drivers for these companies make more money by completing multiple rides. They may feel pressure to take unnecessary risks in order to complete trips quickly. This can result in fatigue, reckless driving, and other factors that may increase their chances of causing a collision. Studies from across the country estimate that up to 3% of all crashes involve a driver working for a rideshare company.

If you’re wondering what happens after an accident involving a Lyft vehicle, you’ve come to the right place. In this article, we discuss what is and isn’t covered by Lyft’s liability insurance. Also, who could be liable for damages sustained in a rideshare accident?

Lyft Insurance: What You Need to Know

Lyft drivers are not employees instead they are independent contractors. Lyft’s liability coverage still covers them under some circumstances. This policy only comes into play in specific scenarios. Also, drivers are required to carry personal auto insurance policies.

Below, we discuss different “phases” of a Lyft driver’s activity in addition to which coverage may apply in each scenario:

The Driver’s App is Switched Off:

Much like a company is not responsible for collisions caused by employees outside of work, Lyft’s commercial auto insurance will not pay out benefits for accidents involving a Lyft driver who had their driver app switched off. Typically, the driver’s personal auto insurance will kick in to cover damages in this scenario, assuming the driver is liable for the crash.

The Driver Is Active on the App:

If the driver is involved in a collision while their app is turned on but has not received a ride request and is not transporting customers, the accident could fall under Lyft’s contingent liability coverage. As part of this plan, Lyft may cover up to $50,000 in medical expenses per person and up to $25,000 for property damage, assuming the Lyft driver caused the accident. The driver could be held responsible for any damages above these amounts.

The Driver Is Picking up or Dropping off a Passenger:

In this scenario, if the Lyft driver causes an accident, injuries and property damage sustained by his or her passengers and any other parties involved in the accident may be covered by Lyft’s commercial liability insurance policy (up to $1,000,000).

Who Can I Sue After an Accident Involving a Lyft Driver?

There are many different types of coverage that could be in play after a collision involving a Lyft driver. To determine liability, your lawyer will have to answer the questions listed here:

  • Who or what caused the crash?
  • Was the Lyft driver’s app switched on when the accident took place?
  • Was the Lyft driver waiting for a new ride request, collecting passengers, or dropping off customers?

Speak to a Skilled Rideshare Accident Attorney Today

It is imperative to contact an attorney before calling the insurance company. If you or a loved one has been in an accident, make sure to contact a trusted and experienced attorney. Our network of attorneys have years of experience dealing with accidents and personal injuries. Furthermore, they will negotiate with insurance companies to get you the medical help you need, cover expenses of your damaged vehicle, and get you the compensation you deserve. CALL US ANYTIME (281) 475-4535 or instead fill out a consultation form here to start the process.