How Is Insurance Handled After an Uber or Lyft Accident?

Unlike a standard car accident, an Uber or Lyft accident will involve the rideshare company and potential coverage from this source rather than just the other driver. Knowing who is responsible for paying for your accident and how to access the greatest amount of coverage possible can make for an easier recovery during this difficult time.

Who Pays for an Uber or Lyft Accident in California?

California is a fault or tort state when it comes to determining who pays for an automobile accident claim in Los Angeles. Under this rule, injured crash victims have the right to pursue coverage from the at-fault party after an accident. An investigation will be conducted after the Uber or Lyft accident to determine the cause of the crash.

When a rideshare accident occurs, if the rideshare driver is at fault for torts such as speeding or distracted driving, he or she will have a personal automobile insurance plan that can provide coverage for your losses. Liability insurance for bodily injuries and property damage is required for all drivers in California.

However, a unique aspect of an Uber or Lyft accident is that the rideshare company will also have coverage available for accidents involving one of its drivers. You may be able to access a commercial insurance policy on top of the individual driver’s insurance for supplemental coverage.

Rideshare Insurance Coverage Periods Based on Ride Status

Uber and Lyft both have $1 million insurance policies to cover car accidents involving their drivers. This commercial insurance is available to crash victims in differing amounts based on the phase or period of the ride at the time of the collision.

There are three periods:

• Period 1: the Uber or Lyft driver has logged into the app and is awaiting a ride request. Both companies provide coverage of up to $50,000 per person and $100,000 per accident in bodily injury liability insurance, plus $25,000 in property damage insurance ($30,000 from Lyft).

• Period 2: the rideshare driver has accepted a ride request and is on the way to pick up the passenger. Insurance from the rideshare company is available at a limit of $1 million when the driver is at fault for the accident or to provide contingent coverage.

• Period 3: the rideshare driver has picked up one or more passengers and has them in the vehicle. If an accident occurs at this time, Uber and Lyft both offer up to $1 million in liability coverage, as well as $1 million in uninsured and underinsured motorist insurance.

If the app is off and the driver is not working, the rideshare company will not offer any coverage for an accident. Only the rideshare driver’s personal policy would apply in this situation. Otherwise, Uber and Lyft will provide contingent or supplemental liability coverage.

How to File an Uber or Lyft Accident Insurance Claim

In the aftermath of an accident involving an on-duty Uber or Lyft driver in California, you must notify the rideshare company of the crash. Call your own auto insurance provider, as well. The insurance companies will conduct an investigation to determine fault. You will most likely be contacted by Uber or Lyft’s insurance provider shortly after your collision. Do not agree to give the insurance provider a recorded statement about your crash or injuries before getting legal guidance from a personal injury attorney. If you are offered a quick settlement, don’t accept before consulting with an attorney. Rideshare companies and their insurance providers are notorious for protecting their own profits by underpaying claimants. A smart and capable rideshare accident attorney in Los Angeles is your best chance for maximizing your financial recovery.