Does LYFT Insure its Drivers?

Ridesharing services like LYFT are a convenient and cost-effective means of getting to local destinations. Cheaper than taxis, and faster than public transport, LYFT has become a staple for many Californians. But what happens if your LYFT driver crashes while you are a passenger? Does LYFT cover its drivers with liability insurance?  

Different levels of LYFT coverage  

The short answer is yes, but the extent of coverage will depend on if the driver has their app turned on and is waiting for a ride request, is in transit to pick up their passenger, or driving the passenger when the collision occurs.   

If you were in an accident while using the LYFT rideshare service, seek legal advice from an experienced Los Angeles Uber accident attorney at Ellis Injury Law. Our legal team is well-versed in rideshare accident claims and knows how to negotiate with reticent insurance companies that want to reduce their financial exposure. 

By aligning yourself with a proven law firm, you can increase your chances of securing the compensation you deserve for missed time from work, medical expenses, pain, and emotional suffering. Our mission is to obtain justice for our personal injury clients by maximizing the value of their claims. 

How LYFT insures its drivers 

You’ve probably heard that LYFT carries a hefty $1 million insurance policy for accidents. While true, this primary liability coverage is only applicable at certain times. 

LYFT has three separate insurance coverages for their drivers. These include: 

  • $1 million Primary Auto liability 
  • Contingent comprehensive & collision  
  • Uninsured/Underinsured Motorist (UM/UIM) 

When the driver’s app is on and they are available and in ‘driver mode’ awaiting a ride request, the company’s contingent liability coverage kicks in: 

  • $50,000 per person for bodily injury 
  • $100,000 limit per accident for bodily injury 
  • $25,000 per accident for property damage 

The above coverage is “contingent,” which means that the contract drivers for LYFT must first file a claim on their own, personal policy before the LYFT coverage will kick in. LYFT’s collision and comprehension coverage is only available to drivers who have this coverage on their own auto policies, and apply only if another driver is at fault. 

LYFT’s full coverage of $1 million per accident applies from the moment the LYFT driver has accepted a ride request to the moment the passenger is dropped off at their destination and the ride is ended in the app. 

Rideshare accidents with underinsured drivers 

While en route to pick up or transporting a passenger, LYFT drivers are also provided coverage for wrecks with underinsured and uninsured motorists. Every state has laws that will determine the limit on the UM/ UIM policies, but these can afford up to $1 million in coverage. 

While LYFT insurance policies may seem generous at first glance, any accident that results in severe, life-threatening injuries can easily exceed these coverage limits. 

Traumatic brain injuries and spinal cord damage that results in paralysis can rack up hundreds of thousands of dollars in hospital bills, and call for ongoing medical care.  

Which parties does LYFT insurance cover? 

  • A LYFT driver who is harmed because of another negligent driver 
  • A LYFT passenger, regardless of who was to blame for the accident 
  • A pedestrian or bystander injured by a LYFT driver while the app is on 
  • Other motorists or their passengers injured in a crash where a LYFT driver is responsible 

Involved in a LYFT accident? 

In summary, LYFT does insure its drivers, but in some cases, their liability limits are exceedingly low. A serious collision can tap out this coverage very quickly, leaving victims to deal with the driver’s personal auto insurance carrier. This is not a battle you want to assume on your own.  

Ellis Injury Law leverages the resources and knowledge to handle your LYFT claim with efficiency and attention to detail.  Explore your options by talking to a reputable car accident lawyer in Southern California today. Our staff is available 24/7 to take your calls, and we are proud to offer award-winning representation on a no-win, no recovery basis, so there are no upfront fees to worry about.