Does Lyft Notify Your Insurance?

Does Lyft Notify Your Insurance?

Lyft will not notify your insurance company if you become one of its drivers. Lyft will supplement your existing policy with its own insurance, which is designed to protect your passengers in the event of an accident.  

What driving for Lyft means for your insurance 

Driving for Lyft is a great way to earn extra money. But some people hesitate to sign up due to fears about their insurance rates spiking. 

One common concern is that Lyft will notify your current insurer that you’re driving for the company. But this doesn’t happen. It’s up to you to tell your insurer about your newfound source of income.  

However, Lyft will verify that you have insurance. If you lose your coverage, then you will also lose your ability to drive for the company. Lyft takes this responsibility very seriously. 

Will your personal insurance cover Lyft passengers? 

Almost always, the answer to this question is “no.” Most conventional insurance policies exclude damages incurred while performing paid services. 

For example, let’s say that you’re driving for Lyft when you accidentally rear-end the vehicle in front of you. If you try to file a claim with your insurer, it’s almost certain that it will be rejected, since you were engaged in commercial activity at the time.  

Don’t despair, however. You have three options for obtaining the coverage you need:    

  1. Buy a commercial insurance policy for your vehicle: This will protect your riders and yourself, should you end up causing an accident. 
  2. Add commercial coverage to your existing policy: Many companies offer this service to their existing customers. 
  3. Use Lyft’s insurance when driving for the company instead of purchasing commercial coverage: This is by far the most popular option. Lyft will provide coverage with a $1 million maximum payout per incident (depending on the period in which the accident occurred). This is available at no cost to you and still applies even if you purchase a separate commercial policy. 

How Lyft’s insurance works 

It’s important to remember that Lyft’s insurance programs are NOT intended to replace your existing coverage. They only apply during the times when you’re signed into the Lyft app. Here’s how these policies work: 

  • Coverage when you’re signed into the app and waiting for an assignment: Lyft will cover an accident caused by you during these times. Coverage is limited to $50,000 per person, $100,000 per incident, and $25,000 for property damage.   
  • Coverage when you’re fulfilling a ride request: Lyft insurance will cover an accident up to a maximum of $1 million from the moment you accept the request to the moment the passenger arrives at his or her destination.  

What if the other driver causes the accident?  

In such a case, anyone in your vehicle who suffered injuries or property damage will need to file a claim with the at-fault party’s insurer.  

If the other party’s insurance isn’t enough to pay for the damages or the at-fault driver has no insurance, then Lyft’s underinsured motorist protection will cover the difference up to a maximum of $1 million if you were fulfilling a ride request.  

Talking to an attorney after an auto accident is always a good idea 

Insurance is a great thing to have. But, by itself, it may not be enough to provide you and your passengers with the coverage you need. Here’s why: 

  • Insurance companies are in business to make money: This means they have a vested interest in keeping their costs to a minimum. In some cases, this can lead to accident victims being pressured to accept a token level of compensation instead of the full amount they deserve. 
  • The causes of an auto accident are not always clear: You may find yourself blamed for pain and suffering that you didn’t cause. Or there may be more to the car collision than meets the eye. It often takes a skilled legal professional to uncover the truth that others are trying to hide. 
  • Talking to an Ellis Injury Law attorney will cost you nothing: We offer free consultations and we work on contingency. So don’t let fears of high legal bills prevent you from seeking our help. 

The Lyft attorneys here at Ellis Injury Law have recovered more than $350 million for their clients over the years, a figure which speaks for itself. Get in touch with us today to find out what we can do for you. We’re available 24/7 for your convenience.