Will LYFT Cover Accidents?
The rising popularity of ridesharing services like LYFT raises important questions about liability for personal injury and property damage after a collision. Does LYFT cover accidents and can you bring a lawsuit against the company if driver negligence was to blame?
Drivers for LYFT and some other ridesharing companies are required to purchase the minimum auto insurance required in the state they live in. For LYFT drivers in California, this equates to:
- $15,000 in bodily injury per person
- $30,000 in bodily injury per accident
- $15,000 in uninsured motorist bodily injury
- $5,000 in property damage
This personal insurance will apply to drivers when their LYFT app is turned off, and they are not looking for passenger requests. If there is an accident and the driver’s personal insurance is insufficient to cover your damages, you may need to tap into your own uninsured/underinsured policy. In cases like this, it’s a good idea to speak with a LYFT accident lawyer who can help you identify available sources of compensation.
When does LYFT insurance coverage kick in?
Once a driver turns the app on, LYFT’s contingent insurance kicks in. During this period, the driver’s own policy is still the primary source of insurance, but accident victims can seek additional compensation from LYFT’s liability or underinsured policies.
Under California State Bill AB 2293, Transportation Network Companies (TNCs) such as LYFT are required to provide primary third-party liability insurance and $200,000 of excess liability coverage while their drivers have their apps on, but have yet to accept a ride request. This is known as phase 1, or period 1.
Phase 1 auto liability for a LYFT accident includes up to $30,000 per accident for property damage, up to $50,000 per person for bodily injury, and up to $100,000 per accident for bodily injury.
Once the LYFT driver is paired with a passenger, LYFT’s $1 million liability insurance policy takes effect. This policy is designed to cover both the driver and any passengers.
How does LYFT insurance protect passengers?
Let’s say you were taking a LYFT when, en route to your destination, another motorist hits the rideshare vehicle. The collision wasn’t a major one, but you still suffered whiplash and a concussion. In this accident scenario, you would first seek compensation from the at-fault driver’s liability insurance. If the party in question doesn’t have car insurance or is underinsured, you would seek compensation through LYFT’s (UM/UIM) insurance policy.
This policy should provide up to $1 million per accident, but it is only applicable from the time you are picked up by your driver until the ride is ended in the app. This $1 million policy also covers accidents when they are the fault of the LYFT driver.
Accident claims involving pedestrians
Passengers aren’t the only ones vulnerable to injuries in a LYFT accident. Rideshare drivers who are distracted, speeding, or violate traffic laws can also injure pedestrians, cyclists, and other motorists on the road.
In cases where the driver is logged off the app at the time of the collision, it is questionable if LYFT’s insurance will cover any damages. LYFT drivers are classified as “independent contractors,” which shields their parent company from legal liability to some degree. In situations like these, it would be challenging to sue LYFT without an experienced car accident attorney.
Whether you are a passenger, another driver, or a pedestrian, always seek medical care after being in a rideshare vehicle accident. Insurance companies require documentation of your injuries, and if you wait to see a doctor, this could undermine the value of your claim.
Call Ellis Injury Law for help with a LYFT accident claim
At Ellis Injury Law, we have the skill and resources to successfully navigate the complexities of rideshare accident claims. By examining the facts of your case, we can determine the best route for pursuing maximum compensation, and there are no fees until we win or settle your claim. Schedule a free, no-obligation consultation and protect your rights after being hurt in a LYFT accident.