In the event of an accident, both drivers and passengers for Uber and Lyft can rely on some insurance coverage provided by the respective companies. Both rideshare platforms provide a commercial liability policy that offers some protection to passengers and drivers if a crash occurs. The policies have a one-million-dollar minimum as per Georgia law.
While this might seem like more than enough coverage, the policy limits are usually per-accident and not per-person. This means that the insurance policy only covers up to a million dollars for all expenses in one accident. For example, if there are six people injured in the accident, the million dollars of coverage will be shared between them. Even still, nationally, Uber and Lyft offer better insurance coverage for passengers injured in an accident than most taxicab companies.
Drivers can also obtain commercial insurance policies or personal car insurance, which may cover some of the costs of a rideshare passenger’s injuries. Unfortunately, many auto insurance policies have a business use exception that limits or denies coverage if the insured uses their car for anything other than personal use. It’s critical to note that the commercial liability insurance through Uber and Lyft only applies after the driver’s personal insurance coverage is exhausted.
If this wasn’t complicated enough, the Uber or Lyft driver isn’t always the at-fault party in the accident. Suppose the crash is the fault of another motorist. In that case, injured passengers need to attempt to recover damages from the at-fault driver with their own insurance carrier’s help.
Uber and Lyft accidents often involve a complex dynamic of various insurance coverage, which is challenging to navigate on your own. Unfortunately, if you are injured in a multi-vehicle accident or sustain severe or catastrophic damages, the rideshare company’s policy maximum may not be enough. Anyone involved in a rideshare collision should contact a Gwinnett County ridesharing attorney as soon as possible.
