How New Insurance Initiative and Policies Protect Uber and Lyft Drivers
There have been some recent and marked changes in the insurance policies for both rideshare companies Uber and Lyft. Here are the basics which you need to know which should clear up some of the areas of vagueness.
If you are a customer/passenger:
Lyft and Uber both carry significant general liability or umbrella policies of $1 million dollars in order to cover any injuries you may incur while riding in a providers vehicle. Sure, there are some wacky scenarios which they many try to deny claims, but in general, you are protected. Simple enough, right? Well, if you are a driver, here is where it gets a bit more complicated.
Lyft Insurance Plan:
Here are the nuts and bolts of it. You are operating under two different policies. One covers things when you are officially hired by a customer and providing that service through the app. Another policy is in play when you are simply the driver, with no fare engaged. In the past, Lyft simply placed this entire responsibility on you the driver and your policy.
Let’s just say that you get into an accident in the middle of a ride, this is when Lyft will be your primary insurance carrier for the incident. One thing to remember though, this is for liability coverage only for the passenger. Want to get your car’s damages fixed? You are gonna have to report it to your agency.
Uber Insurance Policy Coverage
Competition breeds one up man ship. So is the case here when Lyft upgraded their policy offerings. Once this went public, Uber joined in the party with their own enhanced coverage.
The details are similar, but Ubers policy acts only as a secondary provider, leaving your policy to always be hit first. Think of it as back up insurance.
Needless to say, it is important for rideshare providers, no matter what firm they work for, to look into their insurance requirements and ensure that they are fully covered, no matter what things may bring their way. It is also wise to perhaps pursue an agent who has extensive experience with the companies and the unique liabilities they present.