As with any company that requires you to drive a vehicle, Lyft does have automotive insurance for drivers. hope you never have to use the insurance but if you need it, they offer it to all employees of Lyft. Lyft automotive insurance is valid nationwide, however New York does not recognize this insurance.
How Lyft Insurance Works
Lyft insurance is only active while you are in driver mode using the Lyft app. If you are not in driver mode then your personal insurance is the only insurance active for your vehicle. Lyft automotive insurance does not replace your personal insurance and you will need to maintain personal insurance to drive for Lyft.
Lyft’s Primary Insurance is designed to act as the primary insurance from the time you accept a ride requires until you have dropped off your passenger and ended the ride. This policy will protect you in case of an accident with up to one million dollars in coverage. If you have commercial insurance, this policy will work in excess of your current insurance.
Lyft has Contingent Liability Coverage which is designed to provide protection to you while you are in drive mode but have not accepted a ride request yet. This policy offers a maximum of fifty thousand dollars per person, one hundred thousand per accident and twenty five thousand for property damage. The Lyft driver does not have to pay a deductible under this policy.
Lyft also carries Contingent Collision Coverage which is designed to cover damage to your vehicle. You are required to have collision coverage on your personal insurance policy to qualify to receive this policy as well. This policy requires a twenty five hundred dollar deductible and covers up to fifty thousand dollars in physical damage to your vehicle. If you qualify for this policy it will work regardless if you are at fault for the accident or not. Lyft also offers a similar policy with the same requirements that covers physical damage to your vehicle that results from a non-collision incident. These incidents include fire, vandalism, and natural disasters. The deductibles and coverage amounts are the same as Contingent Collision Coverage.
Implications Of Lyft And Uber On Your Auto Insurance, Car Loans, And Car Leases
Drivers must always inform their insurance company that you are going to be a rideshare driver. If you don’t have a private policy that covers rideshares from your insurance company they may drop you from their services or choose to deny to pay for your insurance claim even if the accident was not rideshare related. If you have the proper policy though, you will always be covered
Companies such as Uber and Lyft are considered dependable sources of income to some auto loan lenders. If you have low credit or no credit you may still be approved but there is always a catch. Your interest rate will be extremely high and you most likely will not be able to refinance for a major portion of the loan due to your credit and the amount still owed on the vehicle.
You can also use Lyft and Uber for car leases because ridesharing with a company is considered a dependable source of income. Remember though that if you lease a vehicle you are not purchasing it and you will (in most cases) have a limit on the amount of miles you can put on the vehicle. You will also have relatively high lease prices due to low or no credit scores.
Medical Insurance Coverage Of The Driver In A Lyft Accident
Lyft covers all of our drivers with UM/UIM (Underinsured Motorist/ Uninsured Motorist) Insurance which is designed for when you are in an accident and you are already transporting a passenger. This insurance only works while transporting a passenger. If you are not at fault and the other driver is uninsured or underinsured Lyft will cover up to one million dollars in compensation for bodily damages that you or your passengers incur.
How Lyft Insurance Works In An Accident
If you are in an accident you should report it to Lyft as soon as possible so that they can start the insurance claims process. There are many different ways to contact Lyft, but in an accident or emergency, the Trust and Safety Team can be reached toll free at 1-855-865-9553. Please make sure to also file a claim with your personal insurance and provide proof of your personal automotive insurance to the relevant parties at the scene of the accident. Remember that calling the police to get an official report made is always the best decision because it can speed the claims process up considerably. The folks at Lyft understand that accidents happen and do not penalize drivers for having one. Please remember to act accordingly in an accident because you are a representative of the Lyft Driving Team.