When Your Ride Goes Wrong
Rideshare companies like Uber and Lyft have changed personal transportation forever. At the push of a button a car arrives in minutes to whisk you away. It’s something straight off the pages of a sci-fi novel. The convenience of these services is great, but what happens when your ride goes wrong? Who is liable when your driver gets into an accident or you are injured by a rideshare driver? Call the attorneys of Zayed Law Offices at 855.726.1616. We are here to answer your questions. Time is of the essence in any personal injury case, so call today.
Did you know driving for a rideshare company could violate the terms of your insurance policy? In fact some insurance companies will cancel your policy if they get wind that you’re driving for a rideshare company. Most personal auto insurance policies contain what is known as a livery exception. A livery exception states that your policy will not apply while the vehicle is being used as a public or livery conveyance. Translated to plain English, if you are transporting people in exchange for money your insurance will not apply if you get in an accident. If you drive carpool and this made you nervous, don’t worry carpools do not fall under this exception. So you can keep collecting gas money from your coworkers without having to worry.
In the past if you wanted a policy without a livery exception you had to buy commercial auto insurance. This may not sound like a huge burden, but commercial automobile insurance policies can be pricy. The high cost puts commercial insurance out of reach of the rideshare driver just trying to make a few extra bucks on the weekend.
Luckily, insurance companies see that ridesharing is not a passing fad. In order to exploit this new market many insurance companies now offer “rideshare friendly” insurance policies. These policies are cheaper than traditional commercial insurance policies and won’t be void if you have an accident while driving for a rideshare company. Not every insurance company offers “rideshare friendly” policies nor are they available in every state. “Rideshare friendly” insurance policies are available in Illinois, so if you’re a rideshare driver it is in your best interest to get one of these policies. Continuing to drive for a rideshare company without one could put you at risk.
Uber provides insurance for its rideshare drivers. The type and amount of insurance depends on the driver’s involvement with Uber at the time of the accident. For example, if a driver has not activated drive mode in the app Uber provides them with no insurance.
When a driver has activated drive mode in the Uber app and waiting for a ride request Uber provides them with what’s known as a 50/100 insurance policy. This means that Uber’s insurance has policy limits of $50,000 per person and $100,000 per occurance. Uber carries this insurance policy for drivers with lower automobile policy limits. So if you drive for Uber and your policy limits are higher than $50,000/$100,000 this insurance will not help you if you have an accident.
Uber provides substantially more insurance coverage for drivers en route to pick up a rider. When a driver is on their way to pick up a rider Uber provides them with at least $1 million of total liability coverage. Uber also provides drivers with uninsured and underinsured motorist coverage while they are en route to a rider. Uninsured coverage protects you if the person responsible for your injury was uninsured. Whereas underinsured coverage allows you to collect up to your policy limits if you were injured by a driver with a lower policy limit than yours. If you would like to know more about uninsured and underinsured motorist coverage check out our blog about it at https://www.zayedlawoffices.com/uninsured-underinsured-motorist-coverage/. Our blog contains a wealth of legal knowledge and is updated regularly. So make sure to bookmark it.
Uber differentiates between when a driver is on their way to pick up a rider and when they have a rider in their car. However, the insurance that they provide is almost identical. While a rider is in their car Uber provides their drivers with at least $1 million in total liability coverage along with uninsured and underinsured motorist coverage.
Like Uber the amount of insurance Lyft extends to their drivers depends on how involved with Lyft they were at the time of the accident. Just like Uber if the Lyft driver has not activated drive mode on their app Lyft will not provide any sort of insurance coverage.
When the driver has activated drive mode in the Lyft app Lyft extends some insurance coverage in the event that the driver’s personal insurance does not respond. This policy has limits of $50,000 per person and $100,000 per accident.
Unlike Uber, Lyft does not differentiate between drivers who have accepted a ride request and those who have picked up a passenger. This means that from the time a Lyft driver accepts a ride request till the ride has ended in the app they are covered by a $1,000,000 per accident policy. If a Lyft driver carries commercial or a “rideshare friendly” policy Lyft’s policy will act as excess insurance coverage. This means that Lyft’s insurance will cover any damages between the individual drivers policy limits and $1,000,000.
Ensuring You’re Protected
Whether you’re a rideshare driver, passenger, or just a fellow citizen. If you’re injured through someone else’s negligence you deserve justice. Call the attorneys of Zayed Law Offices at 855.726.1616 or chat with us online 24/7 at https://www.zayedlawoffices.com/. We are here to help you get the justice you deserve.