Uber/Lyft Liability Insurance and How It Works

Posted by Phillip Warren | Mar 15, 2023 | 0 Comments

As drivers in Florida, we are all aware of the increased number of Uber® and Lyft® drivers there are on the roads.  It would be difficult to find someone who hasn't used their services.  Millions of drivers nationwide have become Uber or Lyft drivers to generate flexible full-time or part-time income.  In so doing, rideshare drivers are essentially operating their own small business out of their vehicles.  Just like any other business that invites you into their establishment to become a patron, rideshare drivers need insurance to protect their business and reduce their financial liability.  This is why Uber and Lyft offer rideshare insurance for their driver-partners. 

uber/lyft accident

Rideshare Insurance for Drivers

To ensure consumers they are offering insured services for rideshare customers, Uber and Lyft provide insurance coverage for their drivers up to certain limits depending on whether the driver is “online” (has the Uber or Lyft app on) and waiting to receive a request for a ride or has a customer in the vehicle enroute to his, her, or their destination.  Know that rideshare insurance does not cover a driver's vehicle when the app is closed.  During those times, the driver's personal auto policy will apply to offer any coverage available.  Uber and Lyft provide rideshare insurance when the app is on and their driver is online with varying limits depending on whether the driver is awaiting a customer or has a customer enroute.

Rideshare Limits When the App is On and the Driver is Waiting for a Ride Request

When a rideshare driver has the Uber of Lyft app on and is waiting for a ride request both Uber and Lyft offer the same limits of insurance:

  • $50,000 per person for bodily injury
  • $100,000 per accident for bodily injury
  • $25,000 per accident for property damage

Rideshare Limits When the Driver is Enroute to Pick Up a Customer or During Rides

When a rideshare driver has accepted a ride and is enroute to pick up a waiting customer or has the customer inside the vehicle and enroute to his, her, or their destination, Uber and Lyft offer the following limits of insurance:

  • At least $1,000,000 for third-party auto liability
  • Uninsured/Underinsured (“UM”) motorist coverage and first-party coverages (this may include PIP, MedPay, and/or occupational accident coverage which varies by state)
  • Contingent comprehensive and collision coverage (up to the actual cash value of the vehicle with a $2,500 deductible)

You can review each company's insurance practices here: Uber and Lyft.

The takeaway: a Uber or Lyft rider who suffers a personal injury as a result of a car accident with somebody who was uninsured or underinsured will have $1M in rideshare insurance accessible to compensate for their personal injuries and damages.

Why Rideshare Insurance Should Matter to You

If you have been involved in an accident while riding in an Uber or Lyft you may not understand that rideshare insurance is available to provide coverage for your injuries and damages.  For this reason, you may not have pursued a claim against Uber of Lyft to recover for your injuries.  Recovering on a rideshare claim can be difficult and complex.  If you have been injured in a rideshare accident, it is in your best interest to contact an experienced insurance attorney, like our attorneys at Taylor, Warren, Weidner & Hancock, to assist you in filing your Uber or Lyft claim and pursuing your recovery.  We never charge any fee or cost or require any obligation on your part to simply answer your questions and review your claim.  If you have questions about a rideshare accident, contact us.

About the Author

Phillip Warren

Phillip devotes the same honor, courage, and commitment to his clients as he did in the USMC.


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