Uber and Lyft are convenient transportation, but accidents involving rideshare vehicles often result in confusing insurance coverage and complex liability questions, especially when injuries are involved. Multiple tiers of insurance coverage may apply, and understanding who pays for what can be overwhelming. 

Uber and Lyft provide commercial insurance based on the driver’s status at the time of the accident. The driver’s status plays a major role in determining what insurance coverage is available, and it is broken down into three periods:

• Period 0: Driver is not using the app or transporting a passenger. Only the driver’s personal auto insurance applies in an accident.
• Period 1: Driver is logged into the app and waiting for a ride request. Limited liability coverage of up to $50,000 per person for bodily injury, $100,000 per accident, and $25,000 for property damage may be available.
• Periods 2 and 3: The Driver has accepted a ride or is actively transporting a passenger. Coverage of up to $1.5 million commercial liability is in effect, along with uninsured/underinsured motorist coverage.

Rideshare accidents not only affect passengers in the vehicle at the time of the accident. Also, you may be covered by company policies if you were injured as a driver or passenger in another vehicle, as a pedestrian, cyclist, or motorcycle rider.

If another driver caused the accident while you were a passenger in an Uber or Lyft, the other driver’s insurance should be the first to pay for injuries and damages. 

Additionally, Uber and Lyft classify their drivers as independent contractors rather than employees, which can limit the company’s legal responsibility for accidents. Courts may examine several factors, such as whether the driver was logged into the app, whether the company exercised control over the driver’s work, or whether unsafe driving was encouraged through performance incentives, to determine whether Uber or Lyft can be directly accountable for the accident and injuries.

How Does the Driver’s Personal Auto Policy Affect Coverage?

Most standard auto insurance policies exclude coverage if a vehicle is being used for commercial purposes at the time of an accident, such as driving for a rideshare company. This can present significant problems if you were injured in a crash caused by an Uber or Lyft driver when the rideshare company’s coverage is limited, such as when the driver is waiting for a ride request. 

If the driver did not purchase a special rideshare endorsement or commercial policy with more comprehensive coverage, then your injuries and losses may not be covered by the driver’s policy. This overlap in coverage can also lead to liability disputes. With such complex insurance coverages, it is crucial to have an experienced South Jersey Uber and Lyft accident lawyer review your situation to help protect your rights and ensure you receive compensation.

What Should I Do If I Am Injured in an Uber or Lyft Accident?

Following an Uber or Lyft accident, you should report the accident to the police and the rideshare company. Exchange insurance and contact information with the driver, gather contact information and statements from witnesses, and seek immediate medical attention. Do not accept fault, do not apologize, and do not speak to insurance companies without first consulting an experienced South Jersey Uber and Lyft accident lawyer.  

Uber and Lyft accidents are complex, especially with overlapping insurance policies when dealing with injuries and medical bills. An experienced Uber and Lyft accident lawyer can help determine liability, handle insurance companies, protect your rights, and ensure you recover the compensation you deserve.

South Jersey Uber and Lyft Accident Lawyers at Kitrick, McWeeney & Wells, LLC Help Clients Navigate Complex Rideshare Insurance CoverageUnderstanding insurance coverage for injuries sustained in an accident with a rideshare driver can be confusing and overwhelming. If you suffered injuries in a rideshare accident, the skilled South Jersey Uber and Lyft accident lawyers at Kitrick, McWeeney & Wells, LLC can help you navigate insurance coverage and seek the compensation you deserve. Call today at 732-920-8383 or contact us online to schedule a free consultation. Located in Manasquan and Brick, New Jersey, we serve clients across the state.