How does Uber/Lyft insurance work for rideshare drivers?

The million dollar umbrella insurance coverage provided by Uber/Lyft is well-known, but it is also common to hear drivers ask “what is covered by Uber/Lyft Insurance?”, “How does it work?”,  “I get into an accident on my way to pick up a passenger – how am I covered by UBER/LYFT insurance?”…

Considering both legal and commercial aspects, Inpooling would like to share with our drivers some insights.

When does the Uber/Lyft company insurance come into effect?

Simply put, the Uber/Lyft company insurance will cover any accident taking place when the App is on, covering Period 1, 2 and 3 (See the graphic below). However, the million dollar coverage (Umbrella liability coverage) is only applicable when the trip request is accepted, known as Period 2 and Period 3. And it covers: 1) Third-party bodily injury and property damage caused to a third party 2) Injury caused by an Uninsured/Underinsured Motorist 3)Collision and Comprehensive with 1K deductible by Uber and 2.5K by Lyft

The problem often occurs while the App is on and awaiting a trip request, known as Period 1. Starting from July 1, 2015, Uber/Lyft are required to provide coverage for the Period 1 with coverage limits of $100,000/$50,000/$30,000 in California for rideshare driver partners’ total liability to others, for liability injury and liability property damage. At the same time, the personal auto policy will no longer apply while the App is on.

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(Source: Uber – https://www.uber.com/newsroom/an-update-on-insurance/ and Lyft -https://help.lyft.com/hc/en-us/articles/115013080548-Insurance-Policy)

* About Inpooling: An on-line group insurance community aims to provide cheaper and better GROUP auto-insurance for rideshare drivers. Better insurance by virtue of collective power!

 

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