Sumter Lyft and Uber Accident and Injury Attorneys

In order to drive for a rideshare company, an individual is required to have their own auto insurance policy. This is because Uber and Lyft classify their drivers as independent contractors rather than employees, relieving them of a large chunk of liability. Uber and Lyft do have liability insurance, too, but determining whose insurance covers what person and when it kicks in can sometimes be complicated. And make no mistake – this is on purpose.

Generally, however, rideshare companies provide coverage when drivers are on the job – meaning they’re actively transporting passengers at the time of a car accident. The driver is logged into the app, the passenger is logged into the app, and the ride is in progress. Here’s an overview of how rideshare company liability insurance typically works in the event of an accident.

• If the driver’s app is on (driving mode) but they do not have a passenger:
  • Up to $50,000 for each injured person
  • Up to $100,000 total injury coverage per accident
  • Up to $25,000 for property damage
• If the driver is in driving mode and does have a passenger:
  • Up to $1 million total coverage

For example, an Uber driver has their app on and is actively searching for a passenger, but doesn’t yet have a ride request. They run a stop sign and hit another car. The injured person may be eligible for up to $50,000 in damages. On the other hand, if the Uber driver had been in driving mode with a passenger, the other driver (as well as the passenger) would be eligible for up to a million dollars in damages for their injuries.