Compensation for Uber & Lyft Ride-sharing Car Accidents
Uber & Lyft ride-sharing car accidents are on the rise. These and other ride-share companies have become a popular alternative to conventional taxicabs from Cape Cod to Boston, Massachusetts and all over the country with drivers everywhere. You can see their little glowing windshield signs picking up and dropping off tourists and business people at the Hampton Inn in West Yarmouth, or bringing shoppers to and from Whole Foods at Southwind Plaza in Hyannis. Using a ride-share can be a great option for students or the elderly who don’t have a car, as well as people who want to bar hop and drink responsibly. With so many of these newly employed “cabbies” driving around, it’s inevitable that some will be involved in a fender bender or even more serious car accident. This raises the question: Who is liable for my injuries when involved as a passenger in a ride-sharing car crash?
What Do Uber, Lyft and Other Ride-share Companies Cover?
Ride-sharing companies such as Uber and Lyft, along with the insurance industry, have created a system dividing ridesharing into three different periods.
● Period 1: The vehicle is in use, and the ride-share app is online.
● Period 2: The vehicle is in use, the ride-share app is online, a passenger has been accepted and is yet to be picked up.
● Period 3: Vehicle is in use, and the passenger(s) is either being transported in the vehicle or is exiting the vehicle at the destination.
Uber and Lyft’s insurance policies will provide full coverage when a car accident occurs during Period 2 or 3, however, it is up to the driver’s to have personal coverage for Period 1 as well as any other regular car use (i.e. commuting to work, running errands and other personal uses).
What Is A Ride-share Insurance Policy?
Because many personal auto insurance policies will not cover accidents which occur when driving for a ride-share company, many drivers need to cover themselves with ride-share insurance. Though it has been a slow transition, many of the insurance companies are beginning to come around and roll out insurance policies specifically for ride-share drivers.
Most ride-share insurance policies will offer either “gap coverage” or “extended coverage”. Gap coverage will cover a driver through Period 1 and if an accident happens during Period 2 or 3, it will fall onto the ride-share company’s policy, whereas extended coverage will cover all periods.
Who Will Cover Your Injury?
As you can see determining liability and compensation in a car accident involving a ride-share driver can get complicated quickly. With so many overlaps in coverage, the injured claimant will likely see multiple insurance companies passing the buck. Whether the injured party is a ride-share passenger involved in an accident or a third party who was struck by a ride-share driver, they’ll need an experienced personal injury attorney to help you determine who is responsible for paying the compensation.