Both Uber and Lyft require their drivers to have insurance. Both ridesharing apps require their drivers to maintain personal auto insurance that meets the minimum requirements of their state. Additionally, both companies provide insurance coverage whenever the driver switches on the app.
According to the Louisiana Department of Insurance, the minimum requirements for drivers in Louisiana mandate that all drivers must carry liability coverage for any vehicles that they own. Louisiana uses the 15/30/25 liability limit rule. This means that drivers are covered for up to $15,000 for bodily injury to an individual, $30,000 for bodily injuries to multiple people per accident, and $25,000 to cover property damages. These amounts can vary depending on the extent of the damages.
Lyft and Uber’s Policies
When the driver’s rideshare app is off, the driver’s personal auto insurance covers the vehicle. When the rideshare app is switched on, and the driver is waiting for a ride request, Lyft provides third-party liability insurance if the driver’s personal insurance is not applicable. The coverage amounts are as follows:
- Bodily injury – $50,000 per person
- Bodily injury – $100,000 per accident
- Property damage – $25,000 per accident
When the rideshare driver is using Lyft, the company provides insurance for accidents when picking up passengers and when transporting passengers. The coverage details are as follows:
- Third-party auto liability insurance, in the amount of up to $1,000,000. However, it is important to note these policies may vary from state to state. Third-party auto liability insurance is meant to cover the bodily injuries and personal property damage of someone other than the driver and passenger. For example, another motorist who is sharing the roadway with a Lyft driver’s vehicle or a pedestrian.
- Uninsured or underinsured motorists. The insurance Lyft provides can cover injuries sustained by the driver and passengers if an accident is caused by an uninsured or underinsured motorist.
- Contingent comprehensive and collision insurance that covers the determined cash value of the vehicle. This only applies if the driver has a personal auto insurance policy that includes comprehensive and collision coverage. Contingent collision and comprehensive insurance cover any damage to the driver up to its total cash value, not including the deductible ($2,500). The driver will be covered as long as they carry their own personal comprehensive and collision insurance.
Like Lyft’s ridesharing service, Uber’s insurance coverage is contingent on whether the app is on or off. If the driver is offline, the driver’s personal insurance is applicable. However, the driver is still required to maintain auto insurance that meets their state’s requirements.
If the driver is available for a request or is waiting for a request for a ride, Uber provides insurance coverage in the case of an accident. If the driver’s personal auto insurance does not apply, Uber offers third-party liability insurance in the case of an accident.
Uber’s third-party liability insurance covers:
- Bodily injury up to $50,000 per person;
- Bodily injury up to $100,000 per accident; and
- For a single accident, up to $25,000 for property damage
However, if an accident occurs while the driver is en route to pick up their passengers or during the ride, Uber provides the following insurance coverage:
- Up to $1,000,000 in third party liability coverage
- Bodily injury for uninsured or underinsured motorists
- Comprehensive and collision insurance that covers the cash value of the vehicle, with a $1,000 deductible
For a free legal consultation, call (337) 777-7777
What to Do After an Accident
If you were involved in an accident with a rideshare service, first, ensure that everyone involved in the accident is safe. If you were injured, seek medical treatment immediately. If necessary, call 911 and file a police report. If you can, it can be helpful to document the accident with photos of the property damage and/or injuries for insurance purposes.
If you were involved in an accident as a passenger of an Uber or Lyft driver, you may be entitled to seek damages for your injuries. As a passenger, it is highly unlikely that you were at fault for the accident, but having a ridesharing service involved can complicate your case. That is why an attorney may be invaluable in determining who was at fault in your accident.
If you are injured in an accident involving a rideshare driver and would like to pursue legal action, you must report the accident within one year, according to statute CC Art. 3492
It can be confusing to determine whether Uber and Lyft drivers have insurance when you are involved in this sort of accident. Ridesharing is a relatively new industry, and the companies that contract drivers still share a degree of liability even though their drivers are using their personal vehicles.
Ridesharing companies owe their passengers, drivers, and the general public a duty of care to adequately prevent and resolve the results of an accident.
If you or someone you care about was involved in an accident involving a Lyft or Uber driver, call (337) 777-7777 today for a free consultation.