Insurance Coverage Checklist for Uber/Lyft Passengers and Drivers

One of the most complicated aspects of rideshare accidents is insurance. Drivers carry their own insurance, but the vast majority of personal car insurance policies specifically exclude driving for commercial activities. That’s why rideshare companies like Uber and Lyft provide their own insurance coverage for drivers who are logged on and actively working.

However, as a passenger or driver, it’s still important that you protect yourself and make sure you are always covered. Looking for legal help after a rideshare accident in Oklahoma? Contact Cunningham & Mears to set up a consultation with our team of car accident lawyers now.

Rideshare insurance basics

Both Uber and Lyft offer up to $1 million in liability coverage, depending on what stage a driver is in during a trip. The stages include:

• Stage zero: Driver is in their vehicle and does not have the app on. The rideshare company’s mandated coverage typically does not apply at this stage. The driver’s personal insurance may be
• Stage one: When a driver is logged into the app but has not yet accepted a ride, there is limited liability coverage of $50,000 per injured person, $100,000 per accident total for bodily injury, and $25,000 for property damage.
• Stage two: This applies when a driver accepts a trip and is en route to their customer. At this point, the $1 million liability insurance coverage applies.
• Stage three: This stage covers the time from picking up a passenger to dropping them off. The driver has $1 million in liability insurance coverage at this stage.

Checklist for passengers

As a passenger, you shouldn’t have to worry about the driver’s insurance and whether or not you are covered by an insurance policy. However, being aware of the coverage available can give you peace of mind. Use this checklist to stay safe:

• Confirm that the ride is active: When the driver accepts your ride in the app, the $1 million insurance coverage should apply, and continue until you’re dropped off. Don’t let a driver try to take a trip “off the books” or offer you a lower price if you pay in cash or out of the app. Once the trip is no longer in the rideshare app, you lose that company’s protection—and the driver’s personal insurance may deny coverage if the policy has a rideshare or commercial use exclusion.
• Collect insurance information: If you are involved in a crash while in a rideshare vehicle, get insurance information immediately. The driver should be able to provide you with their personal insurance information, and the rideshare driver should also give you contact information for their rideshare company.
• Verify the company’s insurance coverage: After an accident, check the company’s website and verify the amount and type of insurance they offer when one of their drivers is involved in a collision.

Checklist for drivers

Rideshare drivers should do everything they can to protect their passengers and themselves. While Uber and Lyft provide substantial insurance coverage, you may need to go through additional steps for you and your passengers to get covered:

• Keep trips on the books: It’s frustrating that Uber and Lyft take a chunk of customers’ payments, but taking trips off the books isn’t the solution. Once you accept a trip off the app, Uber or Lyft coverage no longer applies. Should your insurance company find out that you were driving for work, they may refuse all compensation. This puts you at risk of being sued.
• Check on your personal policy: Verify whether or not your policy covers commercial activity. The majority of insurance providers do not. Find out if you can add a rideshare endorsement to your policy to cover accidents when you’re on the clock.
• Keep proof of coverage on hand: You should be able to download proof of insurance coverage from Uber or Lyft. Keep it in your vehicle at all times so you can give it to your passengers if you’re involved in an accident.
• Report accidents right away: Report any rideshare accidents to your rideshare company immediately. Waiting too long may make it look like you’re attempting to hide the accident. It can also lead to you being removed from the platform.

Common mistakes to avoid

Drivers and riders may make mistakes that delay their payout or make it difficult to get any compensation at all. Keep these in mind after a collision:

• Don’t assume rideshare coverage pays out immediately. While rideshare coverage may be easier to navigate than a driver’s personal policy, it still comes from an insurance company. That means that their main goal is to protect their profit margins and minimize payouts. You’ll still need to prove your injuries and losses if you want a shot at fair compensation.
• Don’t wait to notify insurers. Waiting to report an accident to the insurance company can cause a more in-depth investigation. In some cases, a long delay can result in the denial of the claim. Take action immediately after an accident to protect yourself.
• Don’t forget the importance of documentation. Because your claim will still need to go through an insurance company, you need the same evidence and documentation you’d need for any other car accident. Take pictures and video footage of the crash scene, get proof of your injuries, and keep track of lost wages if you want the insurance company to take your claim seriously.

Choose Cunningham & Mears after a rideshare accident

If you’ve been hurt in an Uber or Lyft accident, you could be entitled to compensation—but you may need to be aggressive about holding the company accountable for paying out your claim. That’s where we step in. Call our firm or get in touch with us online to start your claim now.