Editor’s Note: This blog was previously published in January 2019 and has been updated for accuracy – February 2025.
Do you know if you’re really covered in an Uber or Lyft accident?
In Part 1 of our series, we explored the rise in accidents involving rideshares like Uber and Lyft as their popularity has surged. With so many people relying on these services, it’s more important than ever to understand the risks involved. Now, in Part 2, we’re taking a closer look at how rideshare insurance works—and why it’s crucial to know what’s covered if you’re in an accident.
Uber and Lyft may have revolutionized transportation, but their operations began largely unregulated. Only recently have state governments stepped in to enforce rules on how these companies protect both drivers and passengers.
So, what happens if you’re in an accident while ridesharing? Whether you’re driving or catching a ride, knowing how insurance protects you can help you avoid costly surprises. Ridesharing may be convenient, but understanding your coverage is essential for your safety and peace of mind.
Insurance Coverage Explained
One of the necessary changes Uber and Lyft have had to adopt is to actually provide insurance for their drivers.
Both Uber and Lyft provide insurance coverage, but it depends on the stage of the ride:
- App Off (Personal Coverage): When drivers are offline, their personal auto insurance is in effect. Uber and Lyft’s insurance doesn’t apply.
- App On, No Ride Accepted (Limited Coverage): Once the driver has the app on but hasn’t accepted a ride, Uber and Lyft provide limited coverage for liability (usually up to $50,000 per person, $100,000 per accident). However, there’s no comprehensive or collision coverage.
- Ride Accepted or Passenger Onboard (Full Coverage): After a ride is accepted or while a passenger is in the car, both companies provide full coverage, including $1 million in liability, uninsured/underinsured motorist coverage, and contingent comprehensive and collision coverage.
Why It Matters to Drivers
For drivers, Uber and Lyft insurance fills the gap left by personal policies, which often don’t cover accidents that happen while earning money. However, personal policies are still necessary, as Uber and Lyft coverage only applies while using the app. Understanding these details can prevent costly surprises in the event of an accident.
Why It Matters to Passengers
As a passenger, knowing you’re covered by $1 million in liability insurance during your ride offers reassurance. If an accident occurs, you’re protected whether the driver is at fault or the other party. This coverage also includes uninsured or underinsured drivers, so you’re not left vulnerable.
The Bottom Line
Whether you’re a driver or a passenger, being aware of how Uber and Lyft insurance works is essential for your safety. It ensures that you understand who’s responsible in case of an accident and what coverage is available, giving you peace of mind whenever you’re on the road.
However, if you’re injured in an Uber or Lyft accident, dealing with insurance companies doesn’t always guarantee full compensation. That’s when you need an experienced attorney to help navigate the complexities of rideshare cases. Contact The Balams Firm at (404) 445-2005 to explore your options and seek the compensation you deserve.
