Rideshare services have made it more convenient to get around. Companies like Uber and Lyft offer commuters more options for arriving to work on time in the morning or meeting friends for dinner at the end of the day. As we grow comfortable with the convenience these services provide, we might be less prepared for what to do when an accident occurs.
If you rely on Uber or Lyft regularly, you should understand the potential consequences of getting into a rideshare accident.
Whose insurance will cover me?
If you’re in a rideshare accident as a passenger, determining whose insurance you will fall under depends on who caused the crash and the type of insurance they have. Generally, there are four areas:
- The rideshare driver is at fault. If your Uber or Lyft driver caused the accident, they are responsible for covering any injuries you sustain from the accident. This only applies if their insurance policy includes their coverage while working as a rideshare driver.
- The rideshare driver is at fault but doesn’t have the right coverage. If your driver doesn’t have enough coverage to account for passengers, then Uber and Lyft can help. Both companies feature third-party liability insurance coverages that can pay up to $1 million for injuries and damages. It’s important to note that Lyft’s policies exclude rides that start in New York City with a Taxi and Limousine Commission (TLC) driver.
- A non-rideshare driver is at fault. In this case, you will have to seek coverage from the non-rideshare driver, typically through a third-party insurance claim.
- A non-rideshare driver is at fault but is uninsured or underinsured. If the other driver doesn’t have car insurance or doesn’t have enough coverage to help with your injuries, Uber and Lyft both offer assistance with that as well. Their uninsured/underinsured insurance policies also cover up to $1 million for injuries and damages sustained from the accident.
Rideshare services are useful for New Yorkers every day. Understanding the limits of their coverage after an accident can be helpful in seeking recovery.