GEICO, Farmers and State Farm all offer rideshare insurance policies as an add-on or standalone policy to cover any gaps that might exist when working for Lyft.
Lyft drivers must carry liability and rideshare coverage to legally operate their cars and protect themselves during any times when Lyft does not offer these protections.
What is Lyft’s coverage?
Lyft offers many people a flexible means of earning extra income. However, one accident could leave drivers without enough coverage to cover medical treatment or property damage bills, which could prove financially devastating for drivers who rely on ridesharing services to supplement their incomes. Luckily, drivers can mitigate risk by understanding all phases of Lyft coverage.
Lyft provides liability coverage of $50,000 per person and $100,000 per accident during both Period 1 (when drivers are actively waiting to receive requests), and Period 2 (once they have been matched with passengers and are on their way to pick them up), respectively. This covers physical injuries sustained as a result of accidents caused by their drivers; such as hospital bills and lost wages as well as repairs/replacement for damaged or destroyed vehicles.
At this stage of rideshare processes, Lyft drivers can become particularly vulnerable. Accidents often happen during this period if sitting in traffic or searching for parking is involved. Damage or injuries sustained at this phase could prove particularly costly to their business.
If a driver’s personal auto policy doesn’t provide liability, uninsured/underinsured motorist, personal injury protection and comprehensive coverages, Lyft may offer these policies on an as-needed basis for a contingent fee – subject to a $2,500 deductible; additionally they’re only applicable if collision coverage exists on their personal policy and passenger is present during travel.
At this point in their journey, drivers will likely have passengers in their vehicle. Therefore, it’s essential that they understand all of the rules of the road and know how to safely navigate in busy areas; having passengers also makes keeping an eye on the road more challenging, increasing chances of an accident occurring.
If a Lyft driver has been injured in an accident, they should contact an experienced Lyft accident lawyer as soon as possible. Such attorneys will help them understand which coverage types exist through Lyft and how this relates to personal auto policies.
Period one
Lyft provides drivers with limited liability insurance while they’re on the job, covering up to $1 million for any bodily injuries or property damages sustained in covered accidents caused by them. Furthermore, its third-party liability policy also offers coverage against uninsured/underinsured motorist claims and contingent comprehensive and collision damage claims. Drivers can purchase Lyft’s rideshare endorsement policy separately or as an add-on through their personal auto insurer for increased coverage while working.
Drivers should take special care during this initial period to ensure they have sufficient insurance coverage in case an accident should arise; drivers should review their own policies to ensure adequate liability limits and rideshare endorsement are present.
Period two occurs if a driver’s app is active but they haven’t been matched with a passenger yet, and Lyft’s primary liability insurance takes effect if an accident occurs while they’re heading towards picking up riders; Lyft also provides up to $1 Million of third-party liability coverage as well as $25,000 uninsured/underinsured motorist bodily injury protection for this period.
Lyft offers contingent comprehensive and collision coverage that provides physical damage coverage while on the job; however, this coverage does not extend to theft or vandalism of your own vehicle. Instead, this coverage pays up to the cash value or repair costs after meeting their $2,500 deductible; which is why drivers should also carry such protection as part of their personal policy portfolios.
Period three is when passengers are inside their vehicles and on their way to their destinations, at which point Lyft’s primary passenger injury and vehicle damage coverage kicks in; additionally, up to $1 Million secondary liability insurance protects any damages while driving between pick-up locations or transit between destinations; should there be an unavoidable collision, the driver can submit a claim through Lyft’s auto body repair network.
Period two
Uber and Lyft divide time spent driving into four “periods.” Period 0 refers to when drivers are off duty but still driving for personal purposes – should an accident occur during this period, you would file your claim under your personal auto policy.
Period one begins when your Lyft app is active but you haven’t matched with a rider yet. Lyft provides limited liability coverage with limits of $50,000 per person, $100,000 per accident, and $25,000 for property damage; these additional limits come on top of standard auto policy limits; however if an accident causes extensive damage to either vehicle or property these will not cover it; should this occur, collision and comprehensive policies can kick in to cover losses that go beyond these initial limits.
Period two is when you’re on your way to pick up a rider. In addition to higher liability limits, Lyft provides contingent comprehensive and collision coverage in addition to what you already have with your personal policy; however, in order for it to take effect you will first need to meet your car’s cash value deductible before it kicks in.
Period three begins once your passenger has been picked up and driven to their destination. Lyft provides additional liability, contingent collision, comprehensive, and death coverages as well as a $1 Million Policy should there be any injuries or deaths to any covered passengers during this phase.
If you need additional protection while logged into your Lyft account, most major auto insurers offer rideshare endorsement policies to supplement any physical damage protection provided by Lyft or any of their rides. Although not available everywhere, rideshare endorsement can help provide added layers of physical damage protection if an accident happens on the way to or from a ride en route to or from booking one – though costs will depend on both state and insurer. Shopping around will help ensure you’re covered at an appropriate level and cost effectively.
Period three
Lyft and Uber divide their drivers’ times logged on their apps into four distinct periods. Period one occurs when a driver opens the app but hasn’t been matched with any ride requests; period two occurs when they accept one and begin heading out towards their passenger or delivery order; finally period three is when someone jumps in their driver’s car to be transported directly to their destination. Lyft provides liability insurance during all three of these stages; they also provide contingent comprehensive and collision coverage so long as those coverages exist on a driver’s personal car policy.
Unfortunately, these limits often are not enough to cover the expenses resulting from an accident, and many insurers deny claims on the basis that drivers use their vehicle for commercial purposes – both drivers and passengers can find this frustrating.
If you have been involved in a Lyft accident, contacting an attorney from Los Angeles Lyft accident law can help protect your rights and get you the compensation that is due. These attorneys will fight hard for their clients’ rightful compensation.
Most rideshare companies require their drivers to carry higher policy limits than what is required of regular auto policies, typically $1,000,000 worth of bodily injury coverage per accident victim injured in Florida. Though most meet this standard, others may fall short.
Note that while Uber and Lyft provide some level of insurance, they do not provide liability coverage during Period 1. This means if you get into an accident while driving for Lyft, your personal car insurer might refuse to cover damages as they will assume you were using the car for business purposes when the accident happened.
To protect against this scenario, it’s wise to invest in either a rideshare-friendly policy or add one as an endorsement onto your existing policy. While these may be costly options, they will provide adequate protection throughout your journey.