How Insurance Works In A Lyft Accident
Rideshare services like Lyft have changed how people get around, offering convenience and affordability for passengers and earning opportunities for drivers. But when an accident happens during a Lyft ride, things can quickly get confusing. Especially when it comes to insurance coverage.
Whether you’re a passenger, a Lyft driver, or another driver involved in a crash, it’s important to know how insurance applies and what your options are. If you’ve been hurt in a rideshare collision and have questions about liability or coverage, speaking with an experienced motor vehicle accidents attorney can give you the guidance needed to move forward confidently.
Different Lyft Accident Scenarios Affect Insurance Coverage
Insurance coverage for Lyft accidents depends heavily on what the driver was doing at the time of the crash. Lyft breaks this down into three periods:
- Period 1: The driver is logged into the app but has not yet accepted a ride.
- Period 2: The driver has accepted a ride and is en route to pick up the passenger.
- Period 3: The passenger is in the vehicle and the ride is active.
Each of these periods triggers a different level of coverage.
During Period 1, Lyft provides limited liability coverage: up to $50,000 per person and $100,000 per accident for bodily injury, plus up to $25,000 for property damage. This only applies if the driver’s personal auto insurance doesn’t cover the situation.
In Periods 2 and 3, Lyft’s full commercial insurance policy is in effect. This includes $1 million in third-party liability coverage, which can apply to passengers, other drivers, or pedestrians hurt in the crash. In some states, it may also include uninsured or underinsured motorist coverage and contingent collision and comprehensive coverage for the Lyft driver’s vehicle.
Passenger Claims And Coverage
If you were injured as a passenger in a Lyft vehicle, you are generally covered under Lyft’s $1 million liability policy during the ride. However, receiving compensation isn’t always automatic. You may still need to show proof of injury and demonstrate how the Lyft driver or another party was responsible for the crash. That’s why many people in these situations choose to partner with a Lyft accident lawyer for help with filing a claim and dealing with the insurance companies involved.
Claims Involving Other Drivers
Accidents that involve both a Lyft driver and another driver often lead to questions about who is responsible for damages. If the Lyft driver is at fault, their rideshare coverage should apply. If the other driver is responsible, their personal auto insurance should cover the costs.
However, if that driver is uninsured or lacks enough coverage, Lyft’s underinsured motorist policy may provide some protection—if it applies in your state.
Injured Lyft Drivers And Their Coverage
Lyft drivers may be eligible for coverage through the company’s contingent collision policy, but only if they already carry comprehensive and collision coverage on their personal insurance.
This policy may help cover damage to the vehicle during Periods 2 and 3, after paying a deductible. Lyft drivers injured while working may also be able to seek compensation through third-party claims if another driver caused the accident.
When To Meet With An Attorney
Auto accident claims involving Lyft often involve multiple parties and insurance carriers. It’s not unusual for people to run into delays or get low settlement offers. Working with an attorney can help you protect your rights and understand which coverage applies to your situation. Attorneys like our friends at the Choulos & Tsoi Law Firm can attest to the challenges people face in getting fair compensation after a rideshare crash.