Lyft Insurance Coverage / Liability

Lyft Insurance Coverage / Liability

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In November 2017, Jason A. Plotkin presented a National Continuing Legal Education course on Uber & Lyft Litigation to attorneys and other legal professionals located throughout the country.  The course was designed to teach other lawyers how to handle the unique nuances of accidents involving Uber, Lyft and other ridesharing companies.

The Pinder Plotkin Legal Team will provide a three part blog series providing an overview of Uber & Lyft car accidents and the insurance coverage available.

In 2015, the National Highway Transportation and Safety Administration estimated that there were 6.3 million motor vehicle collisions reported to police departments across the country. Contrast that to the 1 million trips Lyft completes per day (according to its website) and, while not the same volume of rides as Uber, it is also inevitable that Lyft drivers and passengers will fall victim to motor vehicle collisions.

WHO PROVIDES COVERAGE AND HOW MUCH? THE MILLION DOLLAR QUESTION

The insurance company that insures the Lyft driver (personal policy covering his/her everyday driving), such as  Allstate, Geico, Erie, State Farm, Farmers, MAIF, etc?  It depends on the policy (the contract).  Most insurance carriers have excluded ride sharing (Uber), but offer a ride share rider that provides coverage. Unfortunately, in my experience, few Lyft drivers notify their personal insurance carrier that they are participating in a ride share program, thus they may not be covered.

How would the carrier know? There are many ways, but the most common, in my experience, is the Lyft sticker.  The property damage adjuster simply takes a photo of the property damage showing the sticker. The Pinder Plotkin Legal Team recently had a case where a client had signed up for Uber, but had not given a ride and the insurance carrier initially denied coverage because the Uber sticker was photographed in the glove box.

Lyft provides the following insurance coverage:

$1 million of liability coverage per incident. From acceptance to conclusion of a trip. Lyft holds a commercial insurance policy with $1 million of coverage that is primary to any personal auto coverage EXCEPT if the driver’s personal policy has a ride share rider.  Commercial auto coverage is also excepted.   Lyft’s policy is excess coverage for both instances: ride share rider/commercial policy.

$1 million of UM/UIM bodily injury coverage per incident. From acceptance to conclusion of a trip  Protects against hit and run / under/uninsured drivers.  No deductible.

Contingent comprehensive and collision insurance.  From acceptance to conclusion of a trip. If a Lyft driver’s personal policy includes collision insurance, then it is covered by Lyft’s policy if the damage occurs during a trip. $2,500 deductible. Most people refer to collision and comprehensive coverage as having “full insurance.” That is not always the case and it is important to provide your lawyer a copy of your insurance policy.

No fault coverage (Personal Injury Protection) is provided in certain states – $2,500 in Maryland, even though the Lyft insurance certificate publically available on its website (at the time of this blog) only states $2,000 in Maryland, Lyft is required to provide $2,500 of coverage.  This is one example of why it is important to retain an attorney experienced in Uber and Lyft litigation.  If the Lyft driver or its passenger’s personal PIP is in excess of $2,500 ($5,000 or $10,000), then additional PIP coverage may be available.

$50,000/$100,000/$25,000 of coverage between trips. This is a grey area, if the driver does not have personal coverage, then Lyft will provide Contingent Liability if the driver is in driver mode (available to accept a request). The policy has a $50,000 maximum limit per person, $100,000 maximum limit per accident, and a $25,000 maximum limit for property damage. There is no deductible under this policy.

Lyft provides coverage for Lyft drivers when driver mode is on. The driver status can be confusing and is summarized below:

Driver mode off: The driver’s personal insurance provides coverage.

Driver mode on but not yet accepted a ride: If the driver does not have personal coverage, then Lyft will provide Contingent Liability. The policy has a $50,000 maximum limit per person, $100,000 maximum limit per accident, and a $25,000 maximum limit for property damage. There is no deductible under this policy.

Driver mode on and ride request accepted through the end of Lyft ride: $1 million of liability coverage per incident. $1 million of UM/UIM bodily injury coverage per incident. $50,000/$100,000/$25,000 of coverage between trips. No Fault Coverage, maybe

In November 2017, Jason A. Plotkin presented a National Continuing Legal Education course on Uber & Lyft Litigation to attorneys and other legal professionals located throughout the country.  The course was designed to teach other lawyers how to handle the unique nuances of accidents involving Uber, Lyft and other ridesharing companies.  If you or someone you love has been injured, or even died, as the result of an Uber or Lyft car accident, the Pinder Plotkin legal team is on your side. Our attorneys have years of experience representing clients in auto accident cases and for other personal injury claims, and we’re prepared to fight aggressively in court to defend your rights.

We always offer free initial consultations for personal injury cases, so there’s no risk in speaking with us and receiving an honest and informed evaluation of your case. Call us at (410) 661-9440 or fill out our online contact form to speak with an attorney and discuss your legal options.

The information provided in this website is provided for informational purposes only, and should not be construed as legal advice on any subject. The information contained in this blog is also subject to change and should not be relied upon.

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