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How Does Rideshare Insurance in California Work?

For most people, Uber and Lyft have replaced taxi services as the preferred method of transportation when needing a ride. Ridesharing services are no longer a trendy fad. They have become an integral part of our everyday lives. As such, many people have questions about rideshare insurance in California. For example, are drivers and passengers covered by rideshare insurance if a rideshare accident occurs? This is a question that everyone should know the answer to before using a rideshare app.

What Does Insurance for Rideshare Drivers Cover?

Both Uber and Lyft break up their insurance coverage for drivers into three distinct periods.

Period One:

The first period is when a driver turns on the app and is waiting for a customer. As a driver, you receive insurance coverage the moment you turn on the rideshare app. However, there are limits to insurance coverage. Both Uber and Lyft offer up to $50,000 for bodily injury liability per person. They also offer up to $100,000 for bodily injury per accident. Further, you also receive up to $25,000 in property damage per accident.

Period Two:

The second period is when a driver accepts a rider and is on his or her way to pick them up. As a result, the amount of coverage a driver receives increases. For example, both Uber and Lyft offer $1,000,000 in coverage for third-party auto liability. You will also receive uninsured/underinsured motorist coverage. However, the uninsured/underinsured motorist coverage limits vary by state. In California, it is equal to the amount of your liability coverage limits. Further, comprehensive collision coverage is also provided. This means that insurance will cover any physical damage to your vehicle during an accident, regardless of fault. However, there is a $2,500 deductible. You must pay this amount before an insurance company will pay the rest of your claim.

Period Three:

The third period is when a driver is transporting a rider to his or her destination. The amount of insurance coverage is the same as period two. Third-party auto liability, uninsured/underinsured motorist, and comprehensive and collision coverage are all provided.

What Are My Options as a Passenger in a Rideshare Accident?

As a passenger in a rideshare accident, the liability coverage provided by the rideshare company is there to cover your injuries. However, the insurance company and Uber or Lyft may resist paying your claim. Additionally, determining who is liable for a rideshare accident is often difficult.

If you have been injured in an Uber accident or Lyft accident, you need a San Jose rideshare accident attorney on your side. Your attorney can help you develop a strategy for recovering the financial compensation you deserve.

Contact a San Jose Rideshare Accident Lawyer

Rideshare accident cases present their own unique difficulties. You need an experienced hand to guide you when filing a claim. Contact the Law Offices of Braid Pezzaglia today at (408) 650-8955 for a free consultation. You can also fill out an online contact form. Attorney Braid Pezzaglia has over twenty years of experience handling car accident cases. He can answer your questions about personal injury law. Call today!